Swiggy IPO Analysis: Know Key Details Before You Apply

Findoc
4 min readOct 29, 2024

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Source: Findoc

Swiggy, one of India’s largest consumer-focused platforms, is set to launch its Initial Public Offering (IPO). Before applying, review these details to understand what this offering involves. This article gives an overview of Swiggy’s IPO, highlights of the company, its main strengths, and potential risks.

Swiggy IPO Details

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Swiggy IPO Dates

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Swiggy’s IPO issue size is around ₹12,750 crore. This includes a fresh issue of ₹4,500 crore and an Offer for Sale (OFS) of ₹8,250 crore. The expected price per share is ₹395, targeting a market cap of ₹95,000 crore upon listing. The IPO will tentatively open on November 6, close on November 8, and list on November 13.

About Swiggy

Founded in 2014, Swiggy has grown into one of India’s largest online food delivery platforms. The app allows users to browse, order, and pay for food easily. Beyond food delivery, Swiggy offers services like:

  • Instamart: Quick-commerce delivery for groceries and household items.
  • Dineout: Restaurant reservation platform.
  • SteppinOut: Booking for events and experiences.
  • Swiggy Genie: Hyperlocal pick-up and drop-off service.
  • Swiggy Minis: Smaller hyperlocal commerce activities.

As of June 30, 2024, Swiggy served 112.73 million users and employed over 5,400 people. It operates with a strong delivery partner network across multiple cities and has 605 dark stores supporting Instamart as of September 2024.

Things to Know Before Applying for Swiggy IPO

Peer Details:

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Strengths of the Company

1. Versatile Platform

Swiggy’s platform covers services beyond food delivery. It offers grocery delivery, event bookings, and restaurant reservations, attracting more revenue streams and a wider audience.

2. Growing User Base

Swiggy reached over 112.73 million transacting users by mid-2024. This large base allows Swiggy to use data for targeted marketing.

3. In-App Payment Options

Swiggy offers payment choices like Swiggy Money, Swiggy UPI, and a co-branded credit card with HDFC Bank. These options give customers added discounts and benefits.

4. Revenue Growth

Swiggy’s revenue rose from ₹5,704.90 crore in FY22 to ₹8,264.60 crore in FY23, and ₹11,247.39 crore in FY24, showing steady demand growth.

5. Technology-Driven Operations

Swiggy uses analytics to personalize recommendations and improve delivery routes, reducing last-mile delivery times and enhancing the user experience.

Risks Related to the Company

1. Ongoing Losses

Swiggy has posted annual losses since its inception. In FY24, it reported a loss of ₹2,350.24 crore, improving from ₹4,179.30 crore in FY23. Swiggy’s path to profitability remains unclear, which could affect investor interest.

2. Reliance on Delivery Partners

Swiggy relies on delivery partners but lacks exclusive contracts with them. Partner shortages or retention issues could disrupt its operations.

3. Challenges in Retaining Partners

Swiggy’s success depends on restaurant, merchant, and brand partners. High turnover or rising costs to retain these partners may impact financial performance.

4. Challenges in Quick Commerce

Swiggy’s quick commerce service Instamart depends on factors like dark store location and density. Inefficient operations may lead to higher costs and reduced profitability.

5. Legal and Regulatory Risks

Swiggy, along with its subsidiaries and some directors, faces ongoing legal cases. Negative rulings could impact the company’s financial position and reputation.

6. Debt Obligations

Swiggy’s debt stood at ₹255.58 crore as of July 31, 2024. Inability to service this debt could affect financial stability.

Financial Information of the Company

Conclusion

Swiggy’s IPO offers an opportunity to invest in high-growth sectors like online food delivery and quick commerce. The company’s strengths include a diverse platform, strong revenue growth, and tech-driven operations. However, investors should weigh risks like profitability, reliance on delivery partners, and challenges in a competitive market.

Before applying for any IPO, it is essential to evaluate these risks and follow the latest developments.

Article originally published at: https://www.findoc.com/blog/swiggy-ipo-issue-date-price-size-key-details

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Findoc
Findoc

Written by Findoc

Established in 2010, Findoc is an online share market trading & investment company in India allowing users to invest in Stocks, IPO, Futures, Options & more.

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