Online food delivery platform Swiggy is going to increase the size of its Initial Public Offer i.e. IPO. The company is now planning to raise Rs 5,000 crore through the sale of new shares in the IPO. Earlier the size of this IPO was Rs 3,750 crore.
According to media reports, this plan of Swiggy is Rs 1,250 crore or $ 150 million more than its previous estimate. This increase shows that the company wants to strengthen itself further in the fast-growing market and competition.
Earlier, Swiggy had set a target of raising about $ 1.25 billion 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).
The size of the IPO will increase to $1.4 billion
However, now if the board approves the new proposal in its Extra Ordinary General Meeting (EGM) to be held on October 3, then the total size of the IPO will increase to $1.4 billion. No official statement has come from Swiggy on this news so far.
Swiggy wants to compete with Zomato and Blinkit
The purpose of this move of Swiggy is clear 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 intensified the competition by entering the quick commerce segment through Flipkart Minutes.
Swiggy’s revenue increased by 36% in FY 2024
Meanwhile, Swiggy’s financial condition has also improved. Swiggy’s revenue grew by 36% to Rs 11,247 crore in FY 2024 from Rs 8,265 crore in the previous financial year.
At the same time, the company also reduced its losses by 44% during this period and stood at Rs 2,350 crore in FY 2024 from Rs 4,179 crore in the previous year. The company has been helped in reducing 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 recorded a revenue of Rs 12,114 crore in FY 2024, while Swiggy’s revenue stood at Rs 11,247 crore. Similarly, Zomato posted a profit of Rs 351 crore, while Swiggy incurred a loss of Rs 2,350 crore.
