Swiggy Limited's upcoming IPO is set to open for subscription from November 6 to November 8, 2024. This book-built issue, valued at ₹11,327.43 crore, comprises a fresh issue of 11.54 crore shares, aggregating ₹4,499 crore, alongside an offer for sale of 17.51 crore shares, totaling ₹6,828.43 crore.
Click here to Apply for Swiggy IPO
The IPO price band is set between ₹371 and ₹390 per share. Following the subscription period, allotment finalisation is expected by November 11, 2024, with a tentative listing on the BSE and NSE scheduled for November 13, 2024.
Kotak Mahindra Capital, Citigroup Global Markets, Jefferies India, Avendus Capital, J.P. Morgan India, BofA Securities India, and ICICI Securities are appointed as the lead managers for the IPO. Link Intime India Private Ltd will serve as the issue's registrar, overseeing the allotment and other procedural requirements for Swiggy’s IPO debut in the public market.
Industry Outlook:
- India's food services market is projected to nearly double ₹9 trillion by 2030, fuelled by expanding customer bases and increased dining occasions.
- Online food delivery is expected to grow at an 18% CAGR, increasing its market share from 8% to 20% by 2030.
Swiggy IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- A portion of the funds will be used to repay or pre-pay some or all of Scootsy's borrowings, strengthening its financial position.
- Funds will support Scootsy in expanding its Dark Store network, enabling quicker service in the Quick Commerce segment, including making necessary lease or license payments.
- Investment will be made in technology and cloud infrastructure to enhance operational efficiency and support growth.
- Funds will be allocated for marketing and promotional activities aimed at increasing brand awareness and visibility across different market segments.
- The remaining proceeds will be used for general corporate purposes.
About Swiggy Limited
Swiggy Limited, established in 2012, is India’s premier pure-play B2C e-commerce logistics and on-demand delivery solutions provider. With a robust, pan-India express logistics network, Swiggy supports end-to-end logistics services, including first-mile pick-up, mid-mile transportation, last-mile delivery, reverse logistics, and fulfilment.
The company covers over 27,000 PIN codes, reaching 97% of India’s population with a strong focus on Tier 2+ regions. As India’s e-commerce market expanded, Swiggy evolved alongside it, handling over 2 billion shipments since 2013, with an annual growth rate of 33.46% between FY2020 and FY2024.
Swiggy operates a technology-driven, asset-light model, leveraging a network of 317 leased facilities and 3,421 delivery centres. A gig workforce fulfils a significant portion of Swiggy’s deliveries, optimising costs to ₹39.65 per shipment in FY2024. As of March 2023, Swiggy employed over 48,000 individuals and served 6,384 active customers by March 2024, including prominent brands like Amazon, Meesho, and Nykaa.
Swiggy's platform enables users to easily search, select, order, and pay for food, groceries, and household items delivered via an on-demand partner network. Swiggy's business units include Food Delivery; Out-of-Home Consumption (for restaurant visits and events); Quick Commerce (Instamart); Supply Chain and Distribution (B2B deliveries, warehousing, and logistics); and Platform Innovation (new offerings like Swiggy Genie and Swiggy Minis).
Through its Instamart service, Swiggy offers around 19,000 grocery SKUs, ranging from everyday essentials to festival-related items. As of June 30, 2024, Instamart operated 557 dark stores across 32 cities, expanding to 605 stores across 43 cities by September 10, 2024. Swiggy also offers a membership program, Swiggy One, in-app payment solutions like Swiggy Money, and a Swiggy-HDFC Bank credit card.
Swiggy’s business model provides comprehensive solutions to restaurant, merchant, and brand partners. It offers analytics-driven tools for online engagement, fulfilment services, and last-mile delivery.
How to Apply for Swiggy IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select Swiggy IPO: Find and select the Swiggy IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Key Performance Indicators of Swiggy IPO
Swiggy IPO Lot Size
The Swiggy IPO allows investors to bid in lots, starting with a minimum of 38 shares. Below is a summary of the investment range for retail investors and high-net-worth individuals (HNIs), including the minimum and maximum shares and amounts required for each category:
Investors can bid in increments of 38 shares above the minimum, with the maximum limit varying based on investor category.
