Citigroup Disposes of Swiggy Equity Worth INR 12.2 Crore, Indicating a Shift in Priorities for the Food Delivery Service and a Reorganization among Investors

Citigroup Disposes of Swiggy Equity Worth INR 12.2 Crore, Indicating a Shift in Priorities for the Food Delivery Service and a Reorganization among Investors

In a significant move for the Indian foodtech industry, Citigroup Global Markets, the brokerage and investment banking arm of US-based Citigroup Inc., has sold its stake in Swiggy to the investment unit of French banking major BNP Paribas. The deal, worth INR 12.2 crore, was executed through bulk deal mechanisms on a stock exchange.

Each share was sold at INR 381, reflecting a notable shift in foreign institutional interest in Swiggy. This transaction comes amidst a decline in foreign institutional holdings in the company, with foreign institutions reducing their stake from 4.90% to 4.52% during the May 2025 quarter.

The news was announced by Swiggy itself, who also revealed their intention to wind down their non-core services, such as the Minis platform, which has not been visible on the main Swiggy app for over a year. This move suggests that Swiggy is refocusing on its core operations amid internal restructuring, possibly in response to the pressure from investors who are recalibrating their positions in anticipation of Swiggy’s potential public offering.

In the quarter ending March 31, 2025, Swiggy reported revenue of INR 4,410 crore but posted a loss of INR 1,081 crore. Food delivery accounted for 37% of Swiggy's total revenue, with quick commerce contributing the rest. This loss, despite strong revenue, highlights mounting pressure on profitability within the company.

The impact of this declining foreign institutional interest is visible in Swiggy’s financials. The company's Q4 FY 2025 results show a revenue of INR 4,410 crore but a significant loss of INR 1,081 crore. This loss, despite strong revenue, underscores the mounting pressure on profitability within the company.

The stock price gained briefly post-block deal but has been overall volatile, reflecting the cautious sentiment among investors. However, it is important to note that this transaction does not necessarily indicate a complete exit of foreign investors from Swiggy, but rather a rebalancing among them.

In summary, the sale of Citigroup's stake in Swiggy to BNP Paribas marks a significant shift in foreign institutional interest in the Indian foodtech company. This shift, coupled with Swiggy's financial performance and strategic moves, suggests a complex and evolving landscape for the company as it navigates internal restructuring and prepares for potential public offerings.

[1] Our Brand Name Staff, "Citigroup Sells Stake in Swiggy to BNP Paribas," [News Outlet], [Date of Publication]. [2] Our Brand Name Staff, "Foreign Institutional Holdings in Swiggy Decline," [News Outlet], [Date of Publication]. [3] Our Brand Name Staff, "Swiggy Q4 FY 2025 Results: Revenue INR 4,410 Crore, Loss INR 1,081 Crore," [News Outlet], [Date of Publication]. [4] Our Brand Name Staff, "Swiggy Winds Down Minis Platform," [News Outlet], [Date of Publication].

1. The transfer of Citigroup's investment in Swiggy to BNP Paribas, coupled with the diminishing foreign institutional holdings in the company, indicates a shift in finance strategies for Swiggy, potentially influencing their business operations and future investment decisions.
2. As Swiggy restructures internally and prepares for potential public offerings, the finance landscape for the Indian foodtech company appears to be evolving, with the sale of Citigroup's stake to BNP Paribas being a significant step in this process.

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