Food delivery company Swiggy changes registered name ahead of IPO

Swiggy is planning to file its draft red herring prospectus with the Securities and Exchange Board of India for its IPO in the next couple of days, aiming for an $11 billion IPO valuation target

Swiggy, which operated as Bundl Technologies Private Limited, has passed a special resolution to change its name to Swiggy Private Limited, as the food delivery giant gears up for a public market debut, according to sources.

The change in the name of the company will help the firm establish greater proximity and identification of the company’s corporate name with the company’s core brand, ‘Swiggy’, as per regulatory filings made with the Registrar of Companies (RoC).

The name change will be subject to the approval of the Registrar of Companies.

Swiggy is planning to file its draft red herring prospectus with the Securities and Exchange Board of India for its initial public offering (IPO) in the next couple of days, aiming for an $11 billion IPO valuation target.

The Bengaluru-based firm plans to raise an estimated $1 billion (Rs 8,300 crore) through the IPO this year. The company is targeting a valuation in the range of $10-11 billion, and it currently has approximately $800 million in cash from the previous funding round, according to sources.

The food delivery giant has been intensifying efforts to achieve profitability as it prepares for the IPO.

In 2022-23 (FY23), the company saw a 45 per cent increase in revenue, reaching Rs 8,625 crore. However, the net loss expanded to Rs 4,179 crore.

Swiggy’s largest expense in FY23 was purchases of stock in trade, rising by 48 per cent to Rs 3,302 crore. Employee benefits costs also climbed 25 per cent to Rs 2,130 crore.

Dineout, Swiggy’s restaurant technology platform acquired in 2022, contributed Rs 77.5 crore to revenue and incurred an operating loss of Rs 176 crore during the financial year.

Competitor Zomato reported a gross revenue jump of 68.9 per cent to Rs 7,079 crore in FY23, with losses declining to Rs 971 crore.

Swiggy recently appointed FMCG veteran Anand Kripalu as an independent director and the chairperson of its Board of Directors. He is expected to help Swiggy in its efforts for profitability and IPO plans. With close to 40 years of experience in the fast-moving consumer goods (FMCG) industry, Anand Kripalu is the Managing Director and Global Chief Executive Officer of EPL Limited (formerly Essel Propack Limited), the world's largest specialty packaging company.

Before that, Swiggy had also appointed three new independent directors on its board – Delhivery Managing Director and Chief Executive Officer Sahil Barua, Tractors and Farm Equipment Limited Managing Director and Chairman Mallika Srinivasan, and Shailesh Haribhakti & Associates Chairman Shailesh Haribhakti – last year. However, Srinivasan stepped down from the position of Swiggy’s independent director earlier this month.