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Swiggy's ₹3,750 crore IPO aims to expand its quick commerce division and repay debt. The company will invest in dark stores, technology, and marketing to strengthen its infrastructure and growth.
Swiggy, the popular food delivery platform backed by Softbank, has filed for a ₹3,750 crore initial public offering (IPO). This much-anticipated IPO, expected to be one of India’s largest listings in 2024, will allow the company to focus on expanding its quick commerce segment and paying off existing debt. A portion of the funds will also be used to enhance Swiggy’s infrastructure and support its overall growth strategy.
The IPO will also include an offer-for-sale (OFS) by existing shareholders, amounting to 18.53 crore shares. Among those selling stakes are prominent investors such as Accel India, Tencent Europe, DST EuroAsia, Alpha Wave Ventures, and Elevation Capital. This structure provides early backers of the company with an exit route, while also offering public investors an opportunity to participate in Swiggy’s future growth.
Swiggy plans to channel a significant portion of the raised capital into its quick commerce segment, with ₹982.40 crore allocated to its subsidiary Scootsy’s dark store network. Out of this, ₹559.10 crore will be spent on setting up new dark stores, while ₹423.30 crore will be directed towards lease and licensing agreements. The company aims to boost its operational infrastructure to strengthen its quick delivery capabilities in urban areas.
Additionally, ₹137.41 crore will be used to repay debt, mainly focusing on clearing the obligations of Scootsy. Swiggy will also invest ₹586.20 crore in technology and cloud infrastructure, ensuring that its platform remains robust and scalable.
Swiggy is earmarking ₹929.50 crore for brand marketing and business promotion. This will help in strengthening its market position and attracting new customers. The remaining funds will support inorganic growth opportunities and general corporate expenses, allowing the company to remain flexible and adaptable in a highly competitive sector.
Swiggy’s ₹3,750 crore IPO is a strategic move aimed at expanding its quick commerce operations and paying down debt. The allocation of funds across infrastructure, technology, and marketing indicates the company’s strong focus on growth and innovation, positioning it well for future success.
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