In a strategic move, Swiggy goes public. The popular food delivery app, has transitioned from a private limited firm to a public limited company, renaming itself from Swiggy Pvt Ltd to Swiggy Ltd. The alteration, initiated in February 2024, aims to strengthen the brand’s identity and proximity to its core values.
This transformation comes in anticipation of Swiggy’s much-anticipated $1 billion IPO (initial public offering), slated to be announced before the year’s end. The decision underscores the company’s intentions to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in the coming months.
The Economic Times reported that the alteration in Swiggy’s registration was documented with the Registrar of Companies (RoC), signaling a significant shift in its corporate structure. This shift aligns with the broader trend of start-ups leveraging the current stock market momentum by entering the public domain. Notably, Mamaearth’s parent company, Honasa Consumer, went public in November 2023, while other tech giants like Ola Electric, FirstCry, and Awfis have also filed their draft IPO papers.
Despite Swiggy’s robust revenue of $1.02 billion, the company reported a loss of $207 million for the nine months ending December 2023. Moreover, it had previously incurred a net loss of $501 million for the full fiscal year 2022-23, despite generating an operating revenue of $992 million.
To enhance its financial outlook and streamline operations, Swiggy announced plans to downsize its workforce by 6%, equating to approximately 350-400 job cuts, as reported in January. These measures are part of Swiggy’s broader strategy to curtail costs and achieve profitability in preparation for its imminent IPO.
With its recent corporate overhaul and steadfast pursuit of financial stability, Swiggy is poised to make a significant mark in the realm of public offerings, further solidifying its position as a leading player in the food delivery industry.
As Swiggy gears up for its monumental transition to a public limited company and its highly anticipated IPO, navigating the legal landscape with precision and confidence is paramount. At Vakilsearch, we specialise in providing comprehensive legal services tailored to meet the unique needs of companies embarking on their IPO journey.
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