Zomato rival Swiggy turns into a public company ahead of IPO launch

Food delivery company Swiggy, which competes with the listed Zomato, has transitioned into a public company, as per the resolution passed by the board of directors with the Registrar of Companies.

The transition signifies Swiggy's serious intent toward launching an Initial Public Offering (IPO) in the latter half of the year, Entrackr reported.

Previously known as Swiggy Private Limited, the company's holding name has now been changed to Swiggy Limited, following a prior name change from Bundl Technologies Private Limited to Swiggy Private Limited in February.

Earlier, Swiggy said that the change aims to align the corporate name with its core brand identity.

Preparation for IPO launch

According to multiple media reports, Swiggy has been preparing for its public listing for some time and plans to file IPO papers shortly. The Bengaluru-based food delivery company aims for a valuation between $12 billion and $15 billion, approximately 61.3% of Zomato's current market cap of $22 billion.

Last week, The company announced the appointment of Suparna Mitra as an independent director. Suparna is the CEO of Titan Company Limited's Watches and Wearables Division. 

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.

What is the current valuation of Swiggy?

While Swiggy has witnessed valuation declines several times from its investors, the US-based asset management firm Baron Capital recently adjusted Swiggy's valuation to $12.1 billion, up from $10.7 billion.