 "Swiggy files for IPO, aims to raise Rs 3,750 crore through fresh issue")
Food aggregator and grocery delivery platform Swiggy on Thursday filed draft red herring prospectus (DRHP) with the markets regulator, SEBI. The company is planning to raise Rs 3,750 crore via fresh issue.
The IPO is a combination of fresh issue and offer-for-sale of 185,286,265 shares by existing investors. Many investors including Accel, Tencent, Elevation Capital, Norwest Venture are selling some of their shares.
Sources, however, said that the company may take a decision to upsize the fresh issue component by another Rs 5,000 crore. Taking the total fresh issue component up to Rs 11,600 crore. The company will take this decision in an EGM expected to be held in the first week of October.
According to the DRHP the proceeds of the IPO will be used for investment in its subsidiary Scootsy, for expansion of its dark store network for its quick commerce segment, setting up dark stores, investment in technology and cloud infrastructure and funding its inorganic growth.
The company has reached a milestone of 112.7 million transacted users as of June 2024. It’s average monthly order frequency for the three months ended June 30, 2024 and 2023, and in financial years 2024, 2023 and 2022 was 4.50 times, 4.42 times, 4.48 times, 4.34 times and 4.14 times respectively.
Swiggy’s consolidated operating revenue for FY24 was at Rs 11,247.4 crore, which grew 36 per cent YoY. While losses have halved during the same period. Q1FY25 consolidated B2C gross order value (GOV) was at Rs 10,189.5 crore.
Net loss declined by 46 per cent to Rs 2,256 crore in FY24. Net loss for FY23 was at Rs 4,192 crore.
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The food delivery business reported Q1FY25 consolidated B2C GOV at Rs 10,189.58 crore.
Its food delivery services are available in 681 cities, Instamart (quick commerce) in 32 cities, Dineout in 52 cities and Genie in 69 cities.
When it comes to its quick commerce segment, Instamart, the company said that it is expanding its dark stores footprint. In Q1FY25 alone the company opened 59 new dark stores.
For FY24 the GoV for Instamart was Rs 8068.5 crore, up 57.6 per cent YoY. For the Q1 FY25 the GoV was at Rs 2,724 crore. Annualised GoV of $1.3 billion in Q1 FY25, which is already 40 per cent of the Food Delivery. The average delivery time in the month of June 2024 was 12.5 minutes.
As on June 30, 2024, Instamart operated a large network of 557 Active Dark Stores across 32 cities in India, and as of September 10, 2024, Instamart operated a network of 605 Active Dark Stores across 43 cities in India.