Swiggy to foray into ownership, management of sports teams business
Food delivery and quick commerce player Swiggy is setting up a subsidiary to foray into the growing demand for recreational activities.
Online food delivery platform Swiggy’s co-founder and CEO Sriharsha Majety has said that all preparations are underway for its mega Initial Public Offering (IPO), via which it is likely to raise $1 billion later this year.
“We’ve been preparing for our IPO. We’ve added independent directors to the board and there are all kinds of preparations that are on,” Majety told Moneycontrol.
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For its IPO process, the company is likely to have picked seven investment banks, including Kotak Mahindra Capital, Citi and JPMorgan, Bofa Securities, Jefferies, among others.
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Swiggy is getting ready to go public after its competitor Zomato went public in 2021.
According to Majety, Zomato’s listing has helped Swiggy gain a better understanding of retail investors and how they perceive the food delivery market, the report mentioned.
“There is no denying that it (Zomato being listed) makes life easier for us. There’s much to learn in terms of how one manages communication as a public company, how one manages guidance as a public company, what gets more scrutiny and what doesn’t,” Majety was quoted as saying.
Meanwhile, Swiggy’s investor Prosus, in its financial filing, stated that Swiggy’s core food-delivery business grew 17 per cent and delivered gross merchandise value (GMV) of $1.43 billion in the first half of FY24.
“This was led by a rise in transacting users that drove double-digit order growth and inflation in AOV,” Prosus said.
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