Madhuri Dixit has bought the shares of food delivery giant Swiggy ahead of its close to $1.5 billion IPO scheduled later this year, Moneycontrol reported, citing unidentified sources. HT couldn’t independently verify the information.
Dixit, along with Ritesh Malik, founder of Innov8, a co-working space player (Now owned by Oyo), bought the shares worth ₹3 crore from the secondary market, paying ₹1.5 crore each ( ₹345 per share), according to the report, which added that the transaction was facilitated by Swiggy’s investment banker Avendus.
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What does it mean to buy shares from the secondary market?
A secondary market transaction is when an investor sells their shares to another investor or a company directly without the company whose shares are being sold being involved.
This news comes after actor Amitabh Bachchan bought Swiggy shares in August, looking to diversify beyond Zomato.
India’s food delivery market is currently a duopoly featuring the Bengaluru-based Swiggy and the Gurugram-based Zomato, with a combined market share of about 90-95%.
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Zomato’s Blinkit and Swiggy’s Instamart also compete in quick commerce against Zepto, Tata Big Basket, Flipkart Minutes and others.
Swiggy is valued at around $9-9.3 billion while the already listed Zomato is worth over $29 billion.
Zomato’s shares have jumped over 120% on a year-to-date (YTD) basis since its listing in 2021.
Swiggy’s revenue was up 36% to ₹11,247 crore in the financial year 2023-24, while its losses were down 44% to ₹2,350 crore. Meanwhile, Zomato’s revenue was ₹12,114 crore and it made a ₹351 crore profit in the same timespan.
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