Key IPO Details

The price band of ₹390 per share and a minimum lot size of 38 shares provide investors with a range to estimate their investment needs. This information helps investors plan their financial participation in the IPO.

Business Overview

Swiggy is one of India’s leading platforms for food and grocery delivery, with a strong presence in over 500 cities. The company is expanding its services into quick commerce with Instamart, diversifying its offerings and enhancing its market reach.

Swiggy’s commitment to using machine learning algorithms for a seamless user experience and its large fleet of delivery executives contribute to its operational efficiency and market dominance.

The company’s IPO aims to fuel further growth and solidify its position in the market.

Founded in 2014, Swiggy operates in the food and grocery delivery sector, offering services in multiple cities across India. The company’s expansion into quick commerce and innovative solutions like Swiggy Genie showcase its adaptability and market responsiveness.

Industry Context & Investment Thesis

Swiggy’s IPO aligns with broader sustainability and circular economy themes by focusing on efficient delivery services and expanding into quick commerce. The company’s growth trajectory supports sustainable practices and enhances the digital economy.

The issue size and utilization of funds from the IPO demonstrate Swiggy’s commitment to sustainable growth and innovation in the food delivery and e-commerce sectors.

Investors may consider the IPO as an opportunity to support a company that integrates sustainability practices into its business model and contributes to the circular economy.

IPO Schedule & Key Dates

The IPO schedule provides crucial timelines for investors to plan their UPI mandates, track allotment, and anticipate the listing date.

Investors should ensure to follow the IPO schedule diligently to stay informed about mandates, allotment status, and listing timelines.

How to Apply for Swiggy Limited IPO

To apply for the Swiggy Limited IPO, investors can utilize UPI-enabled broker apps or opt for the ASBA process through their bank. The application process is straightforward and user-friendly.

Investors may consider reviewing the prospectus and conducting thorough research before making an investment decision in the IPO.

• Ensure you have a UPI ID linked to your demat account.
• Follow the instructions provided by your broker or bank for IPO application.
• Verify your application details before submission to avoid errors.

Key Strengths

• Swiggy’s operating revenue increased 36% year on year for FY24, reaching ₹11,247 crore. Additionally, the company successfully reduced its losses by 44% to ₹2,350 crore during the same period.
• Swiggy has an employee base of over 5000, alongside a fleet of more than 200,000 delivery executives, ensuring smooth and efficient operations.
• The company has diversified its offerings through platforms like Instamart (quick grocery delivery) and Swiggy Genie (pick-up and drop services), expanding its reach into non-food verticals.
• The company operates in over 500 cities across India, making it a dominant player in various geographic locations.
• Swiggy uses machine learning algorithms to deliver a more seamless and improved user experience.

Swiggy’s key strengths position it as a reliable player in the food and grocery delivery sector, appealing to investors seeking exposure to a well-established brand with significant market presence and innovative solutions.

Investors looking for long-term growth prospects and sustainability-focused opportunities may find Swiggy’s operational efficiency and market dominance attractive.

Key Risks

• Swiggy has faced consistent net losses and negative cash flows since inception. Despite revenue growth from services like Food Delivery and Quick Commerce, high costs such as advertising and delivery pose ongoing challenges.
• Swiggy’s success relies on cost-effective user acquisition and retention. Changes in preferences or competitor offers could reduce its user base, affecting revenue.
• Retaining restaurant and merchant partners is crucial. If partners increase prices or switch to competitors, order volumes may decline.
• Effective management of Dark Stores is vital for Quick Commerce. Poor management could disrupt services, raise costs, and lower user satisfaction.
• Potential changes in government regulations for the e-commerce and food delivery sectors could threaten Swiggy’s demand and overall business model.

Understanding the risks associated with Swiggy’s business model is essential for investors, considering factors like market volatility, regulatory influences, and operational challenges. Investors with varying risk tolerances should carefully assess these aspects before making an investment decision.

Who Should Consider This IPO?

Investors interested in companies with strong market presence, operational efficiency, and innovative solutions may find Swiggy’s IPO appealing. The company’s expansion into quick commerce and diverse offerings could attract those seeking exposure to growth-oriented businesses.

Investors with a long-term perspective, a focus on sustainability, and a balanced approach to risk may find Swiggy’s IPO aligning with their investment goals. Assessing individual risk profiles and investment objectives is crucial before participating in the IPO.

Frequently Asked Questions