Founded in 2014, Swiggy Limited has quickly become a leading force in India’s on-demand delivery market. Its user-friendly app connects millions to a range of services, including food delivery, groceries, and logistics, with a strong focus on providing convenience and innovation, especially in urban centers nationwide.
As the company gears up for its Initial Public Offering (IPO) slated for November 2024, investors have a chance to be part of its exciting growth trajectory.
Let’s take a closer look at the Swiggy IPO and see how HDFC Sky’s innovative ‘One-Click IPO’ tool makes the investment process seamless for prospective investors.
Swiggy IPO Overview
Swiggy is set to launch a book-built IPO amounting to ₹11,327.43 crores, which includes a fresh issue of ₹4,499 crores and an offer for sale of ₹6,828.43 crores. This investment opportunity invites stakeholders to participate in the continued expansion of Swiggy’s service offerings.
To take advantage of this IPO, interested investors should ensure they have completed their demat account opening, as it is essential for holding and trading shares effectively.
Key IPO Dates
| IPO Date | Details |
| Open Date | November 6, 2024 |
| Close Date | November 8, 2024 |
| Allotment Date | November 11, 2024 |
| Credit of Shares | November 12, 2024 |
| Listing Date | November 13, 2024 |
IPO Financial Summary
| Aspect | Details |
| Face Value | ₹1 per share |
| Price Band | ₹371 to ₹390 per share |
| Lot Size | 38 Shares |
| Total Issue Size | 290,446,837 shares (up to ₹11,327.43 Cr) |
| Fresh Issue | 115,358,974 shares (up to ₹4,499.00 Cr) |
| Offer for Sale | 175,087,863 shares (up to ₹6,828.43 Cr) |
| Employee Discount | ₹25 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Investors may have access to a margin trading facility, enabling them to leverage their investment in Swiggy’s IPO for greater potential returns.
About Swiggy
Swiggy operates as a consumer-first technology company, providing an integrated platform for various convenience services. Its app allows users to order food, groceries, and household essentials, book restaurant reservations, and access event services, among others. Since its inception, Swiggy has continually enhanced its offerings, launching Food Delivery in 2014 and Quick Commerce in 2020.
Business Innovations
Swiggy has also implemented several user-friendly features, including:
- Swiggy One: A membership program offering discounts.
- Swiggy Money and UPI: Simplified payment options.
- HDFC Co-branded Credit Card: Facilitating smoother transactions.
With a strong commitment to partner support, Swiggy provides analytics tools and last-mile delivery solutions, ensuring a robust business ecosystem.
Financial Performance
Swiggy’s financial trajectory demonstrates significant revenue growth despite ongoing challenges. Here’s a breakdown of its recent financial performance:
| Financial Metrics | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Total Assets | ₹10,341.24 | ₹10,529.42 | ₹11,280.65 | ₹14,405.74 |
| Revenue | ₹3,310.11 | ₹11,634.35 | ₹8,714.45 | ₹6,119.78 |
| Profit After Tax | ₹-611.01 | ₹-2,350.24 | ₹-4,179.31 | ₹-3,628.90 |
| Net Worth | ₹7,444.99 | ₹7,791.46 | ₹9,056.61 | ₹12,266.91 |
| Reserves and Surplus | ₹-7,750.85 | ₹-7,880.85 | ₹-6,510.34 | ₹-3,311.10 |
| Total Borrowing | ₹256.61 | ₹211.19 | – | – |
(amount in crores)
Observations
Swiggy’s financial metrics reflect significant changes over recent years, providing insight into its performance and operational health. As of June 30, 2024, the company reported total assets of ₹10,341.24 crore, a decline from ₹14,405.74 crore in March 2022. This reduction suggests ongoing restructuring efforts aimed at optimising resources and improving efficiency.
On the revenue front, Swiggy generated ₹3,310.11 crore in June 2024, marking a substantial increase from ₹6,119.78 crore in March 2022. This growth highlights Swiggy’s successful scaling of operations and its ability to capture a larger market share despite challenges in the competitive landscape of on-demand delivery services.
Profit After Tax has shown a notable improvement, with losses decreasing from ₹-4,179.31 crore in March 2023 to ₹-611.01 crore in June 2024. This trend signals a positive shift towards potential profitability as the company works to enhance its business model and operational efficiency
Swiggy’s IPO Objectives
The funds raised through this IPO will be allocated to several strategic initiatives:
- Debt Repayment: Investing in Scootsy to clear borrowings.
- Expansion: Enhancing the Dark Store network for quick commerce.
- Technology Enhancement: Upgrading technology and cloud infrastructure.
- Brand Marketing: Boosting visibility and user engagement.
- Inorganic Growth: Funding potential acquisitions.
Strengths and Risks
Strengths
- Market Leader: Swiggy is a dominant force in hyperlocal commerce, known for innovation.
- User Engagement: An increasing user base with enhanced transaction frequency.
- Brand Recognition: Acknowledged as a leading Consumer Technology & Services brand.
Risks
- Financial Losses: Ongoing negative cash flow despite revenue growth.
- Competition: Risks from competitor offerings affecting user retention.
- Regulatory Changes: Potential impacts on operational viability.
Future Growth Strategies
Looking ahead, Swiggy aims to:
- Expand Offerings: Diversify service categories to enhance user engagement.
- Enhance Infrastructure: Focus on scaling operations for better delivery efficiency.
- Strengthen Partnerships: Maintain and grow relationships with restaurant partners.
- Optimise Marketing: Use data-driven strategies to increase brand visibility.
In conclusion, Swiggy’s IPO presents a promising opportunity for investors looking to tap into the evolving on-demand delivery market. As the company continues its trajectory of growth and innovation, being informed and prepared is crucial for prospective investors. With the right tools, including a reliable stock market app, participating in this landmark event could be a valuable addition to an investment portfolio.
How to Apply for Swiggy’s IPO Using the One-Click Feature on HDFC Sky
The One-Click feature on HDFC Sky simplifies the IPO application process, allowing for a swift and efficient experience. To apply for Swiggy’s IPO, follow these steps:
- Log in to HDFC Sky: Use your credentials to access your account.
- Go to the IPO Section: Click on “Indian Stocks” in your profile and select “IPO.”
- Choose Swiggy IPO: Find Swiggy in the list of IPOs and click “Apply Now.”
- Enter Your Bid: Specify your bid amount and adjust your application as necessary.
- Proceed to Payment: Select UPI as your preferred payment method.
- Authorise Mandate: Open your UPI app to approve the payment.
- Submit Your Order: Finalise your application by placing the order.
Key Features of HDFC Sky’s One-Click IPO:
- Streamlined Application: Apply with one click, reducing the need for paperwork.
- Real-Time Notifications: Get instant updates on your application status and refunds.
- All-in-One Platform: Manage all your IPO investments in a single location.
- Accessibility: Apply from anywhere using the HDFC Sky app or portal.
Swiggy’s IPO offers a significant growth opportunity, and with the One-Click feature from HDFC Sky, applying has never been more straightforward. Take advantage of this chance to invest efficiently!