Swiggy, the well-known food and grocery delivery giant, is set to increase its IPO size to Rs 5,000 crore, up from the previously planned Rs 3,750 crore. The decision comes as the company has demonstrated strong financial performance for the fiscal year ending March 31, 2024. Swiggy will seek approval for this increase during an extraordinary general meeting (EGM) with shareholders scheduled for October 3.
The IPO will include a fresh issue of Rs 5,000 crore, alongside an offer for sale worth Rs 6,664 crore. This move follows Swiggy’s confidential filing of its draft prospectus with the Securities and Exchange Board of India (SEBI). The final IPO size could differ, but the company’s enhanced financial standing has likely influenced the decision to raise the amount.
Swiggy’s financial performance has significantly improved, with the company reporting a 36% increase in revenue, reaching Rs 11,247 crore in FY24. The company also managed to reduce its net losses by 44%, bringing them down to Rs 2,350 crore. This recovery is attributed to better expense management and strategic business moves in both the food delivery and quick commerce segments.
The decision to expand the IPO size could also be influenced by competitive dynamics in the market. Swiggy’s main rival, Zomato, has achieved profitability and an increasing market capitalization, while players like Blinkit and Zepto are raising substantial capital. As Swiggy continues to compete in both the food delivery and quick commerce spaces, this upsized IPO positions the company to capitalize on growing market interest and further strengthen its financial footing.
