Swiggy Limited, the popular food delivery and quick commerce platform, is all set to make its debut in the public market with a much-awaited Initial Public Offering (IPO). Scheduled to open for subscription from November 6 to November 8, 2024, this IPO has attracted the interest of retail investors looking to participate in the platform’s rapid growth and ambitious expansion plans. Here’s a look at the key details of the offer, Swiggy’s services, and how the funds will be allocated.
IPO Overview and Structure
Swiggy’s IPO follows a book-building process with a total issue size of ₹11,327.43 crore. This amount is divided into two main parts:
Fresh Issue: 11.54 crore shares are being issued, amounting to ₹4,499 crore.
Offer for Sale (OFS): 17.51 crore shares are being offered for sale by existing stakeholders, totaling ₹6,828.43 crore.
The price band for the IPO has been set between ₹371 to ₹390 per share, presenting an investment opportunity in one of India’s leading digital platforms.
Founded in 2014, Swiggy has become a one-stop solution for diverse customer needs, transforming India’s food delivery landscape with a user-friendly platform that goes beyond food. Swiggy’s portfolio extends to restaurant reservations through Dineout, event bookings with SteppinOut, and item pickups and deliveries through Swiggy Genie.
For customers seeking even more convenience, Swiggy offers Swiggy Minis, designed to cater to hyperlocal, region-specific services. To further enhance user experience, the company provides the “Swiggy One” membership, which unlocks exclusive discounts and offers. Swiggy’s platform also supports digital wallet payments through Swiggy Money, Swiggy UPI, and an exclusive Swiggy-HDFC Bank credit card with additional benefits.
Swiggy’s Instamart, the company’s quick commerce division, has shown remarkable growth in recent months. As of June 30, 2024, Instamart operated 557 active dark stores in 32 cities across India. By September 10, 2024, this number expanded to 605 active dark stores in 43 cities.
A significant portion, ₹137.41 crore, will be allocated to repay debt associated with Swiggy’s subsidiary, Scootsy. Additionally, Swiggy has allocated ₹982.40 crore to further expand Scootsy’s dark store network, with ₹559.10 crore intended for building new dark stores and ₹423.30 crore for lease payments. Swiggy is also investing ₹586.20 crore in upgrading its technology and cloud infrastructure, while ₹929.50 crore will be directed towards brand marketing, inorganic growth, acquisitions, and general corporate purposes.
