Swiggy gets shareholders nod for $1.2 billion initial public offering

Food delivery platform Swiggy has got an approval from its shareholders to go public. As per a regulatory filing, through the initial public offering, the food and grocery delivery platform is planning to raise up to Rs 3,750 crore ($450 million) in fresh capital, in addition to an offer-for-sale (OFS) component of up to Rs 6,664 crore ($800 million).

“...the consent and approval of the shareholders of the company be and is hereby according to create, issue, offer, allot and/or transfer of its equity shares up to an aggregate of Rs 37,501 million by way of a fresh issue of equity shares and an offer for sale of such number of equity shares up to an aggregate amount of Rs 66,640 million by certain existing shareholders…,” the filing read.

The special resolution was passed at an extraordinary general meeting (EGM) of Swiggy’s shareholders on April 23.

Swiggy IPO

As per The Economic Times, Swiggy is looking to shore up about Rs 750 crore from anchor investors in a pre-IPO round. The firm is yet to file its IPO documents with the country’s capital markets regulator Securities and Exchange Board of India (SEBI)

New age startups like Firstcry, Ola Electric, and Awfis are also planning to go public this year. Dutch listed Prosus is the largest shareholder in Swiggy with 33% stake followed by SoftBank. Other shareholders include Accel, Elevation Capital, Meituan, Norwest Venture Partners, Tencent, DST Global, Qatar Investment Authority, Coatue, Alpha Wave Global, Invesco, Hillhouse Capital Group and GIC.

Meanwhile, as per Tracxn, the company’s cofounders Sriharsha Majety, Nandan Reddy and Rahul Jaimini hold 4%, 1.6% and 1.2% stake, respectively. Jamini has left his operational role in 2020.

In an internal rejig on April 23, Majety and Reddy were appointed executive directors of the company. While Majety was named the managing director and group CEO, Reddy was named the whole time director and head of innovation

Also watch: Ahead of IPO plans, Swiggy records $200 million loss: Report