Zomato and Blinkit have significantly improved their profitability since Swiggy filed draft IPO papers in April.

Swiggy will increase the size of its IPO: Now the target is to raise Rs 5,000 crore, earlier it was Rs 3,750 crore

Online food delivery platform Swiggy has decided to increase the size of its Initial Public Offering (IPO). The company is now planning to raise Rs 5,000 crore from the sale of new shares, which was earlier Rs 3,750 crore.

According to media reports, this new plan is Rs 1,250 crore (about $150 million) more than the previous estimate. This indicates that Swiggy wants to strengthen itself further in the fast-growing market and competition. Earlier, the company had set a target of raising about $1.25 billion from the IPO, in which it proposed to raise Rs 3,750 crore from the sale of new shares and Rs 6,664 crore from Offer-for-Sale (OFS).

Now if the board approves the new proposal in its Extra Ordinary General Meeting (EGM) to be held on October 3, the total size of the IPO will increase to $ 1.4 billion. No official statement has been made by Swiggy in this regard yet. Swiggy's plan is aimed at giving tough competition to Zomato and Blinkit. Since Swiggy filed draft IPO papers in April, Zomato and Blinkit have improved their profitability significantly.

Along with this, new companies like Zepto have also recently raised $1 billion in funding, which has further increased competition in the market. At the same time, Walmart has further intensified the competition by entering the quick commerce segment through Flipkart Minutes. Swiggy's revenue has increased by 36% to Rs 11,247 crore in FY 2024, from Rs 8,265 crore in the previous financial year. Also, the company has reduced its losses by 44%. Swiggy's loss in FY 2024 was Rs 2,350 crore, while last year it was Rs 4,179 crore.

Although Swiggy's performance has been weaker than Zomato, it has reduced the gap with its rival in FY 2024. Zomato recorded a revenue of Rs 12,114 crore during this period, while Swiggy's revenue was Rs 11,247 crore. At the same time, Zomato made a profit of Rs 351 crore, while Swiggy's loss was Rs 2,350 crore.