Madhuri Dixit and Ritesh Malik Invest ₹3 Crore in Swiggy Ahead of IPO: What This Means for the Startup

In a notable move within the Indian investment landscape, renowned actress Madhuri Dixit, along with co-investor Ritesh Malik, has acquired shares in the food delivery giant Swiggy ahead of its highly anticipated Initial Public Offering (IPO) later this year. The investment, valued at ₹3 crore, sees Dixit and Malik each putting in ₹1.5 crore, making them equal shareholders in the company.

This investment comes as part of a secondary transaction facilitated by Swiggy’s investment banker, Avendus. Secondary transactions involve the purchase of shares from existing investors rather than directly from the company, providing a unique opportunity for new investors to acquire stakes in high-profile startups.

Swiggy, headquartered in Bengaluru, is gearing up for a significant $1.4 billion (₹11,664 crore) IPO, which has recently been upsized. The company has demonstrated strong financial performance, with a 36% increase in revenue from ₹8,265 crore in FY24. Additionally, Swiggy’s losses have decreased by 44%, from ₹4,179 crore to ₹2,350 crore, thanks to improved cost management.

Investment Trends and Market Dynamics

Madhuri Dixit’s entry into the Swiggy investment circle follows a similar move by Bollywood legend Amitabh Bachchan, who also bought shares in the company earlier this year. This trend highlights a growing interest among celebrities and investors in diversifying their portfolios beyond traditional investments like Zomato, which has seen impressive returns since its 2021 IPO.

The Indian food delivery market is currently dominated by a duopoly, with Zomato and Swiggy commanding approximately 90-95% of the industry. Both companies are also major players in the quick commerce sector, competing fiercely with other platforms such as Blinkit (owned by Zomato), Zepto, Tata Big Basket, and Flipkart Minutes.

Future Prospects

The ongoing interest in Swiggy's IPO reflects investor confidence in the company's potential for substantial returns. With Swiggy's valuation estimated between $9-9.3 billion during secondary transactions, the expected market capitalization could range from $10-13 billion. In comparison, Zomato's current market value exceeds $29 billion, underscoring the high stakes and competitive dynamics within the sector.

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As Swiggy prepares for its public market debut, the involvement of high-profile investors like Madhuri Dixit and Amitabh Bachchan adds significant prestige and visibility to the IPO, potentially driving further interest and investment.

Source: CNBC-TV18