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Swiggy Raises $605M from Anchor Investors, Domestic Institutional Investors Lead the Round

• ByStartupStory     |    November 6, 2024

Sriharsha Majety-led Swiggy, the food delivery and quick-commerce platform, has raised approximately ₹5,085 crore (nearly $605 million) from anchor investors as it prepares for its much-anticipated $1.35 billion initial public offering (IPO). According to a recent filing with the Bombay Stock Exchange (BSE), Swiggy’s anchor investment round attracted over 75 key institutional investors, with domestic players leading the charge.

This pre-IPO funding saw shares allocated to both domestic and international investors at the upper price band of ₹390 per share, just ahead of Swiggy’s ₹11,700-crore public offering. Out of the total 13.03 crore shares allotted to anchor investors, domestic mutual funds accounted for a significant 40.65% of the allocation. Prominent domestic mutual fund participants included SBI, ICICI Prudential, Kotak, Nippon India, and Mirae Asset Management.

Domestic insurance companies were also prominent in the anchor round, with participation from ICICI Prudential Life Insurance, HDFC Life Insurance, and SBI Life Insurance. Overall, domestic institutional investors secured about 56% of the anchor book allocation. International mutual fund investors also joined the round, with major names such as Astrone Capital, Fidelity, and BlackRock being included among Swiggy’s anchor investors.

Swiggy’s IPO is scheduled to open for subscription on November 6, allowing retail and institutional investors to participate. The company has set a price band of ₹371 to ₹390 per equity share. The IPO comprises a fresh issue of 11.54 crore equity shares and an offer for sale (OFS) of 17.51 crore equity shares by existing stakeholders. Early investors in Swiggy, including Accel and Elevation Capital, are poised for a substantial return, expected to see gains exceeding 3,300% on their initial investments during the offering.

Prosus, Swiggy’s largest shareholder, plans to tender 109 million shares in the offer for sale, which is projected to result in a 197% gain on its investment in the food-tech unicorn.

The anchor investment round signals strong confidence from institutional investors in Swiggy’s business model and its potential growth in India’s competitive food delivery and quick-commerce sectors. The company’s IPO will mark one of the largest public offerings in India’s tech and e-commerce space, further underscoring Swiggy’s stature in the industry.

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