Swiggy Secures Shareholders' Approval for $1.25 Billion IPO

In a momentous development, Swiggy has secured approval from its shareholders for a substantial $1.25 billion initial public offering (IPO). This significant milestone, as confirmed by regulatory filings submitted to India's Ministry of Corporate Affairs, marks a new chapter in Swiggy's journey.

The proposed IPO is strategically designed to raise Rs 3,750 crore ($450.01 million) through the issuance of new shares. In a move that reflects their confidence in Swiggy's future, existing shareholders are set to offload shares worth Rs 6,664 crore ($799.67 million) as part of the offering.

Swiggy, a famous food delivery company, recently received approval to go public. This approval wasn't just a routine thing; it came after a special meeting on April 23, at which a resolution was passed. The company's co-founders, Sriharsha Majety and Nandan Reddy, were also appointed as executive directors, further reinforcing the company's leadership structure.

While the regulatory filing didn't specify a definitive date for the IPO, this development clearly signals Swiggy's strategic intent to tap into the public markets for a significant capital infusion. This move is expected to fuel the company's future growth and expansion plans.

It's worth noting that Zomato, Swiggy's key competitor, embarked on its IPO journey in 2021. According to a January report by Bernstein, Zomato commanded a dominant 54% share in the food delivery market by gross merchandise value in the first half of 2023, leaving Swiggy trailing behind.

Swiggy, backed by prominent investors including Prosus, Accel, SoftBank, and Invesco, has witnessed substantial growth. Following a $700 million funding round in 2022, its valuation soared to $10.7 billion.

Swiggy is a company that delivers food to people's homes. It has faced some difficulties but has managed to stay strong. According to a document shared with Reuters, Swiggy made $1.02 billion in revenue over the nine months leading up to December 2023. However, the company also lost $200 million during that same period. Despite the challenges, Swiggy has been able to compete in a tough market and find ways to keep going.