Business News
2 min read | Updated on November 13, 2024, 13:55 IST
SUMMARY
Swiggy's listing caps a successful ₹11,327 crore initial public offering (IPO) for the food delivery giant, marking the second-largest public issue in India this year.
Swiggy’s IPO listing still pales in comparison with Zomato’s blockbuster in 2021.
The initial public offering (IPO) of Swiggy, which raised $1.3 billion, also saw Prosus selling a partial stake valued at over $500 million. Following the IPO, Prosus retains around 25% ownership in Swiggy on a fully diluted basis and continues to hold two board seats.
"Everyone at Prosus extends huge congratulations to the Swiggy team on today’s IPO. We have supported the management team since our first investment in 2017 and have seen the company flourish in the post-pandemic era," Prosus CEO Fabricio Bloisi said in a statement.
Swiggy's listing, the second largest IPO in India for 2024, comes shortly after the company reached the milestone of 110 million transacted users and a 26% year-on-year growth in gross order value to $4.2 billion for FY24.
Sriharsha Majety, Swiggy’s founder and Group CEO, praised Prosus as an invaluable partner since 2017, crediting the firm’s global expertise in the food ecosystem as instrumental to Swiggy’s journey and its leadership in India's quick commerce sector.
"As we continue to innovate, grow, and evolve as a publicly listed company, I look forward to deepening our collaboration and drawing on their global insights and expertise in the sector," Majety added.
Swiggy listed at nearly an 8% premium against its issue price of Rs 390, and later surged 13.25% to Rs 441.95.
Majety expressed confidence in the company’s trajectory and said, “We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint and Instamart’s store network.”
On the reported CCI probe against food delivery platforms including Swiggy for anti-competition practices, Majety said, "we are following laws and practices with complete compliance."
A Competition Commission probe has found that food delivery platforms Zomato and Swiggy indulged in unfair business practices, including alleged preferential treatment to some restaurant partners, reported PTI.
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