Prosus sold Swiggy shares worth more than $500 million (R8.99 billion) as part of the successful IPO of the India-based on-demand convenience platform yesterday, the second largest listing in that country this year.
In the IPO, the Bombay Stock Exchanges of India (BSE) valued Swiggy at $11.3 billion (R203.4bn). Amsterdam-based and JSE listed Prosus, 43% owned by Naspers, has been a major investor in Swiggy since 2017 and will be left with 25% of the India company after the IPO, with two seats on the board.
Prosus CEO Fabricio Bloisi said they had supported the Swiggy management team since Naspers’ first investment in 2017 with a 31% stake, and have seen the company flourish in the post-pandemic era.
Swiggy listed its shares at ₹390 (R82.83) per share during its IPO. The shares debuted at ₹420 on the NSE (National Stock Exchange of India) and ₹412 on the BSE, a premium of 7.69% and 5.64% respectively over the issue price.
“It has diversified into new areas, expanded into new cities, and built an iconic consumer brand – placing Swiggy on a strong trajectory as a public company. Our investment in Swiggy highlights our commitment to building transformational companies and delivering returns for our shareholders by actively managing our portfolio,” said Bloisi.
He said India was a key growth market for Prosus given the country’s impressive digital transformation in the consumer and enterprise sectors.
“We…see huge opportunity for value creation including a strong IPO pipeline within our current portfolio,” he said.
Swiggy’s listing comes shortly after the company passed a milestone of more than 110 million total transacted users since its launch in 2014. Swiggy delivered a 26% year-on-year increase in gross order value to $4.2bn in the 2024 financial year.
Swiggy connects consumers to more than 220 000 restaurant partners and stores in more than 680 cities in India, and its quick-commerce network has expanded to 605 stores across 43 cities.
Swiggy CEO and co-founder Sriharsha Majety said in a statement: “The Prosus team has been an invaluable partner in our journey to this milestone, supporting us at every stage. Their unwavering belief in our vision has played a pivotal role in the success of both our food and 1P delivery platforms, as well as the quick commerce industry we championed in the country.”
Prosus is a leading investor globally in the food delivery sector, having invested more than $10bn in companies operating across more than 70 countries. Brazilian market leader iFood, the largest food delivery company in Latin America, and Germany-listed global player Delivery Hero sit alongside Swiggy in Prosus’s food delivery portfolio. Prosus also holds a 4% stake in Meituan, the largest food delivery company globally.
Prosus’ other investments in India are the digital payments and financial services provider PayU, the online place for marketers Meesho, edtech company Byju’s, home and professional services platform Urban Company and healthcare company PharmEasy.
Prosus’ share price fell 0.95% to R725.26, leaving the price 23% higher than at the same time a year before.
BUSINESS REPORT