After Big B’s family office, Hindustan Composites invests in Swiggy

Auto Ancillary firm Hindustan Composite has acquired a minority stake in IPO-bound online food delivery company Swiggy. The development comes days after Amitabh Bachchan's family office picked up a minority stake in the Bengaluru-based company.

Hindustan Composite's board has reached an agreement with Swiggy to acquire 1,50,000 equity shares, resulting in an investment of Rs 5.17 crore, according to a disclosure made through the National Stock Exchange (NSE).

The net worth of Swiggy stood at Rs 9,810 crore or $1.18 billion as of March 2023, the filing further added. Hindustan Composite plans to finalize this minor acquisition by November 30, 2024, with the intention of securing both short-term and long-term benefits.

Swiggy reportedly filed IPO papers via a confidential route in May. The firm will raise up to Rs 3,750 crore ($450 million) via a fresh issue of equity shares and an offer for sale of up to an aggregate amount of Rs 6,664 crore ($800 million) in its initial public offering. As per media reports, the firm will soon file draft IPO papers with SEBI.

Ahead of the IPO, Swiggy also rolled out its fifth ESOP liquidity programme worth $65 million in July. It claims to have enabled over Rs 1,000 Cr of ESOPs liquidity over the five events which benefited 3,200 employees.

The Prosus-backed firm also beefed up its leadership team last month with appointments of new chief executive officer (CEO) and chief operating officer (COO).

Swiggy’s revenue stood at Rs 5,476 crore in the first three quarters of FY24 with Rs 1,600 crore loss. It’s yet to file audited results for FY24.

Swiggy’s rival Zomato is currently valued at $28.3 billion, as per stock exchange data. The Deepinder Goyal-led firm posted Rs 4,206 crore in revenue with Rs 253 crore in profits in the first quarter of FY24.