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โ€˜You and I... In this beautiful world,โ€™ Zomato celebrates Swiggyโ€™s IPO with heartfelt tweet

LivemintLivemint ยท 8m ago
โ€˜You and I... In this beautiful world,โ€™ Zomato celebrates Swiggyโ€™s IPO with heartfelt tweet
Medial

Indian food delivery giants Zomato and Swiggy showcased a rare moment of camaraderie as Swiggy launched its highly anticipated IPO. Zomato tweeted a picture of their delivery personnel standing together, gazing at the Bombay Stock Exchange building adorned with a "Now Listed Swiggy" banner. Swiggy's IPO opened at โ‚น420 on the National Stock Exchange, a 7.69% increase over the IPO price of โ‚น390. Despite cautious market conditions, Swiggy's IPO was oversubscribed 3.59 times and received strong backing from investors. The successful debut is viewed as a testament to the growth potential of India's digital economy and food delivery market.

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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.

Baron Capital values Swiggy at $14.7 Bn

EntrackrEntrackr ยท 10m ago
Baron Capital values Swiggy at $14.7 Bn
Medial

US Investor Baron Capital has valued food-tech company Swiggy at $14.74 billion as of June 2024, according to regulatory filings with the USโ€™ Securities and Exchange Commission (SEC). This is nearly 2.6% down from its last $15.1 billion valuation estimates by Baron Capital in March. The valuation dip in June appears to be a result of rupee depreciation. 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 a confidential route in May. The food tech company will raise up to Rs 3,750 crore ($450 million) via fresh issue of equity shares and an offer for sale of up to an aggregate amount of Rs 6,664 crore ($800 million) in its initial public offering. Swiggy recorded Rs 5,476 crore in revenue from operations and a Rs 1,600 crore loss during the first three quarters of the financial year FY24. Entrackr had exclusively reported financial numbers and a secondary pitch by the company in April. Ahead of the IPO, Swiggy also rolled out its fifth ESOP liquidity programme worth $65 million in July. It claims to have enabled over Rs 1,000 Cr of ESOPs liquidity over the five events which benefited 3,200 employees. Swiggyโ€™s rival Zomato is currently valued at $28.3 billion, as per stock exchange data. The Deepinder Goyal-led firm posted Rs 4,206 crore in revenue with Rs 253 crore in profits in the first quarter of FY24. According to the UBS report, Zomatoโ€™s order growth increased by 1.6% MoM in July while Swiggyโ€™s order growth decreased by 4.6%. On a year-on-year basis, Zomato registered 29% growth as compared to 11% growth by Swiggy.

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