IPO-bound foodtech company Swiggy’s losses have expanded by 8 per cent to ₹611 crore in Q1FY25 from ₹564 crore a year ago on mounting expenses, updated draft red herring prospectus (DRHP) showed.
In the same period, the company’s revenue from operations stood at ₹3,222.2 crore, up by 35 per cent from ₹2,389.8 crore recorded in the corresponding period of the previous year.
The expenses during this period stood at ₹3,908 crore up 27 per cent from ₹3,073 crore spent during the corresponding period last fiscal.
On a full year basis, Swiggy’s losses were down 44 per cent to ₹2,350 crore in FY24 from ₹4,179 crore in FY23 while its revenue grew 36 per cent to ₹11,247 crore in FY24 from ₹8,265 crore.
Swiggy Instamart, the company’s quick commerce arm, recorded a revenue of ₹374 crore (up 108 per cent) in Q1FY25.
On Thursday, Swiggy filed draft red herring prospectus (DRHP) with the markets regulator, SEBI. The company is planning to raise ₹3,750 crore via fresh issue and an offer for sale of up to 18.52 crore shares i.e., around ₹6,664 crore (comprising 18.53 crore shares), totalling to an IPO size of ₹10,414 crore or $1.25 billion.
The size of the IPO is likely to increase by ₹1,250 crore, or $150 million, taking the total to ₹Rs 11,664 crore or $1.4 billion. The decision will be taken at the company’s extraordinary general meeting (EGM) on October 3.
Fund utilisation
The proceeds from the fresh issue of the IPO will be utilised for investment in its material subsidiary, Scootsy, for repayment or prepayment, in full or in part, of certain or all of its borrowings, as well as for the expansion of the dark Store network for the quick commerce segment through the setting up of dark stores and making lease/licence payments for dark stores.
Swiggy will use the proceeds to invest in technology and cloud infrastructure, brand marketing, and business promotion expenses, enhancing the platform’s brand awareness and visibility across segments and funding inorganic growth through unidentified acquisitions.
Swiggy’s early investors, including Accel, Apoletto Asia, Alpha Wave, Coatue PE Asia, Elevation Capital, DST EuroAsia, Norwest Venture Partners, and Tencent Cloud Europe, will sell part of their stakes through the offer-for-sale option.