Swiggy Files IPO Papers
Swiggy files for ₹10,000 crore IPO, eyeing expansion in India's competitive food delivery market
Swiggy has filed its draft papers with SEBI for a ₹10,000 crore IPO, setting the stage for one of India's largest tech listings. It reflects the growing confidence in India's tech sector and could reshape the competitive landscape in food delivery and quick commerce.
The big picture: Swiggy's IPO could become the largest offering among new-age companies since Paytm's ₹18,300 crore debut in 2021, surpassing Zomato's ₹9,375 crore listing.
By the numbers:
- Swiggy’s last funding round in January 2022 valued the company at $10.7 billion.
- In the June quarter of FY25, Swiggy reported a 34% rise in operating revenue, reaching Rs 3,222 crore.
- But the company’s net losses widened to Rs 611 crore from Rs 564 crore
Why it matters: This IPO could redefine the competitive dynamics in India's food tech sector, while also testing investor appetite for high-growth, loss-making tech companies in a post-Zomato IPO landscape.
Driving the news: Prosus, Swiggy's largest shareholder, plans to offload over 60% of the Offer for Sale, worth more than $500 million. Meanwhile, SoftBank has chosen to retain its entire stake, demonstrating confidence in Swiggy's future growth potential.
The strategy:
- Allocate ₹982.4 crore for Instamart expansion, including:
- ₹559.1 crore for setting up dark stores
- ₹423.3 crore for leasing or licensing dark stores
- Focus on quick commerce to compete with Zepto, Zomato's Blinkit, and Tata's BigBasket
But challenges remain:
- Widening losses amid fierce competition in quick commerce
- Market volatility and changing investor sentiment towards tech stocks
- Balancing growth with sustainable unit economics
What to watch: The performance of Instamart, Swiggy's quick commerce vertical, will be crucial in shaping overall financials and investor perception. Given Zomato's volatile post-IPO journey, Swiggy's investor reception will be a key indicator of market appetite for food-tech stocks.
The bottom line: While the company's growth and market position are impressive, its ability to navigate the public markets, compete effectively in quick commerce, and chart a path to profitability will be crucial for long-term success. The IPO's performance could also set the tone for future tech listings in India.
