Online food delivery platform Swiggy receives shareholders' approval for $1.2 billion IPO

Swiggy, a food aggregating platform, that is building AI-led solutions to streamline its food delivery, has received its shareholders' approval to file for an initial public offering (IPO) of $1.2 billion this year, as per a regulatory filing.

The company plans to raise up to Rs 3,750 crore through a fresh issue and around Rs 6,664 crore via an offer-for-sale (OFS), it said.

The regulatory filing, prepared after the extraordinary general meeting (EGM) of Swiggy on April 23, read that "the consent and approval of the shareholders of the company be and is hereby accorded to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of Rs 37,501 million by the way of a fresh issue of equity shares up to an aggregate amount of Rs 66,640 million by certain existing shareholders (OFS)".

Swiggy did not immediately comment.

Prosus, one of the key investors in the online food delivery platform, has around 32 per cent stake in Swiggy while SoftBank has around 8 per cent stake while VC firms Accel 6.2 per cent and Elevation Capital 4.4 per cent, according to Tracxn, a leading market intelligence platform.

Last month, US-based Baron Capital increased IPO-bound Swiggy's valuation to $12.16 billion, higher than the $10.7 billion post-money valuation at which the company secured funding in early 2022.

Earlier this year, US-based investment company Invesco raised Swiggy's valuation to about $8.3 billion.

The online food delivery platform's net losses expanded to reach Rs 4,179 crore in the financial year ended March 31, 2023.

Two days back (on April 23), on-demand convenience platform Swiggy launched ‘Smart Links’ — a tool to help restaurants of all sizes enhance their online presence and drive growth. Through this feature restaurants will receive free, customized links that they can share on their social media profiles on platforms like WhatsApp, Instagram, and Facebook to direct customers straight to their menu page on Swiggy. 

Earlier, the company introduced 'Paw-ternity' policy to support employees on pet care. Read more here

Also Read: Online food delivery platform Swiggy to buy back ESOPs worth $50 million

With agency inputs