Swiggy’s $1.1 billion share sale sees demand from Temasek, top funds

Group 1: Investment and Fundraising - Global investors, including Singapore's Temasek Holdings and Capital Group, are bidding to buy shares in Swiggy Ltd as the company seeks fresh funds a year after its market debut [1] - India's top asset managers, such as SBI Funds Management, ICICI Prudential, and HDFC Asset Management, participated in the $1.1 billion offering, alongside global investors like Fidelity Investments, BlackRock, and Nomura [2] - The share bids are clustered around ₹375 ($4.2) per share, representing a 6.8% discount to Swiggy's last closing price of ₹371 [3] Group 2: Market Context and Competition - The fundraising highlights the rapid expansion of the Indian e-commerce market amid increasing demand, with grocery delivery firms prioritizing growth over margins [4] - Swiggy's stock has declined 25% this year, contrasting with a 9% gain in the benchmark NSE Nifty 50 Index, indicating competitive pressures in the market [4] - Local players are competing against Amazon and Walmart-backed Flipkart to establish extensive networks of neighborhood warehouses and ultra-fast delivery fleets [5] Group 3: Use of Proceeds - In the share sale, Swiggy offered approximately 269.5 million shares, with proceeds intended for expanding and operating its network, including dark stores and warehouses [6] - Swiggy plans to invest in technology and cloud infrastructure, as well as pursue growth opportunities through potential acquisitions [6]