Madhuri Dixit Bets Big on Swiggy Ahead of ₹11,000 Crore IPO - Read Now

As Swiggy gears up for its much-anticipated Initial Public Offering (IPO), Bollywood icon Madhuri Dixit has made headlines by investing heavily in the online food delivery company. The Swiggy IPO, valued at ₹11,000 crores, is expected to hit the market by December 2024, with the company’s valuation projected to soar to ₹1.25 lakh crore. Madhuri Dixit, alongside Innov8 founder Ritesh Malik, has reportedly invested ₹3 crores in Swiggy through secondary market deals. With both investing ₹1.5 crore each at a price of ₹345 per share, this is yet another significant endorsement for the rapidly growing food-tech giant.

Swiggy’s IPO Buzz: A Star-Studded Affair

Swiggy’s upcoming IPO has created waves in the market, not just because of its size but due to the high-profile investors it has attracted. Apart from Madhuri Dixit, major figures such as Amitabh Bachchan and Motilal Oswal Financial Services' Chairman Ramdeo Agrawal have also invested in the company. With Swiggy’s increasing popularity and expansion, these investments indicate the growing confidence in India’s thriving food delivery and e-commerce sectors.

Madhuri Dixit’s Investment Strategy

Madhuri Dixit and her husband, Dr. Sriram Nene, have been active investors in startups, often backing innovative and high-potential companies before they go public. Speaking about their strategy, Dr. Nene mentioned, “In the U.S., the startup ecosystem has already boomed, but India is just beginning its journey. We’re exploring promising companies that are yet to be listed.” This latest move in backing Swiggy aligns with their strategy of supporting companies that are set to make a major impact on the Indian market.

Dixit’s investment, done in collaboration with Ritesh Malik, was facilitated through Swiggy’s investment banker, Avendus. They acquired shares via a secondary transaction, which means the shares were purchased from an existing investor, rather than directly from the company. This method is common in the lead-up to an IPO, where investors aim to secure a stake in the company at pre-IPO prices.

Swiggy’s Performance and Growth

Swiggy has experienced significant growth in the last fiscal year. The company’s revenue increased by 36%, reaching ₹11,247 crores, driven by the rapid growth of both its food delivery services and its instant commerce arm, Instamart. In addition, Swiggy managed to reduce its losses by 43%, from ₹4,000 crores to ₹2,350 crores, demonstrating its operational efficiency and potential for future profitability.

The timing of Swiggy’s IPO is considered ideal, given its improving financials, growing user base, and rising demand for online food delivery services. The IPO will provide the company with further capital to expand its operations and compete more aggressively with rivals like Zomato in India’s fast-paced food delivery market.

The Broader Impact of Star Investments

Madhuri Dixit’s investment adds star power and credibility to Swiggy’s IPO. Celebrity endorsements and investments often boost a company’s visibility and attract further interest from retail and institutional investors. With a net worth of approximately ₹250 crores, Madhuri Dixit is no stranger to smart investments, having built her wealth through a combination of films, brand endorsements, and equity investments. She reportedly charges ₹8 crores for brand endorsements and ₹24-25 crores for judging reality shows, further demonstrating her business acumen.

With Swiggy already a household name, the celebrity investments signal confidence in the company’s future trajectory. As India’s startup ecosystem continues to grow, more celebrities are looking to diversify their portfolios by investing in disruptive companies like Swiggy.

While Swiggy’s growth has been promising, challenges remain, including rising competition, regulatory hurdles, and fluctuating consumer demand. The IPO proceeds will likely be used to scale its operations, invest in technology, and explore new revenue streams.

For investors, Swiggy’s IPO represents an opportunity to capitalize on the growing trend of online food delivery and instant commerce in India. With a massive market to capture and improving financial performance, Swiggy is poised for a strong market debut.