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Swiggy IPO
Swiggy Ltd
₹14,098 /38 sharesMinimum investment
IPO details
Minimum investment
₹14,098
Price range
₹371 - ₹390
Lot size
38
Issue size
11,327.43 Cr
Face value
1
IPO document
Subscription rate
Qualified Institutional Buyers5.80x
Non-Institutional Investor0.39x
Retail Individual Investor1.08x
Employees1.59x
Total3.46x
As of 08 Nov'24, 04:00 PM
Schedule
6 Nov 2024
IPO open date
8 Nov 2024
IPO close date
11 Nov 2024
Allotment date
11 Nov 2024
Funds unblock or debit
13 Nov 2024
Tentative listing date
About
Founded in
2013
MD/CEO
Sriharsha Majety
Parent organisation
Swiggy Ltd
Swiggy Ltd IPO
https://www.youtube.com/watch?v=hITNIRomSgA
Swiggy Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
Swiggy offers various discounts and deals through its membership program, Swiggy One. The platform also provides convenient in-app payment options, including the digital wallet Swiggy Money (a prepaid payment instrument), Swiggy UPI, and the Swiggy-HDFC Bank credit card for added benefits.
Swiggy has acquired Dineout to enhance users’ offline restaurant experiences and establish restaurant partner relationships.
In its 10th year of operation, Swiggy reached 112.73 million users who have transacted on its platform as of June 30, 2024.
The company claims to utilise its network of users and partners to assess market demand for new offerings through targeted testing. Once a service demonstrates its potential for scalability, profitable unit economics, and geographic expansion, Swiggy proceeds to roll it out across various cities.
Swiggy also claims to employ technology-driven personalised recommendations to help users quickly find desired offerings, evaluate their options, and make choices. Additionally, its targeted advertising tools enable restaurants, merchants, and brand partners to effectively promote their brands on the platform and attract new users.
The company has seen a consistent increase in revenue from operations. Revenue from operations increased from Rs 5,704.90 crore in FY22 to Rs 8,264.60 crore in FY23 to Rs 11,247.39 crore in FY24.
Swiggy has experienced losses every year since its inception. In FY22, the company reported a loss of Rs 3,628.90 crore. The year after, in FY23, it experienced a loss of Rs 4,179.30 crore, and in FY24 the loss was Rs 2,350.24 crore. The company also faces negative cash flows from operations. Any inability to get regular funding to keep up the operations or failure to achieve sufficient profits and manage expenses can be detrimental to the company’s business.
The company is significantly dependent on its delivery partners for smooth business operations, but the company does not have any exclusive agreements with them. Any failure to attract new delivery partners or retain them with the help of delivery fees, incentives, and medical benefits can adversely impact its delivery capacity, consequently affecting its operations and finances.
The ability to retain existing restaurant partners and acquire new ones, along with merchant and brand partners, is crucial. Failure to do so in a cost-effective manner could harm the company's financial performance.
The success of Swiggy's quick commerce business is dependent on the location, size, and density of its dark stores. These factors are critical for providing merchant partners access to a broad user base, ensuring a diverse product selection, enabling fast order fulfilment, and minimising last-mile delivery time and costs. Any inability to manage these aspects efficiently may adversely impact the company's business operations and financial condition.
Swiggy operates its warehouses on a leasehold basis through lease agreements or leave and licence agreements. There is no guarantee that the current warehouse locations will remain suitable for wholesalers and retailers or that new warehouses can be established successfully. Any adverse demographic developments in the locations of these warehouses or the termination of lease agreements can cause a sudden shutdown, negatively affecting the company’s operations.
If restaurant and merchant partners do not maintain the hygiene, quality, quantity, and weight of food and products provided on the platform, it could negatively impact Swiggy's business and financial condition.
The company, its subsidiaries, and certain directors are involved in ongoing legal proceedings. Any adverse judgments in any of these cases can be detrimental to the company’s business prospects.
As of July 31, 2024, Swiggy's outstanding borrowings amounted to Rs 255.58 crore. Any inability to service or repay these loans can adversely affect the company’s finances.
Application details
For Swiggy IPO, eligible investors can apply as Regular & Employee.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹371 - ₹390 | Upto ₹2 Lakhs | 38 |
| Employee | ₹346 - ₹365 | Upto ₹5 Lakhs | 38 |
| High Networth Individual | ₹371 - ₹390 | ₹2 - ₹5 Lakhs | 38 |