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ToggleSwiggy's Diverse Business Model
Swiggy, India’s leading food and grocery delivery platform, started in 2014, has steadily grown to become a powerhouse in the on-demand delivery market. Known initially for its food delivery services, Swiggy has expanded into multiple business areas through a single app, catering to a wide range of consumer needs.
Swiggy operates five major business lines:
- Food Delivery: The core business where Swiggy started, enabling users to order meals from a vast network of restaurants.
- Out-of-Home Consumption: This includes partnerships with restaurants and organizing events, enhancing the dