Zomato rival Swiggy changes its registered name ahead of IPO launch: Report

Zomato rival Swiggy, previously known as Bundl Technologies Private Limited, has reportedly passed a special resolution to change its name to Swiggy Private Limited. 

According to multiple media reports, The decision is aimed at aligning the company's corporate identity more closely with its popular brand. The report comes as the food delivery giant prepares for its public market debut. 

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

Preparing for the IPO launch

Swiggy is reportedly on the brink of filing its draft red herring prospectus with the Securities and Exchange Board of India for the IPO valuation with a target of $11 billion. The company plans to raise around $1 billion (Rs 8,300 crore) through the IPO. 

Despite reporting a net loss of Rs 4,179 crore in FY23, Swiggy has shown a remarkable 45% increase in revenue, reaching Rs 8,625 crore or over $1 billion. 

As Swiggy continues to experience revenue growth, the company's total expenses have also surged by 34% to Rs 12,884 crore in FY23. Major expense categories include the purchase of stock-in-trade, advertising, and promotional expenses.

Notably, Swiggy's marketing expenditures climbed to Rs 2,362 crore, representing 28% of its operating revenue. Additionally, employee benefit expenses rose to Rs 2,130 crore.

Optimizing for profitability

In anticipation of its IPO, Swiggy has undertaken several operational adjustments, including a workforce reduction that impacts 350-400 positions across technology, call centres, and corporate functions.

These measures are part of the company's focus on achieving profitability and optimizing costs.

It's worth mentioning that the company's recent appointment of industry veteran Anand Kripalu as the chairperson of the Board of Directors, along with other key board appointments, signals its intent to bolster its leadership team in preparation for the IPO.

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