Swiggy, the food tech major, has received shareholders approval for an initial public offering (IPO). Close to ₹10,414 crore will be mobilised from the IPO, which will be a fresh issue of shares and offer-for-sale (OFS) from certain selling shareholders.
The size of the fresh offering will be to the tune of ₹3,750 crore, the OFS component will be up to ₹6,664 crore. Of the total amount, around ₹750 crore could be raised from anchor investors.
Swiggy, founded in 2014, has a valuation of $12.7 billion according to Invesco, which had led a $700 million funding round of the firm in January 2022. Swiggy was then valued at $10.7 billion.
In March, Baron Capital had raised the valuation to $12.1 billion, which was an increase of 13 per cent from the fund raise in 2022.
The company has more than 4,700 employees, according to Tracxn, a global start-up data platform
Swiggy may file draft papers with the Sebi sometime next month and the IPO could happen in the second half of this calendar year. The special resolution for the IPO was passed at an extraordinary general meeting held on April 23.
Prosus is the single largest investor in Swiggy with a stake of 32 per cent. Co-founders Sriharsha Majety, Nandan Reddy and Rahul Jaimini collectively hold around 6.7 per cent according to Tracxn.
SoftBank, Accel, Elevation Capital and Tencent are some of the other investors apart from Invesco and GIC.
Ahead of the planned IPO, Swiggy has converted into a public limited company. Its name was reportedly changed to Swiggy Limited from Swiggy Private Limited.
