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Exclusive: Swiggy offers 20% discount to HNIs in pre-IPO deal

EntrackrEntrackr ยท 1y ago
Exclusive: Swiggy offers 20% discount to HNIs in pre-IPO deal
Medial

The Swiggy IPO is around the corner and the company has started preparing the ground for a debut on the stock exchange, likely after the general election. The firm turned into a public entity earlier this week and shortlisted bankers for running the IPO syndicate. While Entrackr exclusively reported about the firmโ€™s conversion into the public entity and its financial numbers in three quarters of FY24, wealth managers on Swiggyโ€™s behalf have been pitching a pre-IPO deal to high net-worth individuals (HNIs) to buy its shares at 20% discount on its current valuation, according to three sources aware of the details. โ€œThe company is offering shares at Rs 350 a piece and at a valuation of Rs 80,000 crore ($9.6 billion) valuation. This is roughly a 20% discount,โ€ said one of the sources requesting anonymity According to sources, Swiggyโ€™s current valuation stands at around Rs 1,00,000 lakh crore (over $12 billion). โ€œThe minimum investment in the round is Rs 25 lakh,โ€ added the above-quoted person. Itโ€™s worth highlighting that US-based investor Invesco recently marked up Swiggyโ€™s valuation up to $12.7 billion, indicating an optimistic outlook for the food tech company. Itโ€™s worth noting that it was the second markup in its value by Invesco and overall third for the Bengaluru-based foodtech decacorn. Queries sent to Swiggy did not elicit an immediate response. Swiggy booked Rs 5,476 crore in revenue from operations and Rs 1,600 crore loss during the first three quarters of the financial year FY24. Its revenue and losses stood at Rs 8,265 crore and Rs 4,179 crore, respectively, in the fiscal year ending March 2023. Meanwhile, rival Zomatoโ€™s revenue from operations stood at Rs 8,552 crore during the first three quarters of FY24. The firm, which made its public debut in 2021, also booked Rs 178 crore profit during the period. Currently, Zomatoโ€™s market cap hovers around $20.7 billion. That being said, Swiggy is marching ahead with its IPO plans as market sentiments appear to turn increasingly bullish following a year of the so-called โ€˜funding winterโ€™. This is evident from recent valuation markups of several startups, including Meesho, PineLabs, FirstCry, and Ola Electric which are gearing up to go public either this year or early next year. While the sterling turnaround in peer Zomatoโ€™s numbers might give cause for optimism to Swiggyโ€™s investment bankers, they will be aware that powering Zomato is the sharp rebound in the performance of Blinkit, its quick delivery platform. Swiggyโ€™s Instamart by contrast, has been a laggard in the space. Lending further credence to the fact that profits on the IPO are hardly a given for investors is the matter of aggregate losses, unlike Zomato. It seems fairly certain that a successful IPO will be followed by at least a year or more of losses for Swiggy, or subdued growth, if it chooses to staunch losses. The $12 billion valuation in private markets, by that measure, seems too optimistic yet, perhaps a fairer indication of value in FY26, than in FY25, if at all.

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Baron Capital marks up Swiggyโ€™s valuation to $15.1 Bn

EntrackrEntrackr ยท 1y ago
Baron Capital marks up Swiggyโ€™s valuation to $15.1 Bn
Medial

US-based asset manager Baron Capital has marked up the valuation of Swiggy to $15.1 billion, according to regulatory filings with the USโ€™ Securities and Exchange Commission (SEC). This is a nearly 25% jump in the companyโ€™s valuation from $12.1 billion estimated by Baron as of December 2023. Soon after Baronโ€™s mark up, Swiggyโ€™s early backer Invesco also increased its valuation to $12.7 billion in April. The development was first reported by ET. This comes at a time when Swiggy is gearing up for its initial public offering (IPO). The Bengaluru-based firm received shareholdersโ€™ nod to float its $1.25 billion IPO and it reportedly filed papers with SEBI via confidential route in May. Before filing IPO papers, Swiggy was pitching a pre-IPO deal to high net-worth individuals (HNIs) to buy its shares at a 20% discount. Entrackr exclusively reported the development. Swiggy recorded Rs 5,476 crore in revenue from operations and Rs 1,600 crore loss during the first three quarters of the financial year FY24. Entrackr had exclusively reported financial numbers and secondary pitch by the company in April. In FY23, its revenue stood at Rs 8,265 crore in FY23 whereas its losses soared to Rs 4,179 crore. Besides Swiggy, Pine Labs, Meesho, FirstCry and Ola Electric also saw markups in their valuation in the last six months. Swiggyโ€™s arch rival Zomato is currently valued at $18.7 billion, as per stock exchange data. The latter recently hit a market cap of $21 billion. Meanwhile, Baron has marked down edtech company Byjuโ€™s valuation to only $24 million as of March 2024. Earlier, BlackRock had already slashed the companyโ€™s valuation to $1 billion from $22 billion in early 2022.

Exclusive: Swiggy to raise Rs 5,000 Cr via fresh issue

EntrackrEntrackr ยท 10m ago
Exclusive: Swiggy to raise Rs 5,000 Cr via fresh issue
Medial

Swiggy, the food delivery and quick commerce firm, is set to raise Rs 5,000 crore ($602 million) in a fresh issue as part of its initial public offering (IPO). The Prosus-funded company has already targeted Rs 6,664 crore through an offer for sale (OFS), with plans to seek board approval for the OFS in the first week of next month. According to an internal document accessed by Entrackr, Swiggyโ€™s board has passed a special resolution to issue equity shares worth up to Rs 5,000 crore, subject to shareholder approval at a meeting (EGM) on October 3. Swiggyโ€™s IPO has been anticipated since the company filed draft papers confidentially in April. Reports suggest the firm has also received shareholder approval to raise Rs 10,400 crore in total (Rs 3,750 crore via a fresh issue and Rs 6,664 crore through an OFS). However, Swiggyโ€™s IPO size may vary, as the fresh issue mentioned in the latest resolution is 1.3X larger than the previously estimated Rs 3,750 crore. The Bengaluru-based company is expected to file its draft red herring prospectus (DRHP) with SEBI soon. Queries sent to Swiggy did not elicit a response by the time of publication. Ahead of the IPO, Swiggy secured strategic investments from Amitabh Bachchanโ€™s Family Office and Hindustan Composites. Meanwhile, investor Baron Capital recently valued Swiggy at $14.5 billion. The food tech firm demonstrated strong financial growth with 36% year-on-year growth in revenue to Rs 11,247 crore in FY24 and cut its losses by 44% to Rs 2,350 crore in the same period. Swiggyโ€™s food business contributed Rs 6,100 crore to its overall income, while its quick commerce arm, Instamart, generated Rs 1,100 crore in gross revenue in FY24. To compete with rivals like Zepto and Zomatoโ€™s Blinkit, Swiggy invested $700 million in quick commerce in December 2021. Last month, the Sriharha Majety-led firm also roped in a new chief executive and new chief operating officer for Instamart. Following a series of startup IPOs from Delhi NCR, Bengaluru is catching up in 2024. A few city-based companies, including Digit Insurance and Ola Electric, have already made their stock exchange debuts this year. Besides Swiggy, Bengaluru-based Ather Energy also submitted its draft IPO papers on Monday, with its largest stakeholder, Hero MotoCorp, opting not to participate in the OFS.

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