Swiggy appoints delhivery CEO, 2 other to board ahead of IPO

0
274

Swiggy is an Indian online food delivery company that was founded in 2014. It operates in over 500 cities in India, providing food delivery services from a wide range of local restaurants to consumers.

Swiggy Appoints Delhivery CEO, Two Others As Independent Directors On Its Board

The company has grown quickly, becoming one of the largest food delivery companies in India, and is known for its fast delivery and user-friendly app.

Swiggy also offers a variety of services beyond food delivery, including Swiggy Stores, Swiggy Go, and Swiggy Pop.

The food tech giant Swiggy has appointed three separate directors to its board, including Sahil Barua, the MD, and CEO of Delhivery, in what is perceived as another step towards its initial public offering (IPO).

Shailesh Haribhakti, chairman of Shailesh Haribhakti & Associates, and Padma Shri recipient and chairman and MD of TAFE Mallika Srinivasan will both join the board as independent directors.

The new independent directors have a wealth of diverse experience creating large-scale, sustainable businesses.

As we move forward in our mission to bring consumers unmatched convenience, getting these fresh perspectives and strengthening our governance will be extremely beneficial to us, Swiggy CEO and cofounder Sriharsha Majety said.

Swiggy appoints 3 independent directors on board as it gears up for IPO

The company has never before added independent directors to its board. The other members of Swiggy’s board are Majety, SoftBank’s Sumer Juneja, Accel’s Anand Daniel, Prosus Edtech and Food CEO Larry Illg, Ashutosh Sharma of Prosus Ventures, and co-founder of Swiggy Nandan Reddy.

The action is being taken as the hyperlocal commerce startup is preparing for its IPO. JP Morgan and I-Sec were chosen by the decacorn last year to serve as lead managers for the proposed IPO.

Swiggy decided to postpone filing its draft red herring prospectus for the IPO until December 2023, amid the bloodbath in listed new-age tech stocks in India.

Zomato, Swiggy’s main competition, saw a 60% decline in market value in 2022.

The ongoing funding crunch has had an impact on Swiggy like it has on all other startups. The food tech startup fired 380 workers last month as part of a cost-cutting restructuring effort.

Swiggy's pick and drop service to handle deliveries on priority | Mint

From INR 1,616.9 crore in FY21 to INR 3,628.9 crore in FY22, Swiggy’s net loss increased by 2.2X.

The increase in expenses, which increased 2.3X to INR 9,574.5 Cr in FY22 from INR 4,139.4 Cr in FY21, was the main driver of the increase in loss.

From INR 2,675.9 crore in FY21 to INR 6,119.8 crore in FY22, the total revenue increased by 2.2X.

Operations revenue increased from INR 2,546.9 crore to INR 5,704.9 crore, a 124% increase.

IPO refers to:
An initial public offering (IPO) is the process by which a privately held company becomes publicly traded by issuing and selling new securities to the public.

The process of an IPO typically involves the following steps:

Preparation: The company will prepare its financial statements and other required documents, such as a prospectus, that provide information about the company’s business, financial performance, and management team.

Hiring underwriters: The company will typically hire one or more investment banks to act as underwriters for the IPO. Underwriters assist with the pricing and distribution of the securities being sold.

Filing with regulatory authorities: The company will file its prospectus and other required documents with the relevant regulatory authorities, such as the Securities and Exchange Commission (SEC) in the United States.

Marketing the offering: The underwriters will market the offering to potential investors, such as institutional investors and individual investors. They will also help set the initial price for the securities being sold.

Allocating and pricing the shares: Based on demand from potential investors, the underwriters will allocate shares and determine the final price at which they will be sold.

Trading on a stock exchange: Once the IPO is complete, the company’s stock will be listed on a stock exchange, such as the New York Stock Exchange or NASDAQ, and can be bought at the same time and sold by the public.

An IPO can be a significant event for a company, as it can provide a significant source of capital for growth and expansion.

It also usually results in increased visibility and a higher profile for the company.

Swiggy appoints 3 independent directors ahead of IPO

However, going public also brings increased scrutiny from regulators and the public, as well as additional reporting and compliance requirements.

Also, read these articles.

 

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

This site uses Akismet to reduce spam. Learn how your comment data is processed.