Swiggy Converts to Public Company Ahead of Initial Public Offering

• ByStartupStory     |    April 9, 2024

On-demand convenience platform Swiggy has undergone a significant transformation, officially converting to a public company under the name Swiggy Limited. This transition marks a strategic move as Swiggy prepares for its highly anticipated debut on the public markets later this year. The company’s decision, as per filings with the Ministry of Corporate Affairs, reflects its commitment to transparency and growth in the evolving landscape of the global markets.

Name Change and Preparations for IPO:

In a recent resolution filed with the Registrar of Companies, Swiggy disclosed its name change from Bundl Technologies to Swiggy Private Limited, aiming to strengthen its corporate identity alignment with its core brand, ‘Swiggy’. This renaming comes ahead of the company’s ambitious plans to raise up to $1 billion from its initial public offering (IPO), slated to occur later this year. The company’s draft red herring prospectus (DRHP) outlining the objectives of the offer is anticipated to be filed in the coming months, as reported by various media outlets.

Market Trends and Investor Sentiment:

Swiggy’s decision to go public follows a trend observed in the industry, with notable brands such as FirstCry and Ola Electric already listed on the bourses. Despite prevailing macroeconomic uncertainties in global markets, new-age companies are pushing forward, aiming to defy short and long-term imbalances. Notably, Honasa Consumer, the parent company of Mamaearth and Aqualogica, ventured into the public market in November, signaling a wave of innovation and growth in the sector.

Investor Confidence and Valuation:

Investor sentiment towards Swiggy has been dynamic, with notable fluctuations in valuation. In May 2023, one of Swiggy’s prominent investors, Baron Capital, marked up its holdings in the food delivery company by 13%, reaching a valuation of $12.1 billion. This positive appraisal contrasts with Invesco’s valuation adjustment in May 2023, initially marking down Swiggy’s valuation to $5.5 billion but subsequently revising it to $9.5 billion by October 31, 2023.

Achieving Profitability Milestone:

Swiggy’s journey towards public listing has been accompanied by significant milestones, including the announcement in May 2023 that its food delivery business achieved profitability for the first time in March of that year. Sriharsha Majety, Swiggy’s co-founder and CEO, highlighted in a blog post that this profitability encompassed all corporate costs, excluding expenses related to the employee stock ownership plan.

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