 |
|
Swiggy, a prominent player in the food delivery and quick commerce arena, is gearing up for a significant initial public offering (IPO), aiming to raise a substantial $1.4 billion. This ambitious plan involves a fresh issue of $600 million, exceeding the earlier estimate of $450 million, and an offer for sale (OFS) of $800 million. The company's board has already approved the equity share issuance, pending shareholder approval at an extraordinary general meeting (EGM) scheduled for October 3. The final size of the IPO will be determined at the EGM.
The company's financial performance has been robust, with revenue growth of 36% year-on-year in FY24, reaching Rs 11,247 crore. Notably, Swiggy also managed to reduce its losses by 44% during the same period, down to Rs 2,350 crore. The decision to increase the IPO size comes amidst heightened competition in the quick commerce sector. Competitors such as Zomato and Blinkit have made strides in enhancing their profitability and market capitalization, while newer entrants like Zepto have secured significant funding. Walmart-owned Flipkart has also joined the race with its instant delivery platform, Flipkart Minutes.
Swiggy's quick commerce arm, Instamart, is aggressively expanding its operations, now serving 43 cities across India. In recent months, it has added 11 new cities, including Rajkot, Thrissur, Mangalore, Kanpur, Udaipur, Warangal, Salem, Amritsar, Bhopal, Varanasi, and Ludhiana, bringing quick commerce services to many of these locations for the first time. This strategic expansion reflects the growing demand for convenience and fast delivery in smaller towns and cities. Instamart's growth strategy focuses on expanding its store network in major metros while simultaneously penetrating tier-II and tier-III markets. The platform has partnered with local brands and vendors to offer region-specific products, catering to diverse customer preferences.
Looking ahead, Swiggy Instamart has ambitious plans to further expand its dark store network and diversify its product assortment to meet the rising demand, especially during the upcoming festive season. The company is confident that its quick commerce platform will continue to thrive, driven by the increasing demand for on-demand delivery services across India.
Source: Swiggy eyes $600 million fresh issue in upcoming IPO, total size may reach $1.4 billion