Online food delivery platform Swiggy has received approval from the Securities and Exchange Board of India (SEBI) to launch an IPO. Swiggy had submitted draft papers to SEBI for an initial public offering (IPO) in April.
According to media reports, the company can launch this IPO in November this year. Through this, Swiggy is planning to raise more than Rs 11 thousand crore at a valuation of Rs 1.25 lakh crore. This will include fresh shares worth Rs 5000 crore.
Earlier, Swiggy had set a target of raising about $1.25 billion (about Rs 10 thousand crores) through its IPO. Out of this, about Rs 3,750 crore was to be raised through the sale of new shares and Rs 6,664 crore through Offer-for-Sale (OFS).
Swiggy wants to compete with Zomato and Blinkit
The purpose of this move by Swiggy is clear that it wants to compete with Zomato and Blinkit. Since Swiggy filed its draft IPO papers in April, both Zomato and Blinkit have increased their profitability.
Apart from this, new companies like Zepto have also strengthened their hold in the market by raising $1 billion in funding in the last two months. Not only this, Walmart has also increased the competition by entering the quick commerce segment through Flipkart Minutes.
Swiggy's revenue grew 36% in FY24
Meanwhile, Swiggy's financial condition has also improved. In FY 2024, Swiggy's revenue grew by 36% to Rs 11,247 crore from Rs 8,265 crore in the previous financial year.
During this period, the company also reduced its losses by 44% and in the financial year 2024 it stood at Rs 2,350 crore, which was Rs 4,179 crore in the previous year. The company has been able to reduce its losses by keeping its costs under control.
Although Swiggy's performance is lower than that of Zomato, it has still reduced the gap with its rival in FY24. Zomato reported a revenue of Rs 12,114 crore in FY24, while Swiggy's revenue stood at Rs 11,247 crore. Similarly, Zomato made a profit of Rs 351 crore, while Swiggy's loss was Rs 2,350 crore.
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