Earlier this year, Invesco, a US-based asset management company, also increased Swiggy’s valuation to $8.3 billion. As of October 2023, Invesco had increased the valuation of the food technology platform by approximately 42%, to approximately $7.85 billion.
Swiggy was valued at $10.7 billion when it raised $700 million in early 2022.
Food and grocery delivery giant Swiggy filed its much-anticipated initial public offering (IPO) through the confidential route in early May. The Bengaluru-based startup has shareholder approval to raise ₹10,414 crore ($1.2 billion), of which shares worth ₹3,750 crore will be a fresh issue and the remaining ₹6,664 crore will be sold by existing investors. Norwest Venture, one of Swiggy’s investors, confirmed the filing in an interview with CNBC-TV18. “This is an anticipated IPO, and it’s a household name. I’m waiting for this blockbuster to come out,” Niren Shah, managing director and head of India at Norwest Venture Partners, told CNBC -TV18.
The decade-old startup is now awaiting approval from the market regulator, namely the Securities and Exchange Board of India (SEBI).
The company’s co-founders Sriharsha Majety, Nandan Reddy and Rahul Jaimini hold 4%, 1.6% and 1.2% stake, respectively, according to Tracxn. Jaimini left his operational role in 2020 to join another company: Pesto Tech. At the EGM on April 23, Majety and Reddy were appointed as executive directors of the company. Majety has been appointed managing director and group CEO, while Reddy has been appointed as whole-time director and head of innovation.
Swiggy’s food delivery business had become profitable last year and in 2024, Majety had told CNBC-TV18 at WEF that the focus would be on profitable growth and improvement. He emphasized that Swiggy is still in its early stages and learning what works for consumers. “Just because you can define a category doesn’t mean consumers want it. All of us in this space are iterating, learning from each other, learning from consumers,” he said.
It took nearly a decade for the company’s first venture, the food delivery unit, to become profitable. The decacorn reported a revenue of ₹8,265 crore in FY23. Over 82% of the revenue came from food delivery and the rest from the quick commerce business called Instamart.
The company’s main objective is to become profitable and for this, it has improved its EBITDA margins which recorded -1.9% and -109.5% for the food delivery sector and Instamart respectively in during the nine-month period, compared to -17.5% and -259% during FY23.
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