Swiggy Files Confidential Draft Papers With SEBI For IPO

Bengaluru-based food delivery major Swiggy has reportedly filed for an initial public offering (IPO) via confidential pre-filing route with the Securities and Exchange Board of India (SEBI).

The development comes a day after Swiggy received approval from its shareholders for IPO worth INR 10,414.1 Cr ($1.2 Bn).

The startup’s IPO offer will include fresh issue of shares worth INR 3,750.1 Cr (about $449 Mn) and an offer-for-sale component worth INR 6,664 Cr (around $799 Mn), as per regulatory filings.  

While Monecontrol reported about Swiggy’s confidential papers filing for its IPO, the company has denied the matter.

It is pertinent to note that last year, hospitality major OYO also took a confidential pre-filing route to refile for its IPO with the SEBI. As per SEBI’s latest notification on draft IPO papers, the startup’s IPO is still in its pre-filing stage after a year.

The confidential pre-filing route allows companies more time and flexibility to plan for going public. It also allows them to change the primary issue size by 50% till an updated DRHP is filed with the SEBI. 

Unlike the traditional route of filing the draft offer documents for an IPO, the details of the IPO in case of a pre-filing are not available publicly. 

Additionally, unlike the traditional IPO filing method, where companies are required to float their IPO within 12 months of the SEBI nod, the confidential filing allows companies to float their IPO within 18 months of SEBI’s final comments. 

Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli and Rahul Jaimini (who left the company in 2020), Swiggy started solely as a food delivery startup. Later, it launched its quick commerce vertical – Swiggy Instamart. It also offers a courier service, Swiggy Genie.

Ahead of its IPO, Swiggy recently integrated Swiggy Mall, which sold a wide range of non-grocery items like footwear and electronics items, with its quick commerce offering, Instamart.

As part of its IPO preparations, the company also appointed Anand Kripalu as an independent director and the chairperson of its boards in December last year. 

Swiggy’s IPO is the biggest and most anticipated one in 2024 – a year that is expected to see at least 10 startups taking the public route.

Swiggy posted a net loss of INR 4,179.3 Cr in FY23, which widened 15% year-on-year. 

Inc42 recently reported that the decacorn was on track to report about INR 10K Cr in revenue for FY24, helped by the surge in its Instamart orders, platform fees related to food delivery, and growing traction for dining out business.