Ahead of Its anticipated IPO debut mid-2024, Swiggy has officially transitioned its name from ‘Swiggy Private Limited’ to ’Swiggy Limited’, now a ‘Public Company’, according to documents filed with the Registrar of Companies. This was first reported by News portal Entrackr.
Swiggy stated in a regulatory filing that it would be able to raise money from the public, including through an IPO, as a result of the planned conversion of the business from private limited to public limited.
Swiggy, founded in 2014 joins the trend of new-age internet companies in India aiming for listings on public stock exchanges reflecting the growing interest in Dalal Street debuts. The companies like Ola Electric, FirstCry, Awfis, and Honasa Consumer (the parent company of Mamaearth) filed their draft IPO papers in recent months. Honasa Consumer went public in November.
Swiggy IPO Preparation
In February 2023, The Food Giant’s name had previously transitioned from Bundl Technologies Pvt Ltd, to Swiggy Pvt Ltd, for a strong brand identity as it would be easy to identify the corporate with its core brand ‘Swiggy’, and it aligned more closely with its primary business of food delivery. Swiggy is gearing up to get listed on the stock exchanges in mid-2024, expected to submit a draft red herring prospectus in the upcoming months, with intentions to proceed with a $1 billion initial public offering of shares by the end of 2024. Its main rival Zomato made a stellar IPO debut in 2021.
Ahead of its IPO listing, Swiggy is reportedly prioritising improving its financial performance and reducing cash burn, especially within its quick-commerce division, Instamart, in order to show prospective investors that the company can achieve profitability.
However, Reports indicate that Swiggy lost $207 million during the nine months that ended in December 2023 despite earning $1.02 billion in revenue. Swiggy reportedly had a $501 million net loss on $992 million in operating revenue for the fiscal year 2023.
The foodTech company had previously strategized to cut off its workforce by 6%, impacting 350-400 jobs, mostly in corporate functions, call centres, and technology departments. This action was taken as a part of a cost-cutting program to save money.
Moreover, Suparna Mitra, the former head of Titan's watch and wearables division, was recently appointed as an independent director by Swiggy, the most recent in a string of strategic appointments made in advance of the company's IPO. This decision was made in response to Mallika Srinivasan's resignation in February. Srinivasan was an independent director on the Swiggy board.
(Inputs from Economic Times)
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