While Zomato has been the only listed food delivery platform in India until now, Swiggy is upping its game and is all set to become the second company in the food-tech space to get listed. Online food delivery aggregator Swiggy is targeting an IPO launch in November with the company having officially received a green light from the Securities and Exchange Board of India (SEBI) for its much-anticipated public listing. Swiggy has also now filed its updated Draft Red Herring Prospectus (DRHP) with the SEBI for an IPO to raise Rs 3,750 crore through a fresh issue and an offer for sale (OFS) expected to exceed Rs 6,500 crore, bringing the combined IPO size to well over Rs 10,000 crore.
With the funds raised, Swiggy plans to use it primarily to expand its quick commerce segment and strengthen its infrastructure. Per reports, Rs 137.41 crore will be allocated for debt repayment of its subsidiary Scootsy, while Rs 982.40 crore will be invested in expanding Scootsy’s dark store network.
Of this, Rs 559.10 crore will be used for setting up new dark stores, and Rs 423.30 crore will be spent on leasing or licensing payments. Additionally, Rs 586.20 crore will be put in technology and cloud infrastructure, Rs 929.50 crore for brand marketing and business promotion, and the remaining funds will support inorganic growth and general corporate purposes.
Swiggy’s growth journey
Swiggy was founded in 2014 and had a valuation of nearly $13 billion in April. According to Tracxn, the company’s revenue was recorded at Rs 11,600Cr ($1.41 billion) as on March 31, 2024 and has 4,439 employees as on July 31, 2024
Swiggy has reduced its losses by 43 per cent in FY24 to Rs 2,350 crore, fueled by growth in both its food delivery and quick commerce segments. The company’s revenue from operations grew by 36 per cent to Rs 11,247 crore in the same fiscal year. The company’s consumer-facing business, which includes food delivery, Instamart, and its dining services, reported a gross order value (GOV) of Rs 35,000 crore. Swiggy’s Instamart posted a gross revenue of Rs 1,100 crore in FY24, and its GOV stood at Rs 8,100 crore, indicating healthy demand.
…in comparison to Zomato
Meanwhile, Zomato posted robust Q1 numbers with profit at Rs 253 crore, posting a growth of 12550 per cent in comparison to Rs 2 crore recorded during the corresponding quarter of FY24. Q1FY24 was the first quarter when Zomato had posted a quarterly net profit. It posted revenue from operations at Rs 4,206 crore, up 74.1 per cent as against Rs 2,416 crore during the same period of previous fiscal year.
From: financialexpress
Financial News
