Swiggy IPO:  Swiggy has converted itself to a public limited company from a private limited company, according to documents filed with the Registrar of Companies, as the food delivery and quick-commerce platform gears up for an initial public offering (IPO) later this year, The Economic Times reported.

Swiggy refused to comment on the development when Mint reached out for confirmation.

The company's holding company has been renamed ‘Swiggy Limited’ from 'Swiggy Private Limited', signalling its transition to a publicly-traded entity. Swiggy is expected to file its draft red herring prospectus in the coming months, with plans to raise around $1 billion through the IPO closer to the end of 2024, the report added.

Swiggy IPO: A broader trend

The food delivery giant's decision to go public aligns with a broader trend of new-age internet companies in India seeking to list on public bourses. In recent months, firms including Ola Electric, FirstCry, Awfis, and Honasa Consumer (parent company of Mamaearth) have also filed their draft IPO papers.

Swiggy had previously changed its registered name from ‘Bundl Technologies Pvt Ltd’ to ‘Swiggy Pvt Ltd’ in February 2023, to establish a stronger brand identity and association with its core business of food delivery.

Focus on Financials

Ahead of filing IPO documents, Swiggy is reportedly focusing on improving its financial performance and reducing cash burn, particularly in its quick-commerce division, Instamart. 

For the nine months ending December 2023, the company reportedly recorded a loss of $207 million on a revenue of $1.02 billion. In the previous fiscal year, Swiggy posted a net loss of $501 million on operating revenue of $992 million.

Source: mint