Swiggy submits revised IPO draft papers to Sebi, aims to raise over Rs 10,000 crore

NEW DELHI: Swiggy on Thursday submitted its revised draft papers to market regulator Sebi for its highly anticipated initial public offering (IPO), which includes a fresh issue of equity shares amounting to Rs 3,750 crore and an offer-for-sale (OFS) of 18.52 crore equity shares by existing shareholders, as mentioned in the updated draft red herring prospectus (UDRHP).
Industry sources estimate that the food and grocery platform’s IPO size will exceed Rs 10,000 crore with the offer-for-sale component reaching up to Rs 6,664 crore.
The existing shareholders participating in the OFS include Accel India IV (Mauritius) Ltd, Apoletto Asia Ltd, Alpha Wave Ventures, LP, Coatue PE Asia XI LLC, DST EuroAsia V BV, Elevation Capital V Ltd, Inspired Elite Investments Ltd, MIH India Food Holdings BV, Norwest Venture Partners VII-A Mauritius, and Tencent Cloud Europe BV.
Additionally, the Bengaluru-based company is exploring the possibility of raising funds through a pre-IPO round. If successful, the size of the fresh issue will be adjusted accordingly.
According to the IPO documents, Rs 137.41 crore from the fresh issue will be utilized to repay the debt of Swiggy’s subsidiary, Scootsy.
Furthermore, Swiggy will invest Rs 982.40 crore in Scootsy to expand the Dark Store network in the quick commerce segment, Out of which Rs 559.10 crore will be allocated for setting up Dark Stores and Rs 423.30 crore for lease or license payments.
The company also plans to allocate Rs 586.20 crore for technology and cloud infrastructure enhancements, Rs 929.50 crore for brand marketing and business promotion initiatives, and additional funds for inorganic growth opportunities and general corporate purposes.
The updated draft filing follows the approval of Swiggy’s confidential offer document by the market regulator earlier this week which it submitted on April 30 through the confidential pre-filing route.
Under the confidential filing process, Sebi reviews the confidential DRHP and provides feedback. Later, the company is required to file an update to the confidential DRHP (UDRHP-I), incorporating the regulator’s comments which is then made available for public comments for a period of 21 days.
Lastly, after addressing the changes resulting from public comments, the company is required to update the DRHP-II (UDRHP-II).
Established in 2014, Swiggy’s valuation reached nearly $13 billion in April, according to Tracxn, a global startup data platform. The company’s annual revenue amounted to $1.09 billion as of March 31, 2023, and it currently employs more than 4,700 individuals.