New Delhi: Recently, Swiggy’s IPO report has been trending in India due to its share price and its market competition. While their plan remains unclear, looking at past news, the IPO is trending, and Swiggy’s market shares are in focus. The stock closed nearly 8% lower on Thursday. On the listing day, Swiggy shares ended the trading session at ₹454 on NSE, nearly a 17 percent premium over the IPO price of ₹390, and at ₹455.95 on BSE, a 16.9 percent premium.
Swiggy’s ₹11,300-crore IPO was subscribed 3.59 times, primarily driven by interest from institutional investors. The shares were listed on bourses at a nearly 8 percent premium. Swiggy’s revenue model spans multiple verticals, including its core food delivery service, Swiggy Instamart (grocery delivery), and Swiggy Genie (parcel delivery). This diverse service portfolio has helped Swiggy generate a gross revenue of ₹5,705 crore in the fiscal year 2023, representing a year-over-year growth of 40%. Swiggy Instamart alone contributed over ₹1,500 crore to Swiggy’s overall revenue, showcasing strong traction in the quick-commerce grocery sector.
However, this broad approach comes with challenges. Swiggy’s operational expenses reached ₹7,280 crore in FY 2023, resulting in a net loss of ₹1,575 crore, a slight improvement from ₹1,850 crore in FY 2022. While Swiggy’s diversified model spreads risk, it also requires heavy capital investment, and the quick-commerce segment, in particular, has yet to show consistent profitability.
Running into the Swiggy IPO, a key point of debate was the difference in growth rate with its close peer Zomato. For example, in Q1 FY25, Zomato’s year-on-year revenue growth rate at 62 percent was much stronger than Swiggy’s 34 percent. The difference was also notable when considering the booming quick-commerce segment, where Zomato’s 130 percent growth was way above Swiggy’s 89 percent.
