Swiggy, one of India’s leading food delivery platforms, is set to make its stock market debut, marking a significant milestone in the country’s thriving food delivery startup ecosystem.
Swiggy’s upcoming Initial Public Offering (IPO) may garner interest due to the food delivery startup’s impressive growth trajectory and its pivotal role in shaping the online food delivery sector.
This article will give you a detailed analysis of the Swiggy IPO by exploring Subscription Details, Opening Date, and Opportunities for investors.
*Data as of 08-05-24
What is Swiggy?
Swiggy is an online food delivery platform that was founded in 2014. It ranks as one of the two top food delivery startups in India along with Zomato, a company that went public in 2021.
Swiggy partners with a wide range of restaurants, providing easy access to diverse food dishes in over 500 Indian cities.
Beyond food delivery, Swiggy also offers on-demand grocery deliveries under the name Instamart, and a same-day package delivery service called Swiggy Genie.
While choosing to stay put during the IPO boom during the COVID-era, the food delivery startup is expected to launch its bid to go public soon.
As per various reports, Swiggy has got the green signal from internal shareholders for a $1.25 billion or ₹10,436.25 crore public listing.
Swiggy IPO Subscription Details
Here are some details about Swiggy’s IPO subscription:
| Detail | Information |
| Status | Planned for 2024 |
| Expected Launch Date | TBD |
| Offer Size | TBD |
| Min Investment | TBD |
| Listing Exchange | TBD |
Please note that the exact details about the Swiggy IPO price and launch date will be known after the company files the DRHP with Sebi.
Swiggy IPO Opening Date
The IPO date of Swiggy is yet to be announced. Once the company files for DRHP with SEBI, those details will be declared.
However, it is likely to be in the second half of 2024.
The change from Swiggy Limited to Swiggy Private Limited in the food delivery sector aligns with typical steps companies take before an IPO.
Earlier this year, Swiggy’s parent company, Bundl Technologies Pvt Ltd, also rebranded to SWIGGY Pvt Ltd.
Though Swiggy has not officially confirmed its IPO plans, recent market anticipation suggests otherwise.
Reports indicate that Swiggy, a prominent player in India’s food delivery scene, is likely to initiate its IPO by the year-end.
Valued at over US$12 billion, Swiggy is expected to submit a preliminary list of shareholders to SEBI, the market regulator, in the coming months.
The IPO price and launch date will be disclosed after the submission, detailing the number of shares offered and other relevant components.
By the way, Zomato became one of the largest companies to go public in India. You can read all about it here: Top 10 Biggest IPOs in India
Swiggy Financials
Here is a summary of Swiggy’s financials based on the information available:
| Financial Year | Total Income (in Rs. Lakhs) | Profit/Loss After Tax (in Rs. Lakhs) | Total Expenses (in Rs. Lakhs) | Net Margin |
| 2021 | 2,14,500 | -1,31,160 | 3,31,050 | -61.24% |
| 2022 | 4,04,620 | -3,76,810 | 6,74,090 | -93.13% |
| 2023 | 5,36,130 | -3,75,760 | 8,88,600 | -70.09% |
Benefits of Investing in Swiggy IPO
Investing in Swiggy’s IPO could have several potential benefits:
- Business Expansion: Swiggy is planning to raise new funds for business expansion. The company aims to establish itself as a logistics company rather than just a food delivery platform.
- Market Presence: Swiggy has a strong market presence and has been rapidly expanding. This could potentially lead to increased revenues and profitability in the future.
- Innovation: Swiggy leverages AI and machine learning to optimize delivery routes, personalized recommendations, and enhance user experience.
- Revenue Growth: Swiggy has seen impressive revenue growth in the past few years. From ₹5,705 crore in FY22 to ₹8,625 crore in FY23, it saw a 45% jump.
Risks of Investing in Swiggy IPO
Investing in Swiggy’s IPO, like any investment, comes with its own set of risks. Here are some potential risks and concerns to consider:
- Competition: Swiggy’s competitor, Zomato, is constantly innovating and pushing for market share.
- Market Conditions: The stock market has gone into a backdrop that has negatively impacted the top companies.
- Public Scrutiny: When a company goes public, it faces heightened scrutiny from both investors and regulators. Swiggy must show robust financial performance and maintain transparency to meet these demands.
- Operational Risks: Swiggy operates in a complex and rapidly changing business environment. Any operational mishaps or inability to adapt to changes could impact its business.
Swiggy Vs Zomato
Here’s a comparison table for Swiggy and Zomato based on various parameters:
| Parameters | Swiggy | Zomato |
| Type of Company | Private | Public |
| Headquarters | Bangalore, India | Gurgaon, India |
| Founded in | July 2008 | July 2014 |
| Revenue | Around ₹8,264.6 crore (As of 2023) | Around ₹3,507 crore (As of 2023) |
| Founders | Sriharsha Majety, Nandan Reddy, Rahul Jaimini | Deepinder Goyal, Pankaj Chaddah |
| Market Presence | Major cities across India | Global presence |
| Additional Services | Restaurant discovery and table booking through a partnership with Dineout | Restaurant discovery, table booking |
| Grocery Delivery | Yes, through Swiggy Instamart | Yes, via Blinkit |
| Platform Fee | ₹3 per order | ₹5 per order |
Conclusion
Swiggy’s IPO is a big event for the start-up ecosystem. This IPO is an opportunity for people to invest in an emerging business, but that comes with certain risks as with any IPO. Thus, you must analyze all available details and the DRHP before making an informed decision.
