Swiggy IPO

Swiggy IPO Details

Swiggy IPO Date

According to the offer document filed by the company with the SEBI, the Swiggy IPO’s opening date – in other words, the Swiggy IPO launch date – will be 6th November 2024. The Swiggy IPO closing date is 8th November 2024. After this, investors will be updated about the allotment status on 11th November 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 12th November 2024. The Swiggy IPO listing date is 13th November 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE. 

Swiggy IPO Price Band

The IPO is a fresh issue and an offer for sale. The Swiggy IPO price band has been set between ₹371 and ₹390 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Swiggy IPO listing price will be determined on 13th November 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Swiggy IPO Lot Size

The Swiggy IPO details have been declared. The Swiggy IPO lot size is set at 38 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Swiggy IPO issue size is approx ₹11327.43 crore. 

About Swiggy Limited

Incorporated in 2013, Swiggy Limited is a pioneer of hyperlocal commerce platform in India, having launched food delivery in 2014 and quick commerce in 2020. It offers food delivery under Swiggy, delivery of household items under Instamart, dinner reservations under Dineout, event bookings under SteppinOut, pick-up and drop-off services under Genie, and hyperlocal commerce under Swiggy Minis. 

In addition to food delivery, out-of-home consumption, and quick commerce, Swiggy offers B2B (business-to-business) supplies, warehousing, logistics, and distribution for wholesalers and retailers. 

As of 30 June 2024, it has a total employee count of 5,401. It managed 2.66 million sq. ft. of warehousing space across 13 cities, had ~680 authorised brand distribution partnerships, and served ~87,000 retailers and wholesalers. It offered a selection of ~19,000+ SKUs within grocery and household items on its platform.

As of 30 June 2024, Instamart operated a network of 557 active dark stores across India. The company received over 55.9 million orders during the same period. Gross order value (GOV) stood at ₹2,724 crore and average order value (AOV) of ₹487 per order. These dark stores are strategically located in identified catchment areas across the cities, offering seamless and quick availability and supply of grocery and household items.  

Under its out-of-home consumption category, it had 33,352 average monthly active restaurant partners on Dineout as of Q1FY25. Over 2 million transactions took place on the platform, with AOV of ₹3,236 per order and gross revenue of ₹46.7 crore. 

According to reports, the online dining-out market in India was valued at approximately ₹50 billion (US$0.6 billion) in 2023 and is expected to grow at a CAGR of 46% to 53% between 2023 and 2028.

Meanwhile, the company’s food delivery business had a gross order value (GOV) of ₹6,808 crore in Q1FY25, while Swiggy delivered over 155.9 million orders during the same period. The average monthly transacting users (MTU) on the Swiggy platform grew at a CAGR of 11.6% in the last three fiscal years, standing at 12.73 million in FY24.

Swiggy’s revenue from operations rose 25.4% between FY22 and FY24 and 34.8% between Q1 FY24 and Q1 FY25. Moreover, it operates in the rapidly growing food delivery and quick commerce market, which grew at a CAGR of 42% and 148-169% between 2018 and 2023. 

Moreover,  annual spending per user on online food delivery platforms has more than doubled from ₹2,800-3,200 in 2018 to ₹7,500-8,000 in 2023. Similarly, annual spending per user on quick commerce stood at ₹13,400 in 2023, which was negligible in 2018. This rising spending trend could indirectly benefit the company. 

And now, Swiggy Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹11,327.43 crore, comprising fresh issue, aggregating to ₹4499 crore, and an offer for sale, aggregating to ₹6828.43 crore. Its shares will be listed on the NSE and BSE.

Company Name:  Swiggy Limited

Company Established On: 2013

Company Type: Private

CEO/MD:  Sriharsha Majety

Financial snapshot

Swiggy IPO Analysis

Strengths and opportunities

1. It operates in the food delivery and quick commerce markets in India, which has potential due to high frequency, habit formation, and recall value in these categories.
2. The company’s food delivery business had a gross order value (GOV) of ₹24,717.4 crore in FY24 and delivered over 577.7 million orders during the same period. 
3. The average monthly transacting users (MTU) on the Swiggy platform grew at a CAGR of 11.6% in the last three fiscal years, reaching 14.29 million in FY24.
4. Pioneers of high-frequency hyperlocal commerce categories as it was able to scale Instamart in less than four years from two cities when it was launched in 2020 to 32 cities on 30 June 2024.
5. Rising user engagement as users on its platform transacted more frequently per month compared to hyperlocal commerce players in FY24.
6. As of 30 June 2024, it is the only unified app in India that fulfils, through its own platform, all urban users' food-related missions of ordering in, eating out, and cooking at home.
7. Preferred choice for delivery, merchant, brand and restaurant partners as its top-100 restaurant partners by revenue contribution have been on its platform for an average of more than five years, as of Q1 FY25.
8. Synergetic network effects driven by its wide users and partner base help it scale new offerings rapidly and efficiently.

Risks and threats

1. Has incurred net losses in each year since incorporation and has negative cash flows from operations. 
2. Failure to retain its existing user base or to acquire new users in a cost-effective manner will adversely affect its operations and finances.
3. It faces intense competition across the markets it serves as multiple players are entering the market. The online dining out segment is expected to grow at 46% to 53% between 2023 and 2028.
4. It has limited experience operating the business at its current scale, scope, and complexity, as it started its operations in 2014 with food delivery and, consequently, with quick commerce, Dineout, Genie, etc.
5. Operates in an industry that is susceptible to health concerns and failure to ensure hygiene on the part of restaurant or delivery partners might affect its reputation. 
6. The wide variety of payment methods that it accepts subjects it to third-party payment processing-related risks. 
7. Does not have exclusive arrangements with its delivery, merchant, brand and almost all its restaurant partners, and it may prioritise the services of its competitors. 
8. Seasonality, occasions and holidays may cause fluctuations in its sales and results of operations. 

How to apply for the Swiggy IPO?

If you are interested to invest in Swiggy IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Swiggy IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app