Swiggy Set To Increase IPO Size, Looks To Raise Rs 5,000 Crore In Place Of Earlier Goal Of Rs 3,750 Crore

Swiggy, the food delivery and quick commerce firm, is set to raise Rs 5,000 crore ($602 million) in a fresh issue as part of its initial public offering (IPO).

The company, which was first expected to raise Rs 3,750 crore (around $450 million) through a fresh issue, will now issue fresh shares worth Rs 5,000 crore (about $600 million), an increase of Rs 1,250 crore or $150 million, as it readies a cash chest in a highly competitive market.

According to an internal document accessed by News18.com, 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.

In all, Swiggy was initially expected to raise $1.25 billion through its IPO, Rs 3,750 crore (around $450 million) in fresh issue and up to Rs 6,664 crore (around $800 million) as part of the offer-for-sale (OFS). However, suppose the company’s board approves the new proposal at its extraordinary general meeting (EGM) on October 3. In that case, the total IPO size will be around $1.4 billion, up from $1.25 billion, with the additional $150 million coming in via a fresh issue. There are no plans to change the OFS component yet.

Since April, when the company first filed its draft IPO papers, rivals like Zomato and Blinkit have improved profitability and increased market capitalisation, too. Investors have flocked to invest in other players like Zepto, which has has raised $1 billion in the past two months and are increasing competitive intensity in the quick commerce space. Larger rivals, like Walmart, have also entered the rapid delivery space through Flipkart Minutes.

Swiggy did not reply to News18.com’s queries. News website Entrackr was first to report the development.

Ahead of the IPO, Swiggy secured strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites. Meanwhile, investor Baron Capital recently valued Swiggy at $14.5 billion.

The food tech firm demonstrated strong financial growth with 36% year-on-year growth in revenue to Rs 11,247 crore in FY24 and cut its losses by 44% to Rs 2,350 crore in the same period. Swiggy’s food business contributed Rs 6,100 crore to its overall income, while its quick commerce arm, Instamart, generated Rs 1,100 crore in gross revenue in FY24.

Gurugram-based Zomato, in comparison, had a revenue of Rs 12,114 crore (vs Swiggy’s Rs 11,247 crore) and clocked a profit of Rs 351 crore (vs Swiggy’s loss of Rs 2,350 crore) in FY24.