Swiggy, the food delivery giant, is making headlines as it prepares to launch one of India’s most significant initial public offerings (IPOs) in the tech-driven food delivery sector. The company has already taken steps to increase its IPO size, signaling investor interest and strong growth prospects. Swiggy’s public market debut is anticipated to raise a substantial amount, with provisions for additional capital to be injected, making this a pivotal moment for the company and the Indian tech ecosystem.

Increase in IPO Size Approved by Shareholders

IPO Size Increase from ₹3,750 crore to ₹5,000 crore
At an extraordinary general meeting held on October 3, Swiggy’s shareholders approved the decision to increase the primary issue size of the IPO from ₹3,750 crore to ₹5,000 crore. This increase allows Swiggy to raise an additional ₹1,250 crore through the IPO, reflecting the company’s ambition to capitalize on its market position and growing revenues. This move strengthens Swiggy’s position in what is expected to be one of the largest IPOs in India’s tech space.

Unchanged Offer for Sale Component
While the size of the primary issue has increased, the offer for sale (OFS) component remains unchanged, estimated at ₹6,664 crore. The OFS will see corporate shareholders divesting 18.52 lakh shares, including key investors such as Accel India IV (Mauritius), Coatue PE Asia, and Tencent Cloud Europe. This aligns with the overall IPO structure and provides an opportunity for early backers to realize returns on their investments.

IPO Size and Market Impact

Potential IPO Size of ₹11,664 crore
With the additional funds raised, Swiggy’s IPO could reach ₹11,664 crore (approximately $1.4 billion), making it one of the most prominent IPOs in recent times. This would be a significant event for the Indian stock market, especially within the new-age tech and digital services sectors. Swiggy’s public offering is part of a broader trend of tech startups pursuing IPOs, reflecting their evolving business models and readiness for public investment.

Financial Performance and Growth

Revenue Growth and Loss Reduction
Swiggy’s financial performance has shown marked improvement in 2023-24, with revenue from operations growing 36% to ₹11,247 crore from the previous year’s ₹8,265 crore. In tandem with its revenue growth, the company has managed to reduce its losses by 44%, from ₹4,179 crore to ₹2,350 crore, thanks to better cost management and operational efficiencies. These financial indicators suggest Swiggy is on a solid path toward profitability, which is crucial for investor confidence ahead of its IPO.

Quarterly Financial Performance
In the April-June quarter of the current fiscal year, Swiggy reported ₹3,222 crore in revenue, reflecting a 35% increase over the same period last year. These figures underscore the company's ability to sustain growth, even amid challenging market conditions, further reinforcing its attractiveness to prospective investors.

Utilization of IPO Proceeds

Debt Repayment and Strategic Investments
Swiggy’s draft prospectus outlines plans to allocate the IPO proceeds toward repayment of borrowings and investment in Scootsy, a subsidiary focused on hyper-local deliveries. In addition, Swiggy intends to expand its dark store network—a key component of its quick commerce strategy—and invest in enhancing its technology and cloud infrastructure. These initiatives are aimed at bolstering Swiggy’s operational capacity and enabling it to stay ahead of competitors in the fast-evolving food tech landscape.

Launch of 10-Minute Delivery Service Bolt

In a bid to further enhance customer convenience, Swiggy recently announced the launch of Bolt, its 10-minute delivery service for meals and beverages. This initiative highlights the company’s focus on quick commerce, an emerging segment that promises to drive future growth. The ability to offer near-instantaneous deliveries of food and beverages is a competitive differentiator that Swiggy hopes will resonate with time-conscious consumers.

Other IPOs on the Horizon

Swiggy’s IPO is part of a larger wave of public offerings across various sectors. On Monday, companies such as Vikram Solar, Aditya Infotech, and Varindera Constructions filed their IPO papers, collectively seeking to raise ₹8,000 crore. These diverse IPOs represent a robust pipeline of market activity, offering opportunities for investors across multiple industries.

In conclusion, Swiggy’s IPO is poised to be a landmark event in India’s financial markets. With its strong revenue growth, improving profitability, and strategic investments, the company is well-positioned for a successful public listing. Investors will be closely watching as Swiggy prepares to go public, signaling a new chapter in its growth journey.