Swiggy gets shareholders' nod for $ 1.2 billion IPO
-, Apr 25, 2024, India Blooms News Service218
New Delhi: Bengaluru-based food tech company Swiggy has obtained approval from its shareholders for its upcoming $1.2-billion initial public offering (IPO).
The food and grocery delivery company aims to raise up to Rs 3,750 crore ($450 million) in fresh capital, along with an offer-for-sale (OFS) component of up to Rs 6,664 crore ($800 million), according to the filings submitted to the Registrar of Companies.
Although Swiggy has not yet filed its IPO documents with the Securities and Exchange Board of India (Sebi), it intends to secure approximately Rs 750 crore from anchor investors through a pre-IPO round.
Swiggys IPO is part of a wave of new-age startups, including omnichannel retailer Firstcry, Ola Electric, and Awfis, among others, gearing up to go public this year.
...the consent and approval of the shareholders of the company be and is hereby according to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of Rs 37,501 million by way of a fresh issue of equity shares and an offer for sale of such number of equity shares up to an aggregate amount of Rs 66,640 million by certain existing shareholders, the filing read.
The special resolution was approved during an extraordinary general meeting (EGM) of Swiggys shareholders held on April 23rd.
Swiggy shareholding pattern
Dutch-listed Prosus holds the largest stake in Swiggy, owning 33% of the company, followed by SoftBank. Other notable shareholders include Accel, Elevation Capital, Meituan, Norwest Venture Partners, Tencent, DST Global, Qatar Investment Authority, Coatue, Alpha Wave Global, Invesco, Hillhouse Capital Group, and GIC.
According to data from Tracxn, the companys cofounders Sriharsha Majety, Nandan Reddy, and Rahul Jaimini own 4%, 1.6%, and 1.2% stake, respectively. Jaimini transitioned from his operational role in 2020 to pursue another venture, Pesto Tech.
During the April 23 EGM, Majety and Reddy were appointed as executive directors of the company. Majety assumed the role of managing director and group CEO, while Reddy was appointed as a whole-time director and head of innovation.
However, a Swiggy spokesperson did not provide responses to queries at the time of publishing this story.
In the fiscal year ending March 2023, Swiggy disclosed revenue from operations amounting to Rs 8,265 crore, marking a substantial 45% increase from FY22.
However, the company also experienced a 15% rise in its net loss, which reached Rs 4,179 crore during the same period.