Food and grocery delivery firm Swiggy may increase the fresh issue of its upcoming initial public offering (IPO) to Rs 5,000 crore. Swiggy’s board has passed a special resolution to issue equity shares worth up to Rs 5,000 crore, subject to shareholder approval at a meeting (EGM) on October 3, according to an internal document accessed by Entrackr.
The Bengaluru-based company had already targeted Rs 6,664 crore through an offer for sale (OFS).
In April, Swiggy had confidentially filed its IPO papers for Rs 10,400 crore (approximately $1.25 billion). The food delivery giant is reportedly targeting a valuation of around $15 billion for its stock market debut.
Swiggy recently reported a 36 per cent year-on-year increase in its operating revenue for FY24 to Rs 11,247 crore. This was driven by strong growth in its out-of-home consumption business and quick commerce vertical Instamart. During the same period, its losses were down 44 per cent from Rs 4,179 crore to Rs 2,350 crore.
The firm recently had a major reshuffle in its top deck ahead of its IPO, expected sometime later this month. It recently roped in Dhruvish Thakkar as assistant vice president for revenue and growth at Swiggy Dineout. Thakkar was senior director, head of revenue and marketing at Flipkart.
Before him, Flipkart’s former senior vice president and head of grocery, Amitesh Jha, was roped in by Swiggy. Jha has been appointed chief executive officer of Swiggy Instamart.
The competition is intensifying in the rapidly growing quick commerce space for Swiggy. Players like Zepto, Blinkit, and BB Now are rapidly expanding their operations, whether in terms of category expansion, scaling their dark store networks, or entering newer cities. Moreover, e-commerce incumbents like Flipkart and Amazon have also jumped into the mix.
According to a report by HSBC Global, Instamart’s market share has fallen from 52 per cent in March 2022 to 32 per cent in January 2024.
At the same time, Blinkit emerged as the market leader with a 40 per cent share, while Zepto’s market share has risen from 15 per cent in March 2022 to 22 per cent in January 2024.
First Published: Sep 10 2024 | 6:13 PM IST
