Swiggy to file DRHP with SEBI for $1.3 billion IPO by September first week: Report

Zomato's rival Swiggy is reportedly set to file its Draft Red Herring Prospectus (DRHP) with SEBI to raise approximately Rs 10,400 crore (around $1.28 billion) through an IPO.

According to a report by YourStory, the food delivery major is expected to file the DRHP as early as the first week of September 2024.

At what valuation?

The report further mentioned that Swiggy aims to get listed by the current financial year (FY25) and is targeting a valuation of $15-$17 billion.

This targeted valuation is approximately 60% of Zomato's total market capitalization. According to data available on the NSE (as of Tuesday), the Deepinder Goyal-led company has a total market cap of Rs 2.3 lakh crore.

Transition to a public limited company

In April this year, Swiggy reportedly converted from Swiggy Private Limited to Swiggy Limited as part of its preparation for the IPO launch.

In February, the Sriharsha Majety-led company changed its name from Bundl Technologies to Swiggy Private Limited.

How well is Swiggy performing financially?

Despite Swiggy's claim that its food delivery business is becoming profitable as of March 2023, the company has faced significant financial losses.

For the financial year 2023, Swiggy reported a loss of Rs 4,179 crore. However, it has shown some revenue growth, recording Rs 5,476 crore from operations during the first three quarters of the financial year 2024, alongside a loss of approximately Rs 1,600 crore ($200 million) for the same period, according to Entrackr.