Amitabh Bachchan to KJo: The star-studded cast of Swiggy's IPO

Amitabh Bachchan to KJo: The star-studded cast of Swiggy's IPO
27 Sep 2024

Swiggy, a leading food and grocery delivery platform, has attracted significant investment from prominent figures in the entertainment, sports, and business sectors.

This financial backing comes ahead of its highly anticipated initial public offering (IPO).

The company recently submitted its updated draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), outlining an IPO comprising a fresh issue of shares worth ₹3,750 crore and an offer-for-sale component of 18.53 crore equity shares.

Swiggy's pre-IPO shares witness robust demand
Investor interest

Swiggy's pre-IPO shares have experienced robust demand in the unlisted market, with approximately 200,000 shares already purchased by high-profile individuals.

Among these investors are cricketers Rahul Dravid and Zaheer Khan, tennis player Rohan Bopanna, filmmaker Karan Johar, and actor-entrepreneur Ashish Chowdhry.

In previous funding rounds, Bollywood legends Amitabh Bachchan and Madhuri Dixit Nene had also invested in the company.

Swiggy aims for $15 billion valuation through IPO
Valuation goals

Swiggy is aiming for a valuation of $15 billion through its IPO, according to Reuters.

This ambitious target follows a series of high-profile funding rounds that attracted global venture capital giants like SoftBank Vision Fund, Accel, and Prosus.

The Bengaluru-based start-up's last funding round in 2022, led by asset manager Invesco, valued it at $10.7 billion.

Swiggy's IPO coincides with Zomato's market success
Market dynamics

Swiggy's IPO comes as its rival Zomato shares are scaling highs following a successful public debut.

Zomato was listed in 2021 at a premium of 52% over its IPO price and has given multibagger returns so far.

The two companies together control over 90% of the market, which is estimated to grow to ₹2 lakh crore by 2030.

Swiggy's financial performance ahead of IPO
Financial outlook

Despite a 36% increase in revenue to ₹11,247 crore in FY24, Swiggy reported losses of ₹2,350 crore. This is a significant reduction from the previous fiscal year's loss of ₹4,179 crore.

The company has been focusing on cost control and margin improvement ahead of its IPO.

However, the updated DRHP shows that the latest quarterly loss widened to ₹611 crore from ₹564 crore during the same period last year.