Swiggy gets shareholders’ nod for $1.2 billion IPO this year

Online food delivery platform Swiggy is planning to file for an initial public offering (IPO) worth $1.2 billion this year after receiving an approval from its shareholders.

According to a regulatory filing, the company aims to raise up to Rs 3,750 crore through a fresh issue and around Rs 6,664 crore as an offer-for-sale (OFS) component.

The regulatory filing, prepared after the extraordinary general meeting (EGM) of Swiggy on April 23, read that “the consent and approval of the shareholders of the company be and is hereby accorded to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of Rs 37,501 million by the way of a fresh issue of equity shares up to an aggregate amount of Rs 66,640 million by certain existing shareholders (OFS)”.

Swiggy did not immediately comment.

Prosus, one of the key investors in the online food delivery platform, has around 32 per cent stake in Swiggy.

SoftBank has around 8 per cent stake while VC firms Accel 6.2 per cent and Elevation Capital 4.4 per cent, according to Tracxn, a leading market intelligence platform.

Last month, US-based Baron Capital increased IPO-bound Swiggy’s valuation to $12.16 billion, higher than the $10.7 billion post-money valuation at which the company secured funding in early 2022.

Earlier this year, US-based investment company Invesco raised Swiggy’s valuation to about $8.3 billion.

The online food delivery platform’s net losses expanded to reach Rs 4,179 crore in the financial year ended March 31, 2023.