Swiggy Raises Primary Fundraise to Rs 4,499 Cr in IPO, Adjusts Secondary Sale - Read Now 

Swiggy, the food and grocery delivery major, has hiked the primary fundraise to Rs 4,499 crore in its much-awaited IPO, which was earlier pegged at Rs 3,750 crore. Besides that, Swiggy also reduced its share sale in the OFS window to 175.1 million shares from 185.3 million shares as mentioned in the draft red herring prospectus filed with SEBI. The IPO is expected to raise around Rs 11,300 crore and the funds are going to strengthen Swiggy's operational capabilities as well as its expansion strategies.

The biggest shareholder of Swiggy, key investor Prosus, has adjusted its stake sale to 109.1 million shares from the 118.2 million shares planned. As Swiggy's valuation is expected at around $11.3 billion, the IPO has attracted investors like BlackRock and CPPIB from across the world and SBI Mutual Fund from India. The IPO price band, which will be at Rs 371-390 per share, will finally come out on Wednesday and catapult Swiggy into probably one of the most valuable tech IPOs that India has ever seen.
 
Competitor Landscape and Stand of Zomato:
The concern of Swiggy has come at a time when its competitor Zomato is standing at a market capitalization of around $26.5 billion based on the latest BSE data. Zomato's Blinkit service is at a dominant position in India's quick commerce market. Swiggy Instamart thus stands as a significant competition to Zomato's services. Zomato also got a nod from its board concerning a fundraising plan of Rs 8,500 crore by way of qualified institutional placement or QIP in order to strengthen its position in the market.

Value Proposition at Swiggy
It got its last valuation rounds with quite significant confidence from investors. Swiggy received a $700 million fund in January this year from Invesco, bringing the valuation at $10.7 billion. Then, by June, 360 One was seen valuing the firm at $11.5 billion. Expansion for Swiggy still focuses on Instamart and food delivery as well as enhancing the entire set-up with the IPO amount. Technology enhancement, introducing new features, and even regional expansion are expected in this IPO amount.

Investor's and Early Backer's Horizon
Apart from the sale of stakes by early investors like Accel, Elevation Capital, and Norwest Venture Partners, most of them are selling partial stakes in the OFS, thus allowing them to cash in on Swiggy's growth in the market. The founders- Sriharsha Majety, Rahul Jaimini, and Nandan Reddy will also partly sell stakes, sharing the growth benefit with public investors.

This IPO puts Swiggy in a competitive position in India's fast-growing online food and grocery market. Growth-driven initiatives, combined with international and domestic investors, have enabled Swiggy to generate sustainable value while expanding its footprint across India.

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