Food tech giant Swiggy is gearing up to raise more funds from its initial public offering (IPO). Originally, the company planned to raise Rs 3,750 crore (about $450 million) through a fresh issue of shares. However, it’s now looking to increase this amount to Rs 5,000 crore (around $600 million).
Why Swiggy is Boosting Its IPO to Rs 5,000 Cr – Let’s Explore the Key Insights!
Swiggy IPO News: Latest Strategy
Swiggy IPO with the revised plan would mean an additional Rs 1,250 crore, or $150 million.
Why this change in the Swiggy IPO size?
Swiggy’s decision to boost the IPO size comes as it faces fierce competition from rivals like Zomato and Blinkit. As per the reports, they have recently improved their profitability and market presence. The Swiggy ipo size increase will help strengthen its position in a highly competitive market. This comes at a time when others, such as Walmart with Flipkart Minutes, have also entered the quick delivery service space.
Details of the Swiggy IPO Price
Swiggy’s IPO was initially set to raise a total of $1.25 billion. This included Rs 3,750 crore (around $450 million) from the fresh issue and up to Rs 6,664 crore (about $800 million) from the offer-for-sale (OFS) component. If the company’s board approves the new proposal at the extraordinary general meeting (EGM) scheduled for October 3. There will be an official Swiggy IPO size increase. The additional $150 million will come from the fresh issue, with no changes planned for the OFS component as of now. The swiggy ipo share price shall be declared soon.
Competitive Market Dynamics
Since Swiggy filed its draft IPO papers in April, the competitive market has intensified. Apart from Zomato and Blinktik, Zepto, another player in the quick commerce sector, recently raised $1 billion over the past two months.
Swiggy Financial Performance Update 2024
Despite trailing behind Zomato in various metrics, Swiggy has made progress, as evident from its financial year (FY24) performance. Swiggy’s revenue grew by 36 percent, increasing from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. Additionally, the company managed to reduce its losses by 44 percent, from Rs 4,179 crore to Rs 2,350 crore. This financial improvement is due to better expense management as Swiggy prepares for its stock exchange listing later this year.
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Comparison with Zomato
In contrast, Gurugram-based Zomato reported a revenue of Rs 12,114 crore and a profit of Rs 351 crore in FY24. This is higher compared to Swiggy’s revenue and loss figures for the same period.
What’s Next for Swiggy?
If the board approves the new plan, the total Swiggy IPO size will rise to around $1.4 billion from the initial $1.25 billion. This change in the Swiggy IPO amount will be finalised at the company’s extraordinary general meeting (EGM) on October 3.
This adjustment reflects Swiggy’s strategy to stay competitive.
Source: MoneyControl
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