Swiggy, one of India’s leading food delivery companies, is set to make its IPO. Swiggy gets SEBI’s nod for IPO A news package about it.
New IPO fireworks in the stock market as well as the festive season later in the year have excited the business market.
Long-awaited food and grocery delivery company Swiggy has received SEBI’s nod to go ahead with its IPO. Swiggy aims to raise around Rs 11,000 crore through new issues worth Rs 5,000 crore.
Sensing the untapped potential in the food industry, Sriharsha along with Nandan Reddy and Rahul Jaimini officially launched Swiggy in August 2014. Swiggy, which started modestly with six delivery staff from 25 restaurants, grew successfully to process one million orders monthly within eight months.
With over 150,000 restaurants across India, Swiggy has a strong foothold in India’s metro cities and tier-II cities as well.
Swiggy’s annual revenue as of March 31, 2023 was 1.09 billion USD. It has more than 4,700 employees, according to Tracxn data.
Swiggy saw a 36 per cent jump in revenue to Rs 11,247 crore this fiscal. Swiggy has registered a total order value of Rs 35,000 crore across food delivery, Instamart and dining out.
At the same time, it has significantly reduced the loss of Rs 4,179 crore last year. Accordingly, this year, the loss of the company is shown at Rs 2,350 crore.
In 2019, Swiggy diversified its services into general product delivery through Swiggy Stores and instant pickup/dropoff services with Swiggy Go. Rebranded as Swiggy Genie in 2020. Swiggy expanded all grocery delivery operations under Instamart to compete with BigBasket by closing Swiggy Stores in 2021.
Last April, Swiggy launched a new service called ‘Swiggy Pawlice’. It helps to report missing pets. Once a missing pet is found, the Swiggy team brings the pet safely back to its owners.
Many high-profile celebrities have become Swiggy investors even before the IPO comes out due to these innovations. Hindi film industry celebrities Amitabh Bachchan, Madhuri Dixit, Karan Johar and famous athletes Rahul Dravid, Zaheer Khan, Rogan Bopanna have invested in Swiggy.
Global investors such as SoftBank Vision Fund, Prosus, Accel and Elevation Capital also hold significant stakes in Swiggy. Also, Innov8 founder Ritesh Malik and Motilal Oswal Financial Services chairman Ramdeo Aggarwal have also invested in Swiggy’s pre-IPO stake.
Swiggy and Zomato alone control over 90 percent of India’s food delivery market. Already, Zomato is entering the food delivery market with optimization and pricing.
Investors are keenly watching Swiggy’s move to IPO in the Rs 2 lakh crore food delivery market. Swiggy has implemented strict cost controls, reduced discounts and diversified its offerings.
The IPO is worth Rs 3,750 crore in fresh issue and the offer for sale (OFS) is expected to cross Rs 6,500 crore. Hence, stock market experts say that the combined IPO will bring in over Rs 10,000 crore. Investors, especially those looking to exit Zomato, are expected to return to Swiggy.
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