Swiggy Files for IPO, Targets $12-15 Billion Valuation with $500 Million Share Sale by Prosus

Sep 27, 2024, 03:48 AM

Swiggy, a prominent food delivery service, has filed draft papers for its initial public offering (IPO), targeting a valuation between $12-15 billion. The company aims to use the proceeds to expand its quick commerce operations, marketing, and business promotion costs. Swiggy's consolidated operating revenue surged 36% year-on-year in FY24 to Rs 11,247.4 crores, while net losses declined by 46% to INR 2,256 crores. However, the company's Q1FY25 performance showed a widening of losses by 8% to Rs 611 crores due to mounting expenses, which totaled Rs 3,908 crore. Swiggy's Instamart, with an annualized sales run rate of about $1.3 billion, has more dark stores than its competitor Zepto and operates 557 active dark stores, each generating Rs 4.8 lakh in gross order value per day. The IPO will include a major share sale by Prosus, expected to sell shares worth over $500 million, while retaining a 25% stake post-sale. Zomato, Swiggy's main competitor, currently holds a market capitalization of $30 billion. Swiggy reported over 112 million ever transacted users as of June 2024.