Swiggy Aims to Raise Rs 5,000 Cr Through Fresh Issue Ahead of IPO

Swiggy, a leading food and grocery delivery platform in India, is set to raise Rs 5,000 crore through a fresh issue as part of its upcoming Initial Public Offering (IPO). The decision to increase the fundraising target will be discussed at an extraordinary general meeting (EGM) scheduled for October 3, according to a formal notice sent to shareholders.

The Bengaluru-based company had initially planned to raise Rs 3,750 crore through a fresh issue, alongside an additional Rs 6,664 crore via an offer for sale. However, this revised figure of Rs 5,000 crore may be subject to change, pending final approval from shareholders. Swiggy has already made a confidential filing of its draft prospectus with the Securities and Exchange Board of India (SEBI) and received board approval for the public offering in April.

This move to raise additional funds comes as Swiggy strengthens its position in India’s competitive food delivery and quick commerce markets. Recently, Swiggy reported a 36 percent rise in operating revenue to Rs 11,247 crore for the fiscal year ending March 31, 2024. Despite this revenue growth, the company posted a net loss of Rs 2,350 crore, marking a 44 percent reduction from the previous year.

Swiggy continues to face stiff competition from Zomato in the food delivery sector and rivals such as Blinkit, Zepto, and BigBasket in the quick commerce segment, where its Instamart division plays a key role. 

In preparation for its IPO, Swiggy has seen several secondary transactions, with prominent investors acquiring stakes in the company. On August 28, Bollywood star Amitabh Bachchan’s family office bought a small stake, while Motilal Oswal Financial Services chairman Raamdeo Agrawal and Hindustan Composites have also secured shares in the business.

Swiggy’s IPO is shaping up to be one of the most highly anticipated public offerings, with the company looking to strengthen its financial foundation through the fresh issue. The final size of the IPO will depend on the outcome of shareholder discussions at the upcoming EGM.