In a strategic move, Swiggy expands its IPO plans to raise ₹5,000 crore, increasing its initial target to strengthen its financial position. The food technology leader now aims to raise ₹5,000 crore through a fresh issue of shares, an increase from the previously projected ₹3,750 crore. This expansion of Swiggy’s IPO reflects its commitment to strengthening its market position and preparing for future growth.
The revision, which represents an additional Rs 1,250 crore (approximately $150 million), will bring the total anticipated IPO size to around $1.4 billion, an increase from the initial $1.25 billion estimate. This adjustment reflects Swiggy’s efforts to strengthen its financial reserves in response to escalating competition in the quick commerce sector.
Originally, Swiggy’s IPO was planned to include Rs 3,750 crore from new shares and an offer-for-sale (OFS) component valued up to Rs 6,664 crore. The proposed increase in the fresh issue amount, subject to approval at an extraordinary general meeting (EGM) scheduled for October 3, will result in a total fundraising goal of $1.4 billion. As of now, there are no changes proposed for the OFS portion.
The decision comes amid a rapidly evolving market landscape. Since Swiggy filed its draft IPO papers in April, competitors such as Zomato and Blinkit have reported improved profitability and heightened market valuations. Notably, Zepto has attracted significant investment, securing $1 billion over the past two months, while major players like Walmart have entered the quick delivery market with Flipkart Minutes.
Despite facing stiff competition, Swiggy has shown promising financial improvements. For the fiscal year 2024, the company’s revenue surged by 36 percent, rising from Rs 8,265 crore in FY23 to Rs 11,247 crore. Concurrently, Swiggy reduced its losses by 44 percent, from Rs 4,179 crore to Rs 2,350 crore, thanks to enhanced expense management.
In contrast, Gurugram-based Zomato reported revenue of Rs 12,114 crore and achieved a profit of Rs 351 crore for FY24, highlighting the competitive pressures Swiggy faces.
