Swiggy converts to public limited company ahead of stock market debut

Rate this post
Swiggy has converted itself from a private limited company to a public limited one, a move made in anticipation of its upcoming stock market debut later this year. The change was reflected in documents filed by the company with the Registrar of Companies, as reported by The Economic Times (ET).

Additionally, the holding company of the food delivery and quick-commerce giant has been renamed from Swiggy Private Limited to Swiggy Limited. This change comes as the company plans to file a draft red herring prospectus in the coming months, paving the way for a $1 billion initial public offering of shares closer to the end of the year.




Swiggy is among several new-age internet companies planning to go public. In late 2023, companies such as Ola Electric, FirstCry, and Awfis filed their draft IPO papers. Additionally, Mamaearth’s parent company, Honasa Consumer, went public in November.

On February 27, Swiggy officially changed its registered name from Bundl Technologies Pvt Ltd to Swiggy Pvt Ltd. The food delivery platform stated that this change aimed to “help establish greater proximity and identification of the company’s corporate name with the company’s core brand, ‘Swiggy’.”

Ahead of filing its draft IPO papers, Swiggy is intensifying efforts to enhance its financial performance and reduce cash burn, particularly within its quick-commerce division, Instamart. The company reportedly recorded a loss of $207 million for the nine months ending December 2023, despite generating revenue of $1.02 billion. In fiscal 2023, Swiggy had reported a net loss of $501 million on operating revenue of $992 million.

In January, reports suggested that Swiggy was planning to downsize its workforce by 6 per cent, affecting 350-400 positions in departments such as technology, call centres, and corporate functions, as part of a cost-cutting initiative. Recently, Swiggy appointed Suparna Mitra, the chief executive of Titan’s watches and wearables division, as an independent director. This appointment followed the resignation of Mallika Srinivasan, chairperson of Tractor and Farm Equipment Ltd, as an independent director in February.




Source link

Visit www.cagurujiclasses.com for practical courses

Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

Disclaimer:- The opinions presented are exclusively those of the author and CA Guruji Classes. The material in this piece is intended purely for informational purposes and for individual, non-commercial consumption. It does not constitute expert guidance or an endorsement by any organization. The author, the organization, and its associates are not liable for any form of loss or harm resulting from the information in this article, nor for any decisions made based on it. Furthermore, no segment of this article or newsletter should be employed for any intention unless granted in written form, and we maintain the legal right to address any unauthorized utilization of our article or newsletter.

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

Leave a Comment