Stake sale · Commerce & Consumer Brands

Meituan sells Swiggy stake before IPO

By Startup Enthusiast · 28 October 2024

What they do

Swiggy is India's leading food delivery and convenience services platform

Meituan sold a significant portion of its Swiggy stake in a secondary transaction worth $200-$220 million

The sale values Swiggy at about $10 billion ahead of its upcoming IPO

Meituan, the Chinese food delivery giant, sold a significant portion of its stake in Swiggy through a secondary transaction.
The transaction was valued at $200-$220 million.
Meituan first invested in Swiggy in 2018 and participated in a 2020 funding round.
The sale implies a Swiggy valuation of approximately $10 billion.
Swiggy's IPO is expected within three weeks of the article date, October 28, 2024.
The IPO plans to raise $450 million through a fresh issue and an offer for sale (OFS).
Other investors, including Elevation Capital and Norwest, have also recently reduced their Swiggy holdings.
Prosus and Accel, the largest shareholders, may explore secondary sales before the IPO.

The secondary sale comes as Swiggy prepares for its public market debut.
Meituan's exit is a significant move by a major early investor.
The transaction provides a valuation benchmark for the upcoming IPO.
Swiggy's primary competitor, Zomato, has already reached profitability, putting pressure on Swiggy's performance.

Swiggy operates a food delivery platform connecting customers with restaurants.
It also offers convenience services, including grocery and essentials delivery.
The company reported FY24 revenue of Rs 11,247 crore, a 36% increase from the previous year.
Swiggy's FY24 net loss was Rs 2,350 crore, a 44% reduction from the prior year.
The company operates across India, serving millions of customers.

Meituan (seller) — Chinese food delivery giant.
Elevation Capital (seller) — Venture capital firm that recently reduced its Swiggy holdings.
Norwest (seller) — Venture capital firm that recently reduced its Swiggy holdings.
Prosus (existing) — One of the largest shareholders.
Accel (existing) — One of the largest shareholders.