Hindustan Composites Follows Big B’s Family Office in Investing in Swiggy

The auto ancillary company Hindustan Composite has purchased a minority share in the online food delivery company Swiggy, which is planning to go public shortly. In the days that followed the acquisition of a minority investment in the Bengaluru-based company by Amitabh Bachchan's family office, this new development has taken place.

According to a disclosure that was submitted through the National Stock Exchange (NSE), the board of directors of Hindustan Composite has struck an agreement with Swiggy to acquire 1,50,000 equity shares, which will result in an investment of INR 5.17 crore.

The report went on to state that as of March 2023, Swiggy's net value was an impressive INR 9,810 crore, which is equivalent to $1.18 billion. To gain both short-term and long-term benefits, Hindustan Composite intends to complete this minor acquisition by the 30th of November in the year 2024.

Swiggy Planning to Raise INR 3,750 Crore via a Fresh Issue

In May, Swiggy submitted documents for an initial public offering (IPO) through a confidential process. With the help of a new issue of equity shares and an offer for sale of up to an aggregate sum of INR 6,664 crore ($800 million), the company would be able to raise a maximum of INR 3,750 crore ($450 million) through its first public offering. Media sources indicate that the company will shortly submit draft initial public offering documents to SEBI.

In July, Swiggy further launched its sixth employee stock ownership plan (ESOP) liquidity program, which had a total value of $65 million. It claims to have permitted over INR 1000 crore worth of ESOPs liquidity throughout five events, which benefited three thousand and two hundred employees.

In addition, the company that is supported by Prosus strengthened its leadership team by appointing new chief executive officer (CEO) and chief operating officer (COO) positions in the first week of November.

In the first three quarters of the fiscal year 24 (FY24), Swiggy's revenue was INR 5,476 crore, while the company suffered a loss of INR 1,600 crore. It has not yet submitted audited results for FY24.

According to the data provided by the stock exchange, the competitor of Swiggy, Zomato, is currently valued at $28.3 billion. During the first three months of fiscal year 24 (FY24), the company that is run by Deepinder Goyal reported a revenue of INR 4,206 crores and a profit of INR 253 crores.

Swiggy Business Model | How Does Swiggy Make Money

Swiggy is one of the top food aggregator in India. Lets have an insight into its business model and revenue model to understand the reason behind its success.

StartupTalkyNitin Konde

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