Swiggy, a popular food delivery company, is planning to go public by filing papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). They will submit these papers confidentially, which means that details about their business won’t be made public right away, unlike the normal process where everything is disclosed when the draft prospectus is filed.
This decision comes shortly after Swiggy’s shareholders approved a $1.25-billion IPO. The company aims to raise funds through this IPO, with part of it coming from new shares and part from existing shareholders selling their stakes.
Moneycontrol first reported Swiggy’s IPO plans back in March 2022. Swiggy intends to raise more funds from anchor investors before the IPO, but they haven’t provided official comments on these developments.
Swiggy will be the second major startup to file confidentially for an IPO, following Oyo which did so last year. This new process allows companies to keep their financial details private until later stages of the IPO process.
In terms of financial performance, Swiggy reported a loss of $207 million for the nine months leading up to December 2023. However, their revenue during this period was $1.02 billion. In the previous fiscal year (2022-23), Swiggy’s revenue increased by 45% to Rs 8,625 crore, but they also saw a wider net loss of Rs 4,179 crore compared to the previous year.
Comparatively, Zomato, another food delivery competitor, saw a 66% increase in revenue to Rs 7,761 crore in the same fiscal year, with their net loss narrowing to Rs 971 crore. Zomato has been profitable for the last three quarters and recently achieved a valuation of over $20 billion.
Swiggy’s last valuation was $10.7 billion when they raised $700 million in January 2022.
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