Swiggy raises over $600 Mn from anchor investors ahead of listing

Foodtech major Swiggy has raised around $605 million (Rs 5,085 crore) from over 75 anchor investors ahead of its highly anticipated initial public offering (IPO). The Bengaluru-based firm is scheduled to open its IPO on Wednesday, November 6.

On Tuesday, Swiggy announced the fundraise through a stock exchange filing. “Trading Members of the Exchange are hereby informed that, under the Anchor Investors (AIs) portion in the Public Issue of Swiggy Limited, 13,03,85,211 equity shares have been subscribed today at Rs. 390 per equity share,” the filing read.

According to media reports, investors such as BlackRock, Fidelity, SBI Mutual Fund, ICICI Prudential Mutual Fund, HSBC, Nomura, BNP Paribas, and Allianz Global have participated in the anchor round.

Swiggy is targeting an $11.3 billion valuation in its IPO. While it increased the size of the fresh issue by 20% to Rs 4,499 crore, the valuation was reduced from its initial plan of $12-15 billion. 

Also Read: Meituan sells over $200 Mn worth stake in Swiggy

The public listing will also provide a hefty return to Swiggy’s early backers such as Prosus, Accel, Elevation and Norwest. The company’s co-founders Sriharsha Majety, Rahul Jaimini and Nandan Reddy will also sell a portion of their stakes.

Swiggy reported a 36% increase in revenue to Rs 11,247 crore in FY24 from Rs 8,265 crore in FY23. It also narrowed losses by 44% to Rs 2,350 crore during the same period.

Swiggy will become the second foodtech firm from the Indian startup ecosystem to be listed on the stock exchange, following Zomato. The Deepinder Goyal-led company went public in July 2021, and its current market capitalization is around $25.84 billion, which is almost 2.3 times Swiggy’s anticipated valuation.