New Delhi: Swiggy has ramped up its marketing and advertising expenditures, as detailed in its recently updated Draft Red Herring Prospectus (DRHP) submitted to the Securities and Exchange Board of India (SEBI).
In its earlier DRHP, Swiggy indicated plans to allocate Rs 929.5 crore from net proceeds for brand marketing. However, the latest filing reveals an increase in this budget to Rs 1,115.3 crore for advertising and promotions.
Swiggy has outlined its estimated spending on brand marketing, with Rs 61.5 crore earmarked for FY25, Rs 332 crore for FY26, Rs 359 crore for FY27, and Rs 362 crore for FY28.
The company on Wednesday announced a price band of Rs 371-390 for the IPO, which will open from November 6-8. Investors will have to subscribe to a minimum of 38 shares and in multiples of 38 thereafter.
At the upper end of the price band, it is aiming to garner up to Rs 11,330 crore from the issue, which will comprise a fresh issue of shares worth Rs 4,490 crore.
The company plans to use the proceeds to repay a debt of up to Rs 250 crore, invest in dark stores used by the quick commerce business, investments in technology and cloud infrastructure, branding and also for acquisitions, as per the red herring prospectus filed with the market regulator.
Insights from web sources indicate that Swiggy's ad spend saw a 26% drop to Rs 1,850 crore in FY2024.
The company's approach includes leveraging traditional advertising, search engine optimisation, social media marketing, email campaigns, and in-app advertisements.
The food delivery app Swiggy has launched a Rs 11,330-crore initial share sale. It will make Swiggy the second major food delivery app after Zomato to go public.
Just like its peer Zomato, the company is also experiencing faster growth in its quick commerce business and the newest addition already contributes 40% to the revenues of the company, a senior official said, adding that it sees this space overtaking the legacy food delivery business soon because of the higher growth in it.
The company management said its growth is primed on the changing consumption patterns, especially among Gen Z, and added that it is hoping to beat the market growth for many years.