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News · Commerce & Consumer Brands

Swiggy issues bonus shares worth Rs 16,310.56 crore to shareholders

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Date
Company
Swiggy
What it does
Food and grocery delivery platform
Kind
News
Amount
Rs 16,310.56 crore
Sector
Commerce & Consumer Brands

What they do

Swiggy approved a special resolution to allot 16.31 crore bonus preference shares to 33 existing equity shareholders

What happened

The capitalization of Rs 16,310.56 crore from reserves facilitates the bonus allotment

Why it matters

This move is seen as a first major step towards a potential public listing, though no IPO plans have been mentioned

The details

  • Swiggy approved a special resolution to allot 16.31 crore bonus preference shares.
  • The company capitalized Rs 16,310.56 crore from reserves to facilitate this allotment.
  • Founders Sriharsha Majety, Rahul Jaimini, and Nandan Reddy received significant share blocks.
  • Early investors Accel and Elevation Capital also received 14 lakh bonus shares each.
  • Individuals like Sachin Tendulkar and Kunal Shah were listed as bonus recipients.
  • Employees received Rs 329 crore worth of ESOP/MSOP allotments in the previous year.
  • This financial restructuring is seen as a step toward a potential public listing.
  • Current talks suggest a new funding round at a valuation over $10 billion.

The bigger picture

  • Bonus shares convert reserves into equity without bringing in new external capital.
  • It aligns shareholder interests before a potential initial public offering (IPO).
  • The move follows a $1.25 billion raise that valued Swiggy at $5.6 billion.
  • Investors are positioning for a higher valuation in upcoming market entry.

About the business

  • Swiggy operates a core food delivery service across India.
  • It runs Swiggy Instamart, a vertical focused on quick grocery delivery.
  • The company plans to invest $700 million specifically in Swiggy Instamart.
  • Competitors in grocery include Zepto and Zomato-backed Grofers.
  • Swiggy Genie offers a pick-up and drop logistics service for users.
  • It owns SuprDaily, a subscription-based commerce business model.
  • The platform connects local restaurants and stores with end consumers.
  • Revenue comes from commissions, delivery fees, and advertising on the app.
  • Operations span multiple major metropolitan cities in India.

What happens next

  • The company intends to invest heavily in its Instamart grocery vertical.
  • Management is engaging in talks for a new round at higher valuations.

The deal

Type
bonus issue

Investors

  • Accel (co-lead) — Early investor receiving 14 lakh bonus shares.
  • Elevation Capital (co-lead) — Early investor receiving 14 lakh bonus shares.

Founders

  • Sriharsha Majety, Founder
  • Rahul Jaimini, Founder
  • Nandan Reddy, Founder

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