Swiggy upsizes IPO to Rs 5,000 cr amid growing competition with Zomato: Report

The decision was made during an Extraordinary General Meeting (EGM) on October 3, reported Moneycontrol.

The company created a provision to raise an additional Rs 1,250 crore, if needed, bringing the total IPO size, including the Offer for Sale (OFS) component, to as much as Rs 11,664 crore, the report said.

Swiggy is preparing for one of the largest public offerings by a new-age company in India, with plans to raise between Rs 10,414 crore ($1.25 billion) to Rs 11,664 crore ($1.4 billion).

The IPO is expected to hit the market later this year, as Swiggy faces increasing competition from profitable rivals such as Zomato, Flipkart Minutes, Tata BigBasket, and Blinkit.

Swiggy’s revenues have grown significantly in recent years. For FY24, its revenue jumped 36 percent to Rs 11,247 crore, up from Rs 8,265 crore in FY23, while losses narrowed by 44 percent to Rs 2,350 crore from Rs 4,179 crore.

Despite this progress, Swiggy’s Q1FY25 losses widened 8 percent to Rs 611 crore, driven by higher expenses.

In comparison, its competitor Zomato reported Rs 12,114 crore in revenue for FY24, generating a profit of Rs 351 crore.

In Q1FY25, Zomato reported Rs 4,206 crore in revenue, a 74 percent year-on-year growth, with a profit of Rs 253 crore.

The increased IPO size aims to bolster Swiggy’s position in an increasingly competitive market as it seeks to close the gap with rivals.