Auto ancillary firm Hindustan Composites has acquired a minority stake in the online food delivery giant Swiggy. This move comes shortly after Amitabh Bachchan’s family office also purchased a minority stake in the Bengaluru-based company.
Hindustan Composites has reached an agreement to buy 150,000 equity shares of Swiggy, amounting to an investment of ₹5.17 crore, as disclosed through the National Stock Exchange (NSE). The investment aligns with the company’s strategy to secure both immediate and long-term benefits. The deal is expected to be finalized by November 30, 2024.
As of March 2023, Swiggy’s net worth was reported at ₹9,810 crore (approximately $1.18 billion). The company has confidentially filed for an IPO in May and plans to raise up to ₹3,750 crore ($450 million) through a fresh issue of equity shares, with an additional offer for sale totaling ₹6,664 crore ($800 million). Swiggy is anticipated to submit draft IPO papers to SEBI soon.
In preparation for the IPO, Swiggy rolled out its fifth ESOP liquidity program in July, valued at $65 million, benefiting 3,200 employees. Additionally, the company has recently strengthened its leadership team with new appointments for CEO and COO roles.
For the first three quarters of FY24, Swiggy reported revenue of ₹5,476 crore and a loss of ₹1,600 crore. The company has yet to release audited results for FY24. In comparison, its rival Zomato, led by Deepinder Goyal, is valued at $28.3 billion and reported revenue of ₹4,206 crore with a profit of ₹253 crore in the first quarter of FY24.
