Online food delivery platform Swiggy has received approval from the Securities and Exchange Board of India (SEBI) to launch an IPO. Swiggy submitted draft papers to Sebi for its initial public offering (IPO) in April.
According to media reports, the company may launch this IPO in November this year. Swiggy through this Rs. 1.25 lakh crore worth Rs. Planning to raise more than 11 thousand crores. 5000 crore new shares will come.
Earlier, Swiggy had targeted to raise around $1.25 billion (roughly Rs 10 thousand crore) through its IPO. In which through sale of new shares approximately Rs. 3,750 crore and through offer-for-sale (OFS) Rs. 6,664 crore was to be raised.
Swiggy wants to compete with Zomato and Blinkit
Swiggy's move is clearly aimed at competing with Zomato and Blinkit. Both Zomato and Blinkit have increased their profitability since Swiggy filed its draft IPO papers in April.
Apart from this, new companies like Zepto have also strengthened their grip on the market by raising $1 billion in funding in the last two months. Not only this, Walmart has stepped up competition by entering the fast commerce segment through Flipkart Minutes.
Swiggy's revenue will grow by 36% in FY 2024
Meanwhile, Swiggy's financial condition has also improved. Swiggy's revenue to grow 36% in FY2024 to Rs. 11,247 crore, which in the previous financial year was Rs. 8,265 crores.
During this period, the company also reduced its losses by 44% and in FY 2024 it was Rs. 2,350 crore, which in the previous year was Rs. 4,179 crores. It has helped the company reduce losses by keeping its costs under control.
Although Swiggy has underperformed Zomato, it has narrowed the gap to its rival in FY24. Zomato in FY24 generated Rs. 12,114 crore in revenue, while Swiggy's revenue was Rs. 11,247 crores. Similarly Zomato Rs. 351 crore in profit, while Swiggy made Rs. 2,350 crore was lost.
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