2024-09-24 21:42:29 :
Mumbai: Food and grocery delivery startup Swiggy has received approval for a public listing from the Securities and Exchange Board of India (Sebi) after filing for a confidential IPO earlier this year, two people familiar with the matter said.
The company will now need to submit an updated draft red herring prospectus (DRHP) after which Swiggy can begin the roadshow for its maiden share sale, said the first of the two people, who requested anonymity.
earlier this month, Mint According to reports, Swiggy’s most anticipated initial public offering (IPO) is expected to launch in November. Mint’s queries to Swiggy remained unanswered as of press time.
Fund control was the first to report the development.
Swiggy’s IPO comes nearly three years after its closest rival, Zomato, which is also backed by SoftBank, went public. Zomato shares are currently trading at nearly four times the issue price $76.
Swiggy’s IPO is expected to include an offer for sale (OFS) and a fresh share issue, with the company targeting a valuation of about $15 billion. However, the final valuation will become clearer once the roadshow begins.
Share sale details
Prosus Ventures, Norwest Venture Partners and Goldman Sachs may sell some of their Swiggy shares in the $1.25 billion IPO. Mint had earlier reported that SoftBank, which posted profits in recent IPOs of Ola Electric, Firstcry and Unicommerce, is expected to retain its stake.
Norwest and Prosus were among the early investors in Swiggy, with Goldman Sachs joining in 2021, when Swiggy was valued at about $5 billion. SoftBank followed suit the following year.
Swiggy’s losses reduced by 43% in total $Revenue stood at Rs 2,350 crore in FY24, driven by rapid growth in food delivery and fast commerce segments. Operating income increased by 36%, reaching $11,247 Crores. Its consumer-facing businesses include food delivery, Instamart and catering, with a gross order value (GOV) of $35,000 crore, driven by 14.3 million monthly transacting users.
Swiggy Instamart’s total revenue for FY24 is $1,100 Crores Against Blinkit $2,301 Crores. Instamart’s GOV (an indicator of all trading orders on the platform during the year) is $8,100 crore, while Blinkit’s amount was $12,469 Crores.
The food delivery company plans to use most of the proceeds from its upcoming IPO to expand its quick commerce business, Instamart, to compete with rivals such as Blinkit, Zepto and BigBasket.
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