Swiggy early investors to pocket gains ranging between 3x and 35x

Norwest Venture, which invested in Swiggy's Series B round in 2015, will make gains of up to 26 times, with an acquisition cost of Rs 14.82 per share

Food delivery aggregator Swiggy’s early investors will see returns as high as up to 35x as the company lists on the Indian bourses.

 

According to the draft red herring prospectus (DRHP), early backers of the company will see gains in the range of 3x-35x.

 

“Early investors are making anywhere between 25 and 35 times returns. That is, if you look at the weighted average cost of their acquisition. Some of them may look at taking some of the chips off the table. Some earlier investors like Accel reinvested in our latest round through their other fund,” said Raul Bothra, chief financial officer (CFO), Swiggy.

 

He was responding to the question why some investors have not opted to exit during the initial public offering (IPO).

 

Accel India, one of the early backers of the company, and which is offloading shares worth Rs 412 crore, will see a gain of 34.9 times. The acquisition cost for Accel when it invested in Swiggy was Rs 11.17 per share.

 

Similarly, Elevation Capital will witness 34 times gain for its investment in the company, where the acquisition cost was Rs 11.44 per share.

 

 Norwest Venture, which had invested in Swiggy in its Series B round in 2015, will make gains up to 26 times. Its acquisition cost of Swiggy’s share was Rs 14.82.

 

Prosus, the company’s largest shareholder, also reduced the number of shares it is selling, as Swiggy increased the primary issue offer.

 

Prosus’ total shareholding in the company is 30.95 per cent, and the firm is selling 109.1 million shares. This is down from the earlier 118.2 million shares.