India’s Swiggy Prepares for IPO: Shifts to Public Limited Company Amidst Expansion Plans

Indian food delivery platform Swiggy has undergone a corporate transformation, transitioning from a private limited entity to a public limited company, according to reports. The company’s decision to change its status was formalized through filings with the Registrar of Companies (RoC), indicating a strategy ahead of its anticipated initial public offering (IPO) later this year.

Swiggy, now known as Swiggy Limited, is one of the prominent players in the quick-commerce sector. Formerly known as Swiggy Private Limited, the food tech startup has rebranded itself as ‘Swiggy Limited,’ transitioning to a publicly traded entity. 

The move comes amidst speculations that the company, valued at over $12 billion, may unveil its draft red herring prospectus (DRHP) as early as this month, with plans to launch its initial public offering (IPO) by the end of the year, aiming to raise approximately $1 billion in capital.

The decision to go public mirrors a broader trend within India’s tech ecosystem. Several homegrown internet companies, including Ola Electric, FirstCry, and Awfis, are gearing up for their respective Dalal Street debuts. Swiggy has shown an aspiration to tap into the investor appetite for technology-driven firms, following in the footsteps of Mamaearth’s parent company, Honasa Consumer, which went public in November.

Despite reporting a revenue of $1.02 billion for the nine months ending December 2023, Swiggy recorded a loss of $207 million. This loss contributed to the company’s net loss of $501 million for 2023 despite operating revenue of $992 million. The company’s financial performance indicates the challenges it faces in achieving profitability amidst fierce competition in the food delivery sector.

In line with its efforts to streamline operations and cut costs, Swiggy announced plans to downsize its workforce by 6%, affecting approximately 350-400 positions across various departments, including technology, call centers, and corporate functions. 

Additionally, Swiggy made headlines with the appointment of Suparna Mitra, the Chief Executive of Titan’s watch division, as an independent director to its board. This strategic addition brings valuable expertise to Swiggy’s leadership team and underscores the company’s focus on strengthening its corporate governance framework as it prepares for its public listing.

According to a Moneycontrol report, Swiggy, backed by Softbank, has enlisted the services of seven investment banks to advise on its IPO preparations. Among the banks selected are Kotak Mahindra Capital, Citi, JP Morgan, Bofa Securities, Jefferies, ICICI Securities, and Avendus Capital. However, AsiaTechDaily was unable to independently verify this information.

In a separate development, US-based investment firm Invesco, which holds a 2% stake in Swiggy, has revised the company’s valuation to $8.3 billion. This marks Invesco’s second upward adjustment in Swiggy’s valuation. The firm acquired the shares through a $190.5 million investment, an increase from the initial estimate of $147.6 million.

Also Read:

• Japan’s Fintech Sensation: SmartPay Secures $7M From SMBC Venture Capital
• A Rising Player Surfing the GPU Wave: How Inference.ai Plans to Become the “New AWS of the AI Era
• Ailytics Secures $2.7M Pre-Series A Funding Led by Tin Men Capital
• Singapore’s WasteX Partners with P4G to Spearhead Biochar Production Across Indonesia
• Born Ready and Catalyze Research Unite for Futureverse Fund