Foodtech giant Swiggy
has submitted its first updated draft red herring prospectus (DRHP) on Thursday (September 26) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) valued at INR 3,750 Cr ($450 Mn).
According to the DRHP, the public issue consists of a fresh share issuance worth INR 3,750 Cr, alongside an offer for sale (OFS) of 18.53 Cr equity shares.
With recent reports suggesting shares purchased at approximately INR 350 per piece, the OFS is estimated to be around INR 6,485 Cr, bringing the total IPO size close to INR 10,000 Cr ($1.2 Bn
Among the notable investors, Accel, Coatue, Alpha Wave, Elevation, Norwest, and Tencent will be divesting their respective shares through the OFS. Notably, Accel India IV (Mauritius) Ltd will offload 1.05 Cr shares, and Alpha Wave Ventures will sell 55.73 Lakh shares.
Swiggy intends to use the IPO proceeds towards various strategic initiatives, including INR 929.5 Cr for marketing and promotional activities, investments in technology and cloud infrastructure, inorganic growth through acquisitions, and general corporate purposes.
Not to mention, the startup has already set aside INR 982.4 Cr to its “material subsidiary,” Scootsy, for setting up dark store networks and covering lease and licence expenses.
Swiggy’s DRHP also highlights that Scootsy Logistics Private Ltd. will offer supply chain services to wholesalers and retailers, such as warehouse management, warehouse processing, and order fulfilment services.
Kotak Mahindra Capital, JP Morgan India, BofA Securities, Citigroup Global, and Jefferies are among the bookrunning lead managers for the IPO. Once SEBI’s approval is secured, Swiggy will list its shares on both the NSE and BSE.
On the financial front, DRHP outlined that Swiggy’s net losses widened by over 7% to INR 605.7 Cr in Q1 FY25 against INR 562.8 Cr in the same quarter last fiscal. Despite this, its operational revenue surged nearly 35% to INR 3,222.2 Cr in the June quarter, up from INR 2,389.8 Cr in Q1 FY24.
Although food delivery remains the major revenue source for Swiggy, its quick commerce arm Instamart is also becoming increasingly vital. However, it still faces tough competition from its rivals like Zomato and Blinkit.
While Swiggy has strengthened its leadership team with appointments of seasoned executives, its success in various verticals including Instamart and Dineout will depend a lot on its strategic leadership.
Swiggy’s 532-page draft document sheds light on its shareholding pattern and outlines the people at the helm of the startup.
Shareholding Pattern
MIH India Food Holdings B.V., a subsidiary of Naspers, is the largest shareholder with a 30.95% stake in Swiggy
SVF II SONGBIRD (DE) LLC which is a part of SoftBank Vision Fund II, is the second biggest shareholder with a 7.75% stake in the startup, followed by Accel, which holds a 6.08% stake.
While Elevation Capital V Limited owns 3.10% of Swiggy, Norwest Venture Partners VII-A-Mauritius holds a 3.41% stake, and Inspired Elite Investments Limited owns 3.88%.
DST EuroAsia V B.V. and Tencent Cloud Europe B.V. hold 3.23% and 3.64% stake, respectively.
HH BTPL Holdings II Pte. Ltd. owns 1.16% of Swiggy, while Coatue PE Asia XI LLC holds a 2.23% stake.
OFI Global China Fund, LLC owns 1.78%, and Alpha Wave Ventures II, LP holds 1.21%, with INQ Holding LLC having a 2.95% stake.
In terms of the stake owned by the cofounders, Sriharsha Majety owns a 6.23% stake in Swiggy, while Lakshmi Nandan Reddy Obul holds 1.76% and Rahul Jaimini owns 1.14%.
Board Of Directors
Sriharsha Majety
Sriharsha Majety is the cofounder, managing director and the group chief executive officer of the company. He has more than 10 years of experience in the company.
Lakshmi Nandan Reddy Obu
Lakshmi Nandan Reddy Obul is Swiggy’s cofounder and a full-time director – head of innovation on Swiggy’s board. He has previously worked with Intellectual Capital Advisory Services Pvt. Ltd. (Intellecap) as an associate, business consulting.
Anand Kripalu
Anand Kripalu is the independent director and chairman of our Board, since December 4, 2023. He is currently the managing director and global chief executive officer at EPL Limited. He was previously associated with Diageo in India – United Spirits Limited for 8 years. Further, he was also associated with Cadbury Schweppes Asia Pacific, Hindustan Lever Limited and DCM Data Products.
