{"id":36318,"date":"2024-04-26T17:17:28","date_gmt":"2024-04-26T17:17:28","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/26\/swiggys-confidential-ipo-filing-blinkits-rising-valuation\/"},"modified":"2024-04-26T17:17:28","modified_gmt":"2024-04-26T17:17:28","slug":"swiggys-confidential-ipo-filing-blinkits-rising-valuation","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/26\/swiggys-confidential-ipo-filing-blinkits-rising-valuation\/","title":{"rendered":"Swiggy\u2019s confidential IPO filing; Blinkit\u2019s rising valuation"},"content":{"rendered":"
\"Swiggy\u2019s<\/div>


\n<\/p>\n

Swiggy has confidentially filed its draft IPO papers with the capital markets regulator. Details on this and more in today\u2019s ETtech Top 5.<\/p>\n

Also in this letter:<\/span>
\u25a0 Lenskart\u2019s revenue jumps in FY23
\u25a0 HCLTech, Mphasis Q4 results
\u25a0 Capria closes India Opportunity Fund<\/p>\n

\n

Swiggy confidentially files draft papers for $1.25 billion IPO<\/p>\n

<\/div>\n

Sriharsha Majety, MD & group CEO, Swiggy<\/em><\/p>\n

Food and grocery delivery company Swiggy has taken the confidential route to file draft papers<\/a> for an initial public offering (IPO) with the Securities and Exchange Board of India (Sebi), people in the know told us.<\/p>\n

Tell me more:<\/span> Under the confidential route, Swiggy will not have to publicly release its draft red herring prospectus ( DRHP). Responding to ET, a Swiggy spokesperson said, \u201cWe do not comment on any market speculation or rumours.\u201d<\/p>\n

\"Key<\/div>\n

By the numbers:<\/span> The company, which received shareholders\u2019 nod for a $1.25 billion public listing <\/a>earlier this week, proposes to raise Rs 3,750 crore ($450 million) in fresh capital and up to $800 million in the offer-for-sale component, we reported earlier.<\/p>\n

Swiggy is also looking to pick up about Rs 750 crore from anchor investors in a pre-IPO round.<\/p>\n

Also read | <\/span>Prosus may have promoter tag in Swiggy IPO<\/a><\/p>\n

Comparison with Zomato:<\/span> Swiggy’s main rival Zomato, which listed in 2021, had a market capitalisation of nearly $20 billion on Friday.<\/p>\n

\"swiggy<\/div>\n

As per a Reuters report, Swiggy recorded a loss of around Rs 1,730 crore<\/a> for the nine months ending December 2023, while revenue stood at Rs 8,490 crore. In the same period, Zomato reported a consolidated operating revenue of Rs 8,552 crore.<\/p>\n

Besides food delivery, the two companies compete in the fast-growing quick-commerce segment. While Zomato owns Blinkit, Swiggy operates Instamart.<\/p>\n

Also read |<\/span> FirstCry to refile IPO papers post Sebi order<\/a><\/p>\n

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Blinkit tops food delivery in Zomato market cap: Goldman Sachs<\/p>\n

\"Zomato<\/div>\n

Quick commerce platform Blinkit\u2019s contribution to parent Zomato\u2019s market value<\/a> has surpassed that of the mainstay food delivery business, according to a Goldman Sachs report.<\/p>\n

Key numbers: <\/span>The implied value of Blinkit, which Zomato acquired in 2022 for around $570 million, is Rs 119 per share, compared with Rs 98 a share for the food delivery business.<\/p>\n

This translates to a contribution of $13 billion by Blinkit to Zomato’s value, up from $2 billion in March 2023, as per the report.<\/p>\n

\"quick<\/div>\n

Goldman Sachs expects Blinkit\u2019s gross order value and earnings before interest, taxes, depreciation and amortisation (Ebitda) to be higher than that of food delivery by fiscal 2029. It sees the food delivery business growing at 15-20% on year in the foreseeable future. <\/p>\n

Target price raised:<\/span> The global brokerage maintained its \u2018Buy\u2019 rating on Zomato and raised the target price to Rs 240 from Rs 170 earlier.
<\/a>
Following the upgrade, Zomato shares rose 3% to Rs 190.4 during Friday’s trading session on the BSE, before closing at Rs 188, up 1.84%.<\/p>\n

