Swiggy gears up for IPO
About Swiggy's recent move to convert to a public limited company ahead of their IPO. They plan to raise a whopping $1 billion through this process. As part of this transition, Swiggy's holding company has been renamed 'Swiggy Limited', replacing the previous name of 'Swiggy Private Limited'. This change signals their entry into the public market as a publicly-traded entity. Sources suggest that Swiggy is likely to file its draft red herring prospectus soon, in the coming months.
According to The Economic Times, the food delivery and quick-commerce platform has converted itself from a private limited company to a public limited company, as it prepares for an upcoming initial public offering (IPO) later this year. The company's holding company has also been renamed to 'Swiggy Limited', indicating its transition to a publicly-traded entity. The report suggests that Swiggy is planning to file its draft red herring prospectus in the coming months and aims to raise about $1 billion through the IPO towards the end of 2024.
Swiggy IPO: A broader trend
It's interesting to note that more and more new-age internet companies in India are seeking to go public, and Swiggy's decision to do so seems to follow this trend. In fact, several other firms like Ola Electric, FirstCry, Awfis, and Honasa Consumer (parent company of Mamaearth) have also filed their draft IPO papers in recent months. It's also worth mentioning that Swiggy had previously changed its registered name from ‘Bundl Technologies Pvt Ltd’ to ‘Swiggy Pvt Ltd’ back in February 2023. This move was aimed at creating a stronger brand identity and association with its core business of food delivery.
Focus on Financials
It seems that Swiggy is taking steps to improve their financial performance and minimize cash burn in its quick-commerce division, Instamart, before filing IPO documents. According to reports, the company recorded a loss of $207 million on a revenue of $1.02 billion for the nine months ending December 2023. In the previous fiscal year, Swiggy had a net loss of $501 million on operating revenue of $992 million.
