Since its launch in 2014, Swiggy Limited has swiftly risen to lead India’s fast-evolving on-demand delivery industry. Offering a user-friendly app, Swiggy goes beyond food deliveries, branching into groceries and logistics to provide a broad range of services. By prioritizing innovation and customer convenience, Swiggy has established a strong presence, particularly in India’s vibrant urban centers.
In an exciting development, Swiggy is set to launch its Initial Public Offering (IPO) from November 6 to November 8, 2024. This IPO aims to raise a substantial ₹11,327.43 crores, featuring a fresh issue of ₹4,499 crores and an offer for sale totaling ₹6,828.43 crores. The goal is to enhance visibility and liquidity while providing a public market for these shares. A demat account opening is essential for anyone looking to invest in this opportunity.
Join us as we explore the specifics of the Swiggy IPO and how you can participate seamlessly using HDFC Sky’s user-friendly ‘One-Click IPO’ feature.
Swiggy: A Quick Overview
Swiggy stands out as a tech-centric consumer service platform, providing an integrated app that simplifies access to various convenience services. Users can enjoy food orders, grocery shopping, event bookings, and more—all from a single interface. Swiggy has pioneered hyperlocal commerce in India, launching its food delivery service in 2014 and venturing into quick commerce by 2020.
Services Offered by Swiggy
- Food Delivery: Prompt delivery of meals from local restaurants.
- Instamart: A grocery delivery service ensuring fast access to essentials.
- Dineout and SteppinOut: Reservation and event booking functionalities.
- Genie: Pickup and drop-off services for various items.
With initiatives like “Swiggy One,” a membership program offering discounts, and digital payment options like “Swiggy Money” and Swiggy UPI, the company enhances user experience significantly. Swiggy also supports its partners with valuable business insights, delivery solutions, and a robust technology infrastructure.
Upcoming IPO Details
Key Information at a Glance
| Aspect | Details |
| IPO Opening Date | November 6, 2024 |
| IPO Closing Date | November 8, 2024 |
| Expected Listing Date | November 13, 2024 |
| Share Price Range | ₹371 to ₹390 per share |
| Face Value | ₹1 per share |
| Lot Size | 38 shares |
| Total Shares Offered | 290,446,837 shares (up to ₹11,327.43 Cr) |
| Fresh Issue Amount | ₹4,499 crores |
| Offer for Sale Amount | ₹6,828.43 crores |
| Employee Discount | ₹25 per share |
Moreover, having a demat account opening app is essential for holding shares electronically, making buying and selling much easier
IPO Allocation Structure
- Qualified Institutional Buyers (QIB): Minimum 75% of the net issue.
- Retail Investors: Maximum 10% of the net issue.
- Non-Institutional Investors (NII): Maximum 15% of the net issue.
Investing in an IPO can be thrilling. Here are essential tips: research the company’s business model, monitor its financials, evaluate market conditions, open a demat account beforehand, and select the best trading platform to manage your investments effectively.
Purpose of the IPO
The funds raised through the Swiggy IPO will be allocated towards several strategic initiatives, including:
- Debt Repayment: Paying down borrowings related to Scootsy.
- Expansion of Dark Stores: Enhancing the Quick Commerce network and related expenses.
- Technology Investments: Upgrading cloud infrastructure and technology.
- Marketing and Brand Visibility: Boosting platform promotion to attract users.
- Inorganic Growth Opportunities: Exploring acquisitions and general corporate needs.
Financial Insights
Here’s a snapshot of Swiggy’s financial trajectory over the past few years:
| Metrics | 30 June 2024 | 31 March 2024 | 31 March 2023 | 31 March 2022 |
| Total Assets (₹ Crores) | 10,341.24 | 10,529.42 | 11,280.65 | 14,405.74 |
| Revenue (₹ Crores) | 3,310.11 | 11,634.35 | 8,714.45 | 6,119.78 |
| Profit After Tax (₹ Crores) | -611.01 | -2,350.24 | -4,179.31 | -3,628.90 |
| Net Worth (₹ Crores) | 7,444.99 | 7,791.46 | 9,056.61 | 12,266.91 |
| Total Borrowings (₹ Crores) | 256.61 | 211.19 | – | – |
Observations
- Asset Decline: A drop in total assets from ₹14,405.74 crores in FY 2022 to ₹10,341.24 crores as of June 2024 suggests restructuring.
- Revenue Growth: Revenue growth showcases a significant rise, from ₹6,119.78 crores in FY 2022 to ₹11,634.35 crores in FY 2024.
- Profit Trends: Though still in the red, Swiggy has reduced its losses over the years, indicating improved operational efficiency.
- Borrowing Level: Minimal reliance on debt showcases a controlled approach to financing.
Strengths and Challenges
Strengths
- Market Leadership: Swiggy is a leader in the hyperlocal commerce domain in India, leveraging technology for enhanced user experiences.
- Robust User Base: In its tenth year, Swiggy boasts over 112 million users, averaging 4.5 transactions per month.
- Diverse Offerings: A comprehensive app ecosystem ensures high user engagement and retention.
Challenges
- Financial Losses: Continuous net losses and negative cash flows despite revenue growth pose concerns.
- Competitive Landscape: Intense competition may impact user acquisition and retention.
- Regulatory Risks: Potential regulatory changes in e-commerce could disrupt business models.
Future Directions
Swiggy has ambitious plans to propel its growth trajectory, focusing on:
- Service Expansion: Broadening its range of offerings and enhancing partner networks.
- Network Development: Increasing the number of Dark Stores to improve product availability.
- Technology Advancements: Investing in tech for better operational efficiency.
- Marketing Initiatives: Employing data-driven strategies for effective brand engagement.
How to Invest in Swiggy’s IPO via HDFC Sky
Investing in Swiggy’s IPO is simple and efficient with HDFC Sky’s One-Click feature. Here’s how to get started:
- Login: Enter your credentials on the HDFC Sky platform.
- Access IPO Section: Navigate to the “IPO” under “Indian Stocks.”
- Select Swiggy IPO: Find Swiggy in the IPO listings and click “Apply Now.”
- Enter Bid Amount: Input your desired bid amount and adjust your application.
- Payment Process: Choose UPI as your payment method.
- Mandate Approval: Use your UPI app to authorize the transaction.
- Complete Application: Finalize your order by placing it.
HDFC Sky One-Click Features
- Simplified Application: Apply effortlessly, reducing the need for extensive paperwork.
- Real-time Updates: Stay informed with instant notifications regarding application status.
- Centralized Management: Track all IPO investments in one location.
- Accessibility: Apply from anywhere using the HDFC Sky app or website.
Swiggy’s upcoming IPO represents a remarkable investment opportunity in the rapidly growing delivery market. With the seamless application process provided by HDFC Sky, engaging in this exciting venture has never been more accessible! Don’t let this chance slip away—explore your options today!