Since its inception in 2014, Swiggy Limited has become a trailblazer in India’s on-demand delivery market, expanding from food delivery to groceries and logistics. With its user-friendly technology, Swiggy has reshaped how urban India engages with essential services. Now, the company invites investors to be part of its growth journey through a landmark Initial Public Offering (IPO) set for November 2024.
As a leader in the Indian on-demand delivery sector, Swiggy’s IPO highlights both a key investment opportunity and the rapid growth of India’s digital economy, marking a pivotal moment in the history of stock exchange in India
This guide will help you explore Swiggy’s IPO details, understand its financial trajectory, strengths, and challenges, and walk you through the investment process via HDFC Sky’s streamlined ‘One-Click IPO’ feature.
Company Background: Swiggy’s Evolution and Expansion
Swiggy began with a mission to simplify urban lives, initially launching its core food delivery service. Over the years, it has diversified into various convenience services through its platform, including grocery delivery with Instamart, restaurant reservations via Dineout, event bookings with SteppinOut, and Genie for pick-up/drop-off services. This expansion aligns with Swiggy’s vision of offering a unified experience for users who can access multiple services within a single app.
Through Swiggy One, its membership program, the company provides exclusive discounts and perks, while payment features like Swiggy Money, Swiggy UPI, and an HDFC co-branded credit card further enhance user convenience.
IPO Snapshot: What to Expect
Swiggy’s IPO, priced between ₹371 to ₹390 per share, spans three days, from November 6 to November 8, 2024. The IPO includes both a fresh issue of ₹4,499 crores and an offer for sale totaling ₹6,828.43 crores. The shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 13, 2024.
Many investors prefer using a mobile stock trading app to participate in IPOs. These apps make the process seamless, allowing users to apply, track, and manage their investments efficiently.
| IPO Component | Details |
| IPO Window | Nov 6, 2024 – Nov 8, 2024 |
| Listing Date | Nov 13, 2024 |
| Face Value | ₹1 per share |
| Price Band | ₹371 – ₹390 |
| Minimum Lot Size | 38 shares |
| Total Issue Size | 290,446,837 shares |
| Employee Discount | ₹25 per share |
Swiggy will allocate at least 75% of the IPO to Qualified Institutional Buyers (QIB), 10% to retail investors, and 15% to Non-Institutional Investors (NII).
Investors who are interested in this historic opportunity can easily participate by open free demat account through various platforms to simplify the process of investing.
Financial Performance and Key Figures
Swiggy’s financial metrics reveal both growth and challenges, illustrating its evolution as a technology-driven service provider:
- Revenue Growth: Swiggy’s revenue surged from ₹6,119.78 crore in FY2022 to ₹11,634.35 crore in FY2024, showing resilience and market demand.
- Profit After Tax (PAT): Losses have narrowed from ₹4,179.31 crore in FY2023 to ₹2,350.24 crore in FY2024, reflecting efforts to improve operational efficiency.
- Assets and Net Worth: While total assets reduced from ₹14,405.74 crore in FY2022 to ₹10,341.24 crore by mid-2024, Swiggy’s net worth decreased due to ongoing losses.
| Financial Indicator | 30 June 2024 | FY 2024 | FY 2023 | FY 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 |
| PAT | -₹611.01 Cr | -₹2,350.24 Cr | -₹4,179.31 Cr | -₹3,628.9 Cr |
| Net Worth | ₹7,444.99 Cr | ₹7,791.46 Cr | ₹9,056.61 Cr | ₹12,266.91 Cr |
IPO Objectives and Strategic Plans
Swiggy aims to utilize the IPO proceeds for a range of strategic initiatives:
- Repayment of Borrowings: Swiggy plans to reduce its debt burden by investing in Scootsy.
- Expansion of Dark Store Network: Strengthening its Quick Commerce segment, Swiggy seeks to broaden its delivery capabilities across locations.
- Technology Enhancement: Further investments in cloud infrastructure and software development.
- Brand Marketing and Promotion: Boosting Swiggy’s brand visibility through targeted advertising.
- Inorganic Growth: Pursuing potential acquisitions to enhance market reach and service offerings.
Interested investors can participate in the Swiggy IPO by a stock market app. This makes the process convenient and accessible, especially for those who prefer managing their investments on the go.
Strengths Driving Swiggy’s Market Position
Swiggy’s comprehensive platform, strong brand reputation, and user-first approach position it as a market leader in India’s hyperlocal delivery landscape. Key advantages include:
- Wide User Base: Serving over 112 million users with an average of 4.50 monthly transactions in Fiscal 2024.
- Unified Platform: Swiggy’s technology enables seamless integration of multiple services.
- Leading Brand Recognition: As a top Consumer Technology & Services brand in India, Swiggy leverages its brand to drive customer engagement.
- Robust Partner Network: With thousands of merchant partners, Swiggy’s app creates an efficient, cost-effective channel for businesses.
Challenges and Risks to Consider
Swiggy’s IPO carries certain risks that investors should weigh:
- Persistent Losses: Despite revenue growth, Swiggy has yet to achieve profitability.
- Competitive Pressures: Intense competition from similar platforms may impact customer retention.
- Reliance on Partnerships: Maintaining strong relationships with merchants and delivery partners is crucial to Swiggy’s service quality.
- Regulatory Hurdles: E-commerce regulations may affect Swiggy’s business operations.
Future Outlook: Swiggy’s Road Ahead
Swiggy is set on expanding its service portfolio and enhancing operational efficiency. Key initiatives include:
- Growing Dark Store Network: Enabling faster delivery and increased product range.
- Optimizing Last-Mile Logistics: Investing in technology to enhance delivery reliability.
- Enhanced Marketing: Data-driven advertising to boost brand recall.
- New Partnerships and Services: Scaling high-margin offerings to improve financial performance.
Applying for Swiggy’s IPO Through HDFC Sky’s One-Click IPO Tool
HDFC Sky’s ‘One-Click IPO’ simplifies the application process, enabling seamless investment in Swiggy’s IPO. Here’s how:
- Login to HDFC Sky: Access your HDFC Sky account with login credentials.
- Find Swiggy’s IPO: In the IPO section, locate Swiggy and select “Apply Now.”
- Place Your Bid: Choose your preferred bid and input the number of shares.
- Confirm Payment: Select UPI as your payment method and approve the transaction.
- Order Completion: Submit your application.
With HDFC Sky, you can monitor real-time updates and manage your IPO investments from a single platform.
The Swiggy IPO represents a promising investment opportunity in India’s rapidly expanding on-demand market. Investors seeking to capitalize on Swiggy’s growth should consider this IPO, and HDFC Sky’s One-Click tool makes it easier than ever to participate.