Quick recap: <\/span>In March, Zomato chief executive Deepinder Goyal said that Blinkit could become bigger than the food delivery business <\/a>in a year.<\/p>\n

On April 17, ET reported, citing a report by HSBC Global Research, that Blinkit\u2019s market share rose from 32% in March 2022 to 40%<\/a> in January 2024. In the same period, Instamart\u2019s market share fell from 52% to 32%, while Zepto\u2019s increased from 15% to 28%.<\/p>\n

Also read | <\/span>Zomato Q3 profit skyrockets 283% QoQ to Rs 138 crore<\/a><\/p>\n

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Lenskart revenue jumps to Rs 3,788 crore in FY23; trims losses to Rs 102 crore<\/p>\n

\"Peyush<\/div>\n

Peyush Bansal, cofounder and CEO, Lenskart<\/em><\/p>\n

Omnichannel eyewear retailer Lenskart saw its consolidated operating revenue more than double to Rs 3,788 crore<\/a> in FY23 from Rs 1,502 crore a year earlier. The Gurugram-based company reduced its losses from Rs 102 crore in FY22 to Rs 64 crore in FY23.<\/p>\n

Rising expenses: <\/span>Total expenses also increased in line with the company\u2019s growing scale, coming in at Rs 4,025 crore in FY23 compared to Rs 1,726 crore in the year-ago period. A significant part of the expenditure was attributed to the cost of materials consumed, amounting to Rs 1,132 crore, along with other expenses totalling Rs 1,438 crore.<\/p>\n

More numbers: <\/span>Lenskart has been profitable on a standalone basis, posting a net profit of Rs 138 crore in FY23, a 25-fold jump from the previous fiscal. Standalone operating revenue stood at Rs 2,375 crore.<\/p>\n

Notwithstanding the loss on a net basis, Lenskart reported Ebitda of Rs 404 crore in FY23, compared to Rs 1 crore in the previous fiscal.<\/p>\n

Going global:<\/span> Lenskart operates around 1,500 retail outlets in India, apart from its online platform. In December 2023, ET reported<\/a> that Lenskart is planning to open 300-400 stores in Southeast Asia over the next two years. As of December, the company had 70 stores in Singapore, and plans to expand into Thailand and the Philippines.<\/p>\n

Recap: <\/span>On Thursday, ET reported<\/a> that Singapore\u2019s Temasek and US-based asset manager Fidelity are in advanced discussions to invest around $200 million in Lenskart through a secondary share sale at a valuation of about $5 billion. Lenskart is estimated to have closed FY24 with a revenue of Rs 5,500 crore, but audited financials are yet to be filed with the Registrar of Companies.<\/p>\n

\n

HCLTech Q4 net profit rises marginally to Rs 3,995 crore<\/p>\n

\"HCL\"<\/div>\n

HCL Technologies reported a net profit of Rs 3,995 crore<\/a> for the quarter ended March 31, 2024, a marginal uptick of 0.35% against Rs 3,981 crore reported in the year-ago period. The board announced an interim dividend of Rs 18 per share. Let\u2019s dive in with all the details.<\/p>\n

Marginal revenue uptick:<\/span> The consolidated revenue from operations was reported at Rs 28,499 crore, up 5.3% from Rs 27,059 crore in Q4FY23. In constant currency (CC) terms, revenue for the reported quarter was up 0.3% QoQ and 6.0% year-on-year (YoY). Meanwhile, the USD revenue was reported at $3,430 million, up 0.4% QoQ and 6% YoY.<\/p>\n

The profit after tax was down 8% on a quarter-on-quarter basis versus Rs 4,351 crore reported in the October-December period.<\/p>\n

Segment-wise revenue:<\/span> Services CC revenue increased by 3% on quarter and 6.7% compared to a year ago, with notable growth in telecommunications, media publishing and entertainment. The digital segment CC revenue was up by 6.3% on year, contributing 37.1% of services.<\/p>\n

Other key takeaways:<\/span> <\/p>\n