Swiggy shareholders give the greenlight to $1.2-billion IPO

Sriharsha Majety. co-founder and Group CEO of Swiggy

Food tech giant Swiggy has received the approval from shareholders for a $1.2-billion initial public offering (IPO), according to regulatory filings with the registrar of companies (RoC).

The Bengaluru-based company plans to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) as an offer-for-sale (OFS) component, the filings further showed.

Moneycontrol was first to report that Swiggy was preparing for its mega $1 billion IPO in March 2022. The company also plans to raise around Rs 750 crore from anchor investors ahead of its IPO which is slated for earlier this year, as per the filings sourced via Tofler and TheKredible.

Swiggy did not reply to queries on the same.

"...the consent and approval of the shareholders of the company be and is hereby accorded to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of Rs 37,501 million by the way of a fresh issue of equity shares up to an aggregate amount of Rs 66,640 million by certain existing shareholders (OFS)..." the company said in its regulatory filing made after the Extraordinary General Meeting (EGM) on April 23.

Investors like Prosus, which owns around 32 percent in Swiggy, will be seen selling shares in the IPO-bound company as it will aim to reduce its shareholding to below 25 percent. SoftBank (8 percent), Accel (6.2 percent), founder group (6.7 percent), Elevation Capital (4.4 percent), Norwest, Tencent, DST Global, Alpha Wave, are some of the other investors in the company, as per Tracxn, a private markets data provider.

In the same EGM, Sriharsha Majety and Nandan Reddy were appointed executive directors of the company. Majety was designated as managing director and group CEO, while Reddy was named whole-time director and head of innovation.

In the run up to the IPO, Swiggy recorded a $207 million loss for the nine months to December 2023. That loss was on a revenue of $1.02 billion during the same period, compared with fiscal year 2022-23 revenue of $1.05 billion, as reported earlier.
Earlier this year, Majety told Moneycontrol that IPO preparation was underway and he was spending more time with the founders of listed companies to operate like a publicly listed company.