Swiggy considers raising IPO size to $1.4 b, expands Instamart

Food tech giant Swiggy is set to increase the size of its initial public offering (IPO) by raising additional capital through a fresh issue of shares.

Swiggy is considering increasing the fresh issue component of its initial public offering by ₹1,250 crore ($150 million) to ₹5,000 crore (about $600 million) from ₹3,750 crore (around $450 million), thus aiming to raise a total of up to $1.4 billion. The offer-for-sale component of the issue remains unchanged.

Initially, Swiggy was poised to raise $1.25 billion through its IPO, of which ₹3,750 crore (around $450 million) would be in fresh issue and up to ₹6,664 crore (around $800 million) as part of the offer-for-sale (OFS).

The company has scheduled the shareholder meeting for October 3 to obtain consent for its revised IPO plans. Besides the IPO, several secondary transactions have been happening, where new investors are joining Swiggy’s capitalisation table ahead of the company going public.

• Also read: IPO-bound Swiggy appoints former Flipkart VP Amitesh Jha as Instamart head

Financials

Swiggy’s revenue grew 36 per cent from ₹8,265 crore in FY23 to ₹11,247 crore in FY24. During the same period, its losses were down 44 per cent from ₹4,179 crore to ₹2,350 crore.

The company has also expanded its quick commerce business, Instamart, to reach 43 cities, up from 27 at the end of March. Over the past two months, the platform has launched operations in 11 new cities, including Thrissur, Mangalore, Kanpur, Udaipur, Warangal, Salem, Amritsar, Bhopal, Varanasi and Ludhiana.

In FY24, Instamart reported a 58 per cent increase in gross order value (GOV) to ₹8,100 crore, or nearly $1 billion. This comes at a time when Swiggy is also looking to use its IPO proceeds to expand Instamart.

While the densification of Swiggy Instamart’s store network in key metros and larger cities remains the dominant axis of expansion, these new markets are the flag-bearers of tomorrow’s growth, the company said in a statement.

In addition to its growing reach, Swiggy Instamart is enhancing its offerings by partnering with local brands and vendors, ensuring that customers have access to products that resonate with their regional preferences.

Swiggy Instamart plans to expand its service to more cities deepening its presence in tier 2 and 3 markets. To support this growth, Swiggy Instamart plans to expand its dark store network across existing and new cities, increasing its assortment to handle the rising demand and ensuring that every customer’s festive needs are met.