Swiggy’s confidential IPO filing gets Sebi nod, share sale likely in November

Mumbai: Food and grocery delivery startup Swiggy has received approval from the Securities and Exchange Board of India (Sebi) for a public listing, following its confidential IPO filing earlier this year, according to two people familiar with the development.

The company will now need to submit an updated draft red herring prospectus (DRHP), after which Swiggy can begin its roadshows for the initial share sale, the first of the two people cited earlier said, requesting anonymity.

Earlier this month, Mint reported that Swiggy's initial public offering (IPO), one of the most-anticipated, is expected to open in November. Mint's queries to Swiggy remained unanswered till press time.

Also read | Swiggy packs an IPO lunch for Instamart

Moneycontrol was the first to report the development.

Swiggy’s IPO comes almost three years after its closest competitor, Zomato, also backed by SoftBank, went public. Zomato’s stock is currently trading at nearly four times its issue price of ₹76.

Swiggy's IPO is expected to include both offer-for-sale (OFS) and fresh issue of shares, with the company aiming for a valuation of around $15 billion. However, the final valuation will become clearer once the roadshow begins.

Details of the Share Sale

Prosus Ventures, Norwest Venture Partners, and Goldman Sachs may sell some of their Swiggy shares in the $1.25 billion IPO. SoftBank, which had realized profits in recent IPOs of Ola Electric, Firstcry, and Unicommerce, is expected to hold onto its stake, Mint reported earlier.

Norwest and Prosus are among Swiggy's early investors, with Goldman Sachs joining in 2021 when Swiggy was valued at approximately $5 billion. SoftBank followed suit the following year.

Swiggy reduced its losses by 43%, totaling ₹2,350 crore in FY24, driven by rapid growth in its food delivery and quick commerce segments. Revenue from operations increased by 36%, reaching ₹11,247 crore. Its consumer-facing business, which includes food delivery, Instamart, and dining, reported a gross order value (GOV) of ₹35,000 crore, fuelled by 14.3 million monthly transacting users.

Also read: How Zomato and Swiggy are sparking a boom for small-city eateries

Swiggy Instamart's gross revenue in FY24 stood at ₹1,100 crore, against Blinkit's ₹2,301 crore. Instamart's GOV, an indication of all transacted orders on the platform, for the year was ₹8,100 crore, while Blinkit's stood at ₹12,469 crore.

The food delivery company plans to allocate most of the proceeds from its upcoming IPO to expand Instamart, its quick commerce business, to take on competitors like Blinkit, Zepto, and BigBasket.