Swiggy pre-IPO offer: Ahead of share sale, company offers 20% discount to HNIs, says report

Discounted Shares for Potential Investors

A report by Entrackr suggests that Swiggy is extending an opportunity for HNIs to purchase its shares at a significant discount of 20% from its current valuation, LiveMint indicated.

Valuation Details and Financial Advisors

The report suggests that Swiggy has proposed to sell shares priced at “ ₹350 each”. Notably, that would value the company at “ ₹80,000 crore”.

Investor Confidence and Market Comparisons

There has been a huge surge in Swiggy’s valuation courtesy successive mark-ups by investors, and it is leading to parallels being drawn with rival Zomato.

Market Environment and IPO Outlook

There has been a rush of startups entering the market to raise funds and attempts have been fairly successful as the overall market has been climbing to rarefied heights repeatedly. And it is in this regard that Swiggy’s decision to move forward with its IPO is getting the kind of attention seen over the recent period. Recent valuation increases of various startups such as Meesho, PineLabs, FirstCry, and Ola Electric have gone a long way in boosting sentiments too.

Favourable Outlook in Midst of Losses

Swiggy incurred a loss of $200 million during the nine months ending December 2023 and reported a loss of ₹41.8 billion ($500 million) for the fiscal year 2022–23, according to a widely quoted internal community document. To reduce losses, Swiggy is targetting measures such as lower wage payouts and reduced marketing spending.