Swiggy IPO: Firm files updated RHP; to launch fresh issue worth ₹3,750 crore; check other key updates

The proposed IPO comprises a fresh issue of equity shares worth ₹3,750 crore and an offer-for-sale (OFS) of 18.52 crore equity shares by existing shareholders, according to the updated draft red herring prospectus (UDRHP).

Those selling shares in the OFS are Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V BV, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings BV, Norwest Venture Partners VII-A Mauritius, and Tencent Cloud Europe BV.

Going by the IPO papers, proceeds from the fresh issue to the tune of ₹137.41 crore will be used for debt payment of subsidiary Scootsy.

Further, ₹982.40 crore will be invested in Scootsy to expand the Dark Store network in the Quick Commerce segment, with ₹559.10 crore allocated for setting up Dark Stores and ₹423.30 crore for lease or license payments.

The company will also invest ₹586.20 crore in technology and cloud infrastructure, ₹929.50 crore for brand marketing and business promotion, and funds will be allocated for inorganic growth and general corporate purposes.

Swiggy Financials

The food delivery company posted ₹2,350 crore in net loss in the last fiscal year (FY24). However, the company reduced the net loss by 44% from ₹4,179 crore in FY23.

Swiggy’s gross order value (GOV) stood at $4.2 billion, up 26% year-on-year (YoY) as monthly transacting users were around 14.3 million.

According to the company’s FY24 financial report, profitability has sharply improved year-on-year “as the peak of investments in Instamart is behind us and the business continues to grow rapidly.”