Swiggy Ltd

Swiggy Ltd IPO

IPO Price Range: ₹371 - 390

Swiggy, India’s leading hyperlocal platform, plans to raise over $1.35 billion through its IPO, seeking an $11 billion valuation. The asking valuation equates to ₹7.8 for every ₹1 in sales, compared to Zomato’s ₹13.8. Swiggy processes 1.58 million food orders and 482,000 Quick Commerce orders daily, translating to 1,433 orders per minute. In FY2024, Swiggy’s food delivery segment achieved a Gross Order Value of ₹247 billion, while Instamart generated ₹80 billion. The IPO funds will drive its growth in India’s hyperlocal market, expected to expand at a 17-60% CAGR by 2028.

Min Investment

₹14,820

IPO Size

₹11,327 Cr

IPO Status

Closed

Quantity in 1 Lot

38

Max Bid allowed

13

Listing Exchange

NSE

IPO Application Timeline of Swiggy Ltd

Open Date6 Nov 2024
Close Date8 Nov 2024
Allotment Date11 Nov 2024
Listing Date13 Nov 2024

IPO subscribed over

🚀 3.59x

This IPO has been subscribed by 1.14x in retail and 6.02x in QIB.

Subscription Rate

Total Subscription3.59x
Retail Individual Investors1.14x
Qualified Institutional Buyers6.02x
Non Institutional Investors0.41x

Key Statistics

Bid Opening DateBid Opening Date6 Nov 2024
Bid Closing DateBid Closing Date8 Nov 2024
Allotment DateAllotment Date11 Nov 2024
Issue SizeIssue Size₹11,327.43Cr
Quantity in 1 lotQuantity in 1 lot38

Brands, Products & Services

ProductFood Delivery & Quick Commerce App
Known ForOnline food & grocery ordering and hyperlocal pick-up & deliveries.
Top ProductsSwiggy- On-demand food delivery,Instamart- Quick grocery delivery,Dineout- Restaurant reservations,Swiggy One- Subscription offering for extra offers & free deliveries.

Swiggy Ltd Key Financials

*Value in ₹ crore
*Value in ₹ crore
*Value in ₹ crore
*Value in ₹ crore
*Value in ₹ crore
Details202220232024
Total Revenue6119.778714.4511634.34
Total Assets14405.7311280.6410529.42
Total Liabilities2138.822224.032737.96
Total Profit-3628.89-4179.3-2350.24

Objectives of the IPO

1
Debt Repayment: ₹1,648 million to reduce debt for Scootsy, a Swiggy subsidiary, improving its debt-equity ratio and operational flexibility.
2
Expansion of Dark Stores: ₹7,554 million for Quick Commerce growth, focused on setting up new dark stores for Instamart across key cities.
3
Technology and Cloud Infrastructure: ₹7,034 million to strengthen Swiggy’s tech stack and cloud operations, enhancing scalability and user experience.
4
Brand Marketing: ₹11,153 million to boost brand visibility across media, including TV, digital, and print.

Key Stakeholders Selling Shares

Name of SellerSeller Type% of Stake SoldNo. of shares sold
Rahul VermaPromoter10%10,000
Shivam VermaPromoter10%10,000

Management Team And Directors

Sriharsha Majety
MD & CEO
  • Background in technology and entrepreneurship, with a focus on scaling tech-driven businesses.

Qualifications
Bachelor's in Engineering (Electrical Engineering) from BITS Pilani, MBA from IIM Calcutta.
Contributions
Led Swiggy's transformation into India's largest food delivery platform and expanded its offerings to include grocery delivery and other convenience services like Instamart and Genie.

Strength and risks

Strength

Strength

  • 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.


Risk

Risk

  • 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.

About Swiggy Ltd

OrganisationSwiggy Ltd
HeadquartersBangalore, India
IndustryOnline Food Delivery

Frequently Asked Questions

  • What is the size of the Swiggy Ltd IPO?

    The size of the Swiggy Ltd IPO is ₹11,327.43Cr .

  • What is 'pre-apply' for Swiggy Ltd IPO?

    'Pre-apply' for Swiggy Ltd IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.

  • When will my Swiggy Ltd IPO order be placed?

    Your Swiggy Ltd IPO order will be placed on 6 Nov 2024.

  • What are the open and close dates of the Swiggy Ltd IPO?

    The open and close dates of the Swiggy Ltd IPO are 6 Nov 2024 to 8 Nov 2024.

  • What is the lot size and minimum order quantity of the Swiggy Ltd IPO?

    The lot size and minimum order quantity of the Swiggy Ltd IPO are 38 and 38 respectively.

  • What would be the listing gains on the Swiggy Ltd IPO?

    The potential listing gains on the Swiggy Ltd IPO will depend on various market factors and cannot be predicted with certainty.