Founded in 2014, Swiggy has emerged as a leader in India’s on-demand delivery market. Its user-friendly app connects millions to food delivery services, while also offering groceries and logistics. With a strong focus on innovation and convenience, Swiggy has established a significant presence in urban areas across India. As part of its growth strategy, Swiggy is preparing for an Initial Public Offering (IPO) in November 2024, giving investors an exciting opportunity to be part of its continued success.
This IPO presents a valuable opportunity for investors interested in a strong, innovative brand. Maximizing this opportunity, whether via a web trading platform or another method, is essential.
Swiggy’s Upcoming IPO: Key Details
Swiggy’s IPO is set to open from November 6 to November 8, 2024, with a total issue size of ₹11,327.43 crores. The offer includes a fresh issue of ₹4,499 crores and an offer for sale amounting to ₹6,828.43 crores.
| IPO Information | Details |
| IPO Dates | November 6 – 8, 2024 |
| Listing Date | November 13, 2024 |
| Face Value | ₹1 per share |
| Price Band | ₹371 to ₹390 per share |
| Lot Size | 38 Shares |
| Total Shares Offered | 290,446,837 shares |
| Fresh Issue | 115,358,974 shares |
| Offer for Sale | 175,087,863 shares |
| Employee Discount | ₹25 per share |
| Issue Type | Book Built Issue IPO |
| Listed On | BSE, NSE |
| Pre-Issue Shareholding | 2,123,066,748 shares |
| Post-Issue Shareholding | 2,238,425,722 shares |
One of the easiest ways to get started is by opening an online Demat account. Numerous platforms allow users to open free Demat account without hassle
Who is Swiggy?
Swiggy operates as a consumer-centric technology company, delivering a wide range of services through a single app interface. Users can access food delivery, grocery services, restaurant reservations, event bookings, and more through Swiggy’s various offerings, such as Food Delivery, Instamart, and Dineout.
Since its inception, Swiggy has pioneered hyperlocal commerce in India. It launched its food delivery service in 2014, followed by the introduction of quick commerce in 2020. The “Swiggy One” membership program offers users various discounts, while payment options like “Swiggy Money” and Swiggy UPI ensure seamless transactions.
Financial Overview
Swiggy’s financial health is crucial for prospective investors. Here’s a look at its performance over the last few years:
| Financial Metrics | 30 June 2024 | 31 March 2024 | 31 March 2023 | 31 March 2022 |
| Total Assets | ₹10,341.24 Cr | ₹10,529.42 Cr | ₹11,280.65 Cr | ₹14,405.74 Cr |
| Revenue | ₹3,310.11 Cr | ₹11,634.35 Cr | ₹8,714.45 Cr | ₹6,119.78 Cr |
| Profit After Tax (PAT) | -₹611.01 Cr | -₹2,350.24 Cr | -₹4,179.31 Cr | -₹3,628.90 Cr |
| Net Worth | ₹7,444.99 Cr | ₹7,791.46 Cr | ₹9,056.61 Cr | ₹12,266.91 Cr |
| Reserves and Surplus | -₹7,750.85 Cr | -₹7,880.85 Cr | -₹6,510.34 Cr | -₹3,311.10 Cr |
| Total Borrowing | ₹256.61 Cr | ₹211.19 Cr | – | – |
- Revenue Growth: Swiggy’s revenue has shown impressive growth, rising from ₹6,119.78 crores in FY 2022 to ₹11,634.35 crores in FY 2024, representing a 34% increase year-on-year.
- Net Losses: Although Swiggy has reported losses, there is a positive trend in reducing those losses, down from ₹4,179.31 crores in FY 2023 to ₹611.01 crores in June 2024.
- Profit After Tax (PAT): Losses improved from ₹-4,179.31 crore in FY 2023 to ₹-611.01 crore by June 2024, with a loss of ₹-2,350.24 crore reported in FY 2024.
- Total Borrowing: Increased from ₹211.19 crore in FY 2024 to ₹256.61 crore by June 2024, showing low debt reliance relative to assets.
- Net Worth: Decreased from ₹12,266.91 crore in FY 2022 to ₹7,444.99 crore by June 2024, highlighting equity pressures from ongoing losses.
- Reserves and Surplus: Dropped to ₹-7,750.85 crore in June 2024 from ₹-3,311.1 crore in FY 2022, indicating significant accumulated losses.
Investment Strategies and Objectives
Swiggy aims to utilize the funds raised from the IPO for several strategic purposes, including:
- Repaying loans through an investment in Scootsy.
- Expanding its Dark Store network to improve the Quick Commerce segment.
- Upgrading technology and cloud infrastructure.
- Increasing brand visibility through marketing efforts.
- Supporting potential acquisitions for inorganic growth.
Advantages of Investing in Swiggy
Investing in Swiggy’s IPO could present multiple advantages:
- Market Leadership: Swiggy is a leading player in the hyperlocal delivery sector, leveraging technology for consumer convenience.
- User Growth: The platform has grown to serve 112.73 million users, with a significant increase in user engagement.
- Diverse Offerings: The company’s varied services and seamless integration enhance user experience and satisfaction.
- Strong Brand Reputation: Recognised as a top consumer technology brand, Swiggy continues to expand its market share and user base.
Digital solutions have streamlined IPO investing. After setting up your Demat account, you can apply for the IPO via your preferred platform. Choose an efficient share trading app that offers real-time updates, easy applications, and smooth fund transfers.
Potential Risks to Consider
While there are opportunities, investors should be aware of certain risks:
- Ongoing net losses and cash flow challenges despite revenue growth.
- High competition affecting user acquisition and retention.
- Dependence on maintaining partnerships with restaurants and merchants.
- Management challenges associated with Dark Stores.
- Possible regulatory shifts in the e-commerce landscape.
Growth Prospects Ahead
Looking forward, Swiggy has laid out several growth strategies:
- Expanding service offerings and partner networks to enhance user convenience.
- Boosting the Dark Store network for improved product selection.
- Optimising operations to improve contribution margins.
- Investing in technology to enhance last-mile delivery efficiency.
- Employing targeted marketing to increase brand recall and user engagement.
How to Invest in Swiggy’s IPO via HDFC Sky
With HDFC Sky’s One-Click IPO feature, applying for Swiggy’s IPO is straightforward:
- Login to HDFC Sky: Enter your credentials to access your account.
- Navigate to the IPO Section: Select “Indian Stocks” and then choose “IPO.”
- Find Swiggy: Click on Swiggy in the IPO listings and select “Apply Now.”
- Enter Your Bid: Specify your bid amount and any necessary customisations.
- Choose Payment Method: Select UPI for a seamless payment experience.
- Authorise Payment: Approve the transaction in your UPI app.
- Complete Your Order: Submit your application to finalize your order.
Key Features of HDFC Sky’s One-Click IPO
- Streamlined Application: Minimise paperwork with an easy one-click application.
- Real-Time Updates: Stay informed with instant notifications on application status.
- Unified Management: Keep all IPO investments organised in one place.
- Flexible Access: Apply from anywhere using the HDFC Sky app or portal.
Conclusion
Swiggy’s upcoming IPO represents a compelling investment opportunity within the booming on-demand delivery market. Coupled with HDFC Sky’s convenient application process, this is a chance not to be missed. Explore this growth opportunity and consider investing in Swiggy as it continues to expand its footprint across India.