Swiggy, one of India’s top food and grocery delivery platforms, has raised approximately Rs 5,085 crore (around $600 million) from over 75 anchor investors for IPO. The Bengaluru-based company, competing with Zomato, announced the fundraising through a stock exchange filing on Tuesday.
Prominent investors in this round include well-known financial institutions such as BlackRock, Fidelity, SBI Mutual Fund, ICICI Prudential, HSBC, and BNP Paribas. These investors have received shares priced at Rs 390 each.
IPO Size and Structure
Swiggy IPO (Initial Public Offering) is valued at Rs 11,327.43 crore, and it includes both a fresh issue of shares and a secondary offering by existing shareholders. The primary issuance, which is the fresh fund raise, stands at Rs 4,499 crore, while the secondary offering (Offer for Sale) is Rs 6,828 crore.
This IPO is expected to be one of the largest in India this year, and it’s among the biggest in the country’s food-tech sector, second only to Zomato’s 2021 IPO.
Investor Support
The anchor portion of the Swiggy IPO has seen participation from both domestic and international anchor investors. A significant share of the allotments has been directed towards Indian institutions, such as SBI Mutual Fund, Kotak Mutual Fund, HDFC Life, and Axis Mutual Fund. These anchor investors are expected to provide stability to the IPO, encouraging further interest from retail and non-institutional investors.
Financial Performance
Swiggy has shown impressive growth in its financials. For FY24, the company reported a 36% increase in revenue, reaching Rs 11,247 crore, compared to Rs 8,265 crore in FY23. Losses narrowed by 44%, falling to Rs 2,350 crore from the previous year.
The funds raised through the IPO will support Swiggy’s expansion plans, particularly in its dark store network. The company also plans to invest in technology, marketing, and acquisitions to strengthen its position in the competitive food delivery market.
Swiggy’s entry into the public market is a strategic move to strengthen its position against Zomato, which currently holds a market valuation of Rs 2.1 trillion (as of November 6, 2024).
