Swiggy IPO: Food delivery firm converts into public limited company, changes name to Swiggy Ltd

Food delivery app Swiggy has converted itself into a public limited company from a private limited firm ahead of the announcement of its $1-billion IPO (initial public offering) expected before the end of the year.

The company’s holding name has been changed from Swiggy Pvt Ltd to Swiggy Ltd in the documents submitted by the firm with the Registrar of Companies (RoC), according to an Economic Times report.

Earlier in February 2024, Swiggy had changed its registered name from Bundl Technologies Pvt Ltd to Swiggy Pvt Ltd. The company had said that the name was being changed “to help establish greater proximity and identification of the company’s corporate name with the company’s core brand”.

The move is significant as it cements the expectations of the company filing a draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) in the next few months for a $1-billion IPO.

Once that happens, the Swiggy IPO would join the long list of public issues that were launched by start-ups in recent months to cash in on the stock market momentum. Mamaearth’s parent company Honasa Consumer has already gone public in November 2023, while new-age Internet companies like Ola Electric, FirstCry and Awfis have filed their draft IPO papers.

Swiggy had recently reported a $207-million loss for the nine months through December 2023 on revenue of $1.02 billion. Before that, the company had posted a net loss of $501 million for full fiscal 2022-23 on operating revenue of $992 million.

Reports in January also claimed that Swiggy was cutting its workforce by 6%, laying off 350-400 employees, as it looks to trim costs and hit profitability in the run-up to the IPO.