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Swiggy IPO: Swiggy the online food delivery app has changed its status from a private limited company to a public limited company, according to paperwork filed with the Registrar of Companies, as the food delivery and quick-commerce platform prepares for an initial public offering (IPO) later this year, writes The Economic Times.
Swiggy the online food delivery app changes to public limited company ahead of IPO, with goals to raise $1 billion
As Swiggy prepares for an IPO, the company’s holding company has been renamed ‘Swiggy Limited’ from ‘Swiggy Private Limited’, marking its transformation to a publicly traded entity. Swiggy is anticipated to file a draft red herring prospectus in the next months, with intentions to raise approximately $1 billion through an IPO near the end of 2024, according to the article.
Swiggy gives a 20% discount to high-net-worth individuals in a pre-IPO transaction: Report
As Swiggy the online food delivery app is preparing for an IPO, it is offering the high-net-worth individuals (HNIs) the opportunity to purchase its shares at a 20% discount from their current price, according to a research by Entrackr.
Swiggy’s appointed financial advisors are suggesting shares priced at ₹350 each, valuing the firm at ₹80,000 crore.
Initially, according to regulatory filings, US-based asset management company (AMC) Invesco raised Swiggy’s valuation by 19% to $12.7 billion ahead of its expected IPO. In January 2022, Invesco led a $700 million investment round for the food delivery firm, bringing its valuation to $10.7 billion.
Following that, Swiggy’s fair value was appraised by Baron Capital, an investor in the company, at $12.2 billion as of March 2024, providing a huge boost to the startup as it prepares for its IPO.
Swiggy’s valuation is becoming more comparable to that of its competitor, Zomato, as a result of these successive markups. On Wednesday, April 10th, Zomato’s shares closed at ₹197.30 per on the NSE. Intraday trading saw a record high of ₹199.60, approaching the psychological threshold of ₹200.
Swiggy is pushing forward with its IPO preparations as the market recovers from the ‘financing winter’. This is evidenced by recent valuation hikes in firms such as Meesho, PineLabs, FirstCry, and Ola Electric, all of which are preparing for public offerings this year or early next year.
According to an internal corporate document, Swiggy lost $200 million during the nine months ending December 2023. According to the document, Swiggy lost ₹41.8 billion ($500 million) in fiscal year 2022-23.
However, the company anticipates reducing losses for the fiscal year 2023–24 through lower wage payouts and reduced marketing spending.
