Swiggy takes confidential route for $1.25-billion public listing. Here's what that means

Food and grocery delivery major Swiggy reportedly filed draft documents for an initial public offering with Sebi. According to reports, the firm has made a confidential filing, implying DRHPs under this category need not be made public.

BT could not independently verify the reports but the development comes after Swiggy’s shareholders approved a proposal for a $1.25-billion public issue, which includes 450 million fresh shares and a $800-million offer-for sale (OFS) by existing shareholders.

A special resolution was passed at an extraordinary general meeting of Swiggy on April 23, they said. The Bengaluru-based company plans to raise up to Rs 3,750 crore funds through fresh equity shares, in addition to an offer-for-sale component of up to Rs 6,664 crore.

The company is reportedly looking to shore up about Rs 750 crore from anchor investors in a pre-IPO round.

Swiggy appointed co-founders Sriharsha Majety and Nandan Reddy as executive directors in the meeting. Majety was designated as managing director and group CEO. Zomato, Swiggy's main rival in the food delivery space, listed in 2021.

As per a Bernstein note from January, Zomato held a roughly 54% share in the food delivery from a gross merchandise value perspective as of the first half of calendar year 2023, while Swiggy held the rest. Swiggy's backers include Prosus, Accel, SoftBank, and Invesco among several others. The company was valued at $10.7 billion when it raised $700 million in 2022.

Last month, Reuters reported that Swiggy incurred a loss of $200 million with a revenue of $1.02 billion for the nine months till December 2023, based on an internal document.

Swiggy, founded in 2014, has a valuation of USD 12.7 billion as on April 10, 2024. Its annual revenue stood at USD 1.09 billion as on March 31, 2023. The company has more than 4,700 employees, according to Tracxn, a global startup data platform.