Application Details of Swiggy IPO
For the Swiggy IPO, eligible participants include General Investors and High net-worth individuals, with specific limits on application amounts for each category.
Swiggy IPO Reservation
This table outlines the share allocation for different investor categories in the Swiggy IPO.
Swiggy IPO Anchor Investor's Details
Swiggy IPO Promoter Holding
Swiggy Company is the promoter, with 63.56% ownership before the issue and a reduced stake after the IPO is yet to be announced.
Swiggy IPO Registrar and Lead Manager(s)
Swiggy IPO Lead Managers:
- Kotak Mahindra Capital Company Limited
- Citigroup Global Markets India Private Limited
- Jefferies India Private Limited
- Avendus Capital Pvt Ltd
- J.P. Morgan India Private Limited
- Bofa Securities India Limited
- ICICI Securities Limited
Registrar for Swiggy IPO:
Link Intime India Private Limited
- Contact Number: +91-22-4918 6270
- Email Address: swiggy.ipo@linkintime.co.in
Website: Swiggy IPO Registrar
Swiggy IPO News
- Swiggy IPO Frenzy: Norway's Sovereign Wealth Fund and Global Giants Show Massive Interest
- Swiggy IPO: Financials, Strengths and Weaknesses
- Swiggy IPO To Open Post Nov 6: Seeking Valuation of $11
- Swiggy IPO vs Zomato: Pre-IPO Financial Comparison
- Swiggy cuts IPO valuation to $12.5 bn-$13.5 bn due to market volatility
IPO Financials
| Particulars | As at and for the three months ended June 30, 2024 | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|---|
| Revenue from Operations (in ₹ million) | 32,222.17 | 112,473.90 | 82,645.96 |
| Profit/Loss After Tax (PAT) (in ₹ million) | (6,110.07) | (23,502.43) | (41,793.05) |
| Cash & Cash Equivalents (in ₹ million) | 8,364.92 | 8,691.09 | 8,325.21 |
| Average Monthly Transacting Users (x) | 15.99 | 14.29 | 12.67 |
| Active Dark Stores (x) | 557 | 523 | 421 |
| Technology and cloud infrastructure cost (in ₹ million) | 829.74 | 2,956.96 | 4,135.70 |
| Net Worth (in ₹ million) | 74,449.92 | 77,914.61 | 90,566.12 |
| Earnings Per Share (“EPS”) | (2.76) | (10.70) | (19.33) |
| Total Borrowings (in ₹ million) | 2,566.11 | 2,111.86 | - |
| Return On Net Worth (%) | (8.21) | (30.16) | (46.15) |
Know before investing
Strengths
6Pioneers in high-frequency hyperlocal commerce since 2014 and 2020.
Innovation-led culture driving new offerings across multiple services.
Efficient scaling with 557 Active Dark Stores in 32 cities.
The unified app integrates food delivery, quick commerce, and more.
Strong partnerships, with 223,671 restaurant partners as of June 2024.
Technology stack built for scalability, ensuring fast service delivery.
Risks
6Net losses and negative cash flows since incorporation in 2014.
Revenue growth may slow due to intense competition and costs.
High advertising expenses, 16.46% of revenue in FY2024.
The inability to retain 457,249 delivery partners impacts operational efficiency.
Strikes and delivery partner disputes affect service continuity and costs.
Failure to manage 557 active dark stores may increase costs.
Swiggy IPO Peer Details Comparision
| Name of the Company | Face value of equity shares (₹) | EPS (₹) | Return on Net Worth (%) | NAV (per share) (₹) |
|---|---|---|---|---|
| Swiggy Limited | 1 | (10.70) Basic | (30.16) | 35.48 |
| Zomato Limited | 1 | 0.41 Basic | 1.72% | 23.14 |
