Looking forward to Swiggy IPO? All you need to know before making the order

Swiggy plans to use IPO proceeds to repay debts and expand Instamart. Key allocations include ₹982 crore for Instamart and ₹930 crore for marketing.

The Securities and Exchange Board of India (Sebi) approved Swiggy’s updated draft red herring prospectus (DRHP) for one of the largest new-age initial public offerings (IPOs). The Swiggy IPO is among the country's top public offers this year. For those who wish to invest in the IPO, here's all you need to know:

Swiggy IPO: The Securities and Exchange Board of India has approved Swiggy's updated draft red herring prospectus for a major IPO aiming to raise ₹3,750 crore, contributing to a total size of ₹10,414 crore.

1. Swiggy IPO size: The food delivery platform is planning to raise ₹3,750 crore by issuing fresh shares. In the IPO, existing holders, including Prosus and Accel India, are expected to sell around 18.53 crore shares. The offer-for-sale (OFS) component is ₹6,664 crore and the total IPO size is ₹10,414 crore.

2. Swiggy IPO objectives: Net proceeds from the IPO will be used by the company to repay debts, expand Instamart and spend on marketing to create brand awareness, it said in its DRHP. The company said that ₹982 crore will go towards the expansion of Instamart, ₹930 crore for brand marketing and business promotion expenses, ₹586 crore in technology and cloud infrastructure and ₹137 crore to pay back its debt. Remaining ₹1,115 crore will be used for general corporate purposes and to fund a potential acquisition later, the company said.

3. Swiggy valuation: Swiggy is likely to have a valuation of around $10-13 billion at the time of its listing which will be lower than rival Zomato's around $30 billion a market capitalisation.

4. Swiggy's financial performance: In Q1FY25, the company's losses widened 8 percent to ₹611 crore from ₹564 crore in the year-ago period. Swiggy's revenue came in at ₹3,222.2 crore in the June quarter, an increase of 35 per cent from ₹2,389.8 crore in the previous year.

In FY24, the company's revenue grew 36 per cent to ₹11,247 crore from ₹8,265 crore while its losses were down 44 per cent to ₹2,350 crore from ₹4,179 crore.