Shailesh Vishnubhai Haribhakti
Shailesh Vishnubhai Haribhakti has been an independent director of Swiggy since January 24, 2023. He has an experience of more than 15 years due to his previous association with Blue Star Limited, L&T Finance Holdings Limited, Raymond Limited, Ambuja Cements Limited and Torrent Pharmaceuticals Limited.
Sahil Barua
Sahil Barua has been an independent director on Swiggy’s board since January 24, 2023. He has been the cofounder and chief executive officer of Delhivery Limited for over 11 years and has previously worked with Bain and Company India Private Limited as a consultant for over 2 years.
Suparna Mitra
Suparna Mitra has been an independent director on Swiggy’s board since April 1, 2024. She has been the chief executive officer of the watches and wearables division of Titan Company Limited for 18 years and also serves on the Board of Governors for the Indian Institute of Management, Kozhikode for 5 years. Further, she has previously served on the board of Tata Power Solar Systems Ltd.
Anand Daniel
Anand Daniel has been a nominee director (non-executive) on Swiggy’s board since July 10, 2015. He was previously associated with Accel India Management LLP for 4 years and is currently associated with Accel Partners India LLP as a partner for 10 years.
Ashutosh Sharma
Ashutosh Sharma is a nominee director (non-executive) on Swiggy’s board since June 21, 2017. He is currently associated with MIH Internet India Private Limited as investment partner, growth+ and has been associated with the Prosus Group for more than 7 years. He was previously associated with Norwest Venture Partners as a vice president and Qualcomm India Private Limited.
Sumer Juneja
Sumer Juneja has been a nominee director (non-executive) on Swiggy’s board since July 27, 2021. He is currently the managing partner and head of Europe Middle East and Africa (EMEA) and India at SB Investment Advisers (UK) Limited. He was previously associated with entities affiliated with SB Investment Advisers (UK) Limited for 4 years. NVP Venture Capital India Private Limited as a director for more than 9 years.
Roger Clark Rabalais
Roger Clark Rabalais has been a nominee director (non-executive) on Swiggy’s board since December 4, 2023. He is currently associated with Prosus Services B.V. and has been associated with the Prosus Group for more than 10 years.
Key Managerial Personnel
Phani Kishan Addepalli
Phani Kishan Addepalli is the chief growth officer. He has been associated with the company since March 10, 2015. Prior to joining our company, he was associated with Boston Consulting Group (India) Private Limited as a senior associate.
Rohit Kapoor
Rohit Kapoor is the chief executive officer – food marketplace of the company. He has been associated with the company since August 16, 2022. Prior to joining our company, he was associated with Oravel Stays Limited (OYO) as the global CMO and Max Healthcare Institute Ltd. as a senior director and chief growth officer in the growth department, McKinsey & Company Inc. – India branch as an engagement manager.
Madhusudhan Rao Subbarao
Madhusudhan Rao Subbarao is the chief technology officer of the company. He has been associated with the company since June 21, 2018. Prior to joining our company, he was associated with Boomerang Commerce India Private Limited and Amazon. He joined the company as a vice president – engineering.
Girish Menon
Girish Menon is the chief human resources officer of the company. He has been associated with the company since April 19, 2016. Prior to joining our company, he was associated with Flipkart Internet Private Limited as an associate director – HRBP, Indus Mobile Distribution Private Limited as a vice president – HR, HSBC as a vice president – regional HR, Vistaar Livelihood Financial Services Private Limited as a vice president – human resources, and Fullerton India Credit Company Limited as an assistant vice president.
Amitesh Jha
Amitesh Jha is the chief executive officer – Instamart effective from September 4, 2024. Previously, he was associated with Flipkart Private Limited for 14 years as senior vice president.
Rahul Bothra
Rahul Bothra is the chief financial officer of the company. He has been associated with the company since September 1, 2017. Prior to joining our company, he was associated with Wipro Limited, Britannia Industries Limited, and Olam International Limited.
M. Sridhar
M. Sridhar is the company secretary and compliance officer of the company. He has been associated with the company since February 5, 2024, and has been appointed as the company secretary and compliance officer from April 1, 2024. Prior to joining our company, he was associated with Himatsingka Seide Limited, Prestige Estates Projects Limited, Shyamaraju & Company (India) Private Limited, GMR Energy Limited, S&S Power Switchgear Limited, Teledata Marine Solutions Limited, and Peerless Securities Limited.
By Inc42 Media
Source: Inc42 Media