Why Is Swiggy No Longer a Private Company? What's Swiggy's IPO Date?

Swiggy, the on-demand convenience platform, is gearing up for a significant transformation as it prepares to launch its Initial Public Offering (IPO) later this year. As part of this strategic move, the company has officially changed its name to Swiggy Limited, signifying its transition into a public company, according to documents submitted by the firm with the Registrar of Companies. This step, disclosed in filings with the Ministry of Corporate Affairs, underscores Swiggy's commitment to transparency and growth in the evolving global market landscape.

Swiggy's Name Change: Strengthening Corporate Identity

In a recent resolution filed with the Registrar of Companies, Swiggy revealed its decision to change its name from Bundl Technologies to Swiggy Private Limited. This renaming aligns the company's corporate identity more closely with its well-established brand, 'Swiggy.' The adjustment comes in preparation for its ambitious plans to raise up to USD 1 billion from the IPO, with the company aiming to bolster its market presence and investor appeal.

Swiggy's IPO Preparation: Filing the Draft Red Herring Prospectus (DRHP)

Swiggy's IPO ambitions are gaining momentum, with preparations underway to file the Draft Red Herring Prospectus (DRHP) outlining the objectives of the offer. Anticipated to be submitted in the coming months, this document will provide potential investors with crucial insights into Swiggy's financials, business model, and growth strategies. The IPO, slated for later this year (2024), is poised to be a significant event in the company's journey and the broader market landscape.

Market Trends and Investor Sentiment on Swiggy's IPO

Swiggy's decision to go public aligns with prevailing trends observed in the industry, where several prominent brands have already made their mark on the public markets. Companies like FirstCry and Ola Electric have successfully listed on the bourses, indicating a growing appetite for new-age ventures among investors. Despite macroeconomic uncertainties, particularly in the wake of global challenges, these companies are forging ahead, demonstrating resilience and confidence in their growth trajectories.

Swiggy's Financial Report Card

Swiggy, the Indian food delivery giant, reported a staggering USD 200 million loss for the nine-month period ending December 2023, as disclosed in an internal document of the company. 

For the fiscal year 2022-23, Swiggy incurred a significant loss of 41.8 billion rupees (USD 500 million), according to the internal document.

Swiggy's losses amounted to 17.3 billion rupees (USD 207 million) during the initial nine months of the fiscal year 2023-24, spanning from April to December 2023. This financial setback occurred despite generating a revenue of USD 1.02 billion during the same period. Comparatively, the revenue for the fiscal year 2022-23 stood at USD 1.05 billion, as per the document's findings.

Invesco Boosts Swiggy's Valuation Ahead of IPO

According to regulatory filings, Invesco, a US-based asset management company, has increased Swiggy's valuation by 19% to USD 12.7 billion in anticipation of its upcoming IPO. Invesco previously led a USD 700-million round in January 2022, valuing Swiggy at USD 10.7 billion. This marks the third consecutive increase in Swiggy's valuation by Invesco, which last adjusted it to USD 8.3 billion in October 2023 following several reductions. Swiggy’s valuation now stands closer to that of its rival Zomato. 

Wave of Innovation and Growth

The recent public debut of Honasa Consumer, the parent company of popular brands Mamaearth and Aqualogica, further underscores the momentum in the sector. By venturing into the public market in November, Honasa Consumer signaled a wave of innovation and growth, highlighting the potential for new-age companies to thrive despite the prevailing economic backdrop. This trend bodes well for Swiggy as it positions itself for its IPO, tapping into investor sentiment favoring innovative and disruptive businesses.

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