Swiggy Ltd IPO

Expanding User Base: Swiggy reached over 112 million transacting users in 2024, supported by its unified app and extensive partner network, driving a steady increase in Average Order Value (AOV) and sales growth.

Diverse Service Offerings: Swiggy provides a wide range of services, including Food Delivery, Quick Commerce (Instamart), parcel delivery (Swiggy Genie), and dining reservations (Dineout), driving higher user retention and cross-service engagement.

Operational Scale: Swiggy processes 1.58 million food orders and 482,000 Quick Commerce orders daily, averaging 1,433 orders per minute, showcasing Swiggy’s infrastructure strength and capacity to meet high demand.

Delivery Efficiency: Swiggy's logistics network achieves an average delivery time of just 12.6 minutes for Quick Commerce, a competitive advantage in a market driven by convenience.

Competitive Valuation: Swiggy’s IPO valuation equates to ₹7.8 per ₹1 of sales, more favorable than Zomato’s ₹13.8 per ₹1 of sales, potentially attractive to investors.

Strong Growth Potential: With the Indian food delivery and Quick Commerce markets projected to grow at a 17% and 60% CAGR, respectively, by 2028, Swiggy is well-positioned for expansion in an accelerating industry.

Consistent Losses: Swiggy has reported yearly losses since inception, driven by high costs in marketing, employee benefits, and delivery operations.

High Competition: Competes against Zomato and ONDC, risking growth and market share due to price wars and customer attrition.

Profitability Concerns in Quick Commerce: Quick Commerce, which reached ₹80 billion in FY2024, remains unprofitable, adding complexity and costs.

Reliance on Third-Party Payments: Dependence on external payment providers introduces risks in fees, compliance, and potential disruptions.

Operational Complexity: Managing and scaling from 1.58 million food orders and 482,000 Quick Commerce orders daily adds significant logistical costs.