Swiggy Gears Up For The IPO As It Gets Shareholder Approval

The well-known food delivery platform, Swiggy is set to come up with its IPO with a size of $1.25 Billion after it got approval from its Shareholders, The Bangalore Company is going to raise to Rs.3750 crores via fresh issue and Rs.6,664 crores via Offer for Sale as reported.

Current Shareholding Pattern

Dutch-listed Prosus, which owns a 33% share in Swiggy, is the company’s top investor, followed by SoftBank, Elevation Capital, Meituan, Norwest Venture Partners, DST Global, Qatar Investment Authority, Alpha Wave Global, Invesco, Hillhouse Capital Group, and GIC are among the other shareholders.

The co-founders of the firm, Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, own 4.2%, 1.6%, and 1.2% of the company, respectively.

Arch Rivalry of Swiggy And Zomato

The Indian Food delivery market is expected to grow at an annual growth rate of 16% CAGR and major factors driving this growth rate would be an increase in demand and population.

The 2 Big sharks in this segment are Swiggy and Zomato, The rivalry between the 2 platforms has been intense for the past few years. While The Bangalore-based platform had a supreme share of 52% in 2020, Three Years after that it has ceded market share to its arch-rival, Zomato. Currently, Zomato leads with a market share of around 55% in the food delivery segment, The Two Giants also extend their rivalry into the Quick Commerce Segment with Zomato’s Blink it, against Swiggy’s Instamart.

Swiggy Appointed  Executive Directors

In its Extraordinary General Meeting on April 23, Swiggy appointed Sriharsha Majety as Managing Director and Group CEO,  While Nandan Reddy was given the role of Whole Time Director and Head of Innovation. Earlier the Company also appointed Suparna Mitra as director.

Financial Records Of Swiggy

The Financial performance of Swiggy is improving over time, Though there is tough competition from Zomato, Swiggy is trying to focus on Cost optimisation and is also going to cut some of its workforce to show profitability for the IPO  ahead.

Swiggy’s operational revenue for FY 2022-23 was Rs.8,265 crore, reflecting a 45% increase compared to FY 2021-22. However, the company’s net loss also rose by 15%, totalling Rs 4,179 crore.

Conclusion: The upcoming $1.25 Billion Swiggy IPO would be one of the most in talks this year, among the investors. With its already listed arch-rival Zomato performing brilliantly in the past 1 year after turning profitable, Swiggy would also be eyeing to maximise efforts to turn profitable with its IPO coming ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.