Prosus, Accel And Elevation Capital Selling Shares In Swiggy Ahead Of Its IPO

Ahead of its initial public offering (IPO), Swiggy’s early backers are reportedly selling shares and partly diluting their stakes in the foodtech company.

As per Moneycontrol’s report, citing sources close to the matter, these shares are being bought by new investors who are optimistic about the foodtech giant’s growth potential.

Prosus, Accel and Elevation Capital are among the early investors to be selling their shares in Swiggy.

The report further added that wealth management service providers, including 360 ONE, a host of high net-worth individuals (HNIs) and others are picking up stakes in the company.

Notably, Prosus has poured in more than $7 Bn into Indian startups so far, according to data from Inc42 and Tracxn, mostly through large ticket sizes and investments in unicorns, including Swiggy among others. 

Accel Partners also started its investment journey with Swiggy in 2015, with a $1 Mn seed funding round.

Investors and bankers are buying and selling Swiggy’s shares at INR 330-350 apiece in the secondary deal which values the company at $9.3 Bn, the report said.

Secondary buyout or secondary transaction refers to the sale of shares from the existing investor to another private equity firm or financial institution. At the end of the sale, the seller’s hold and involvement in the company will not be significant.

“During its conversations over the past few weeks, Swiggy has expressed confidence of listing with a market capitalisation/valuation of around $10-13 Bn,” a source was quoted saying to Moneycontrol.

Last month, US-based asset manager Baron Capital marked up the fair value of its investment in food and grocery delivery platform Swiggy, thereby pushing up the startup’s valuation to $15.1 Bn as of March 31, 2024.

As per one of the Inc42’s reports,the food delivery and quick commerce decacorn is on track to report close to INR 10K Cr in revenue for FY24, riding on the surge in Instamart orders, platform fees related to food delivery and growing traction for its dining out business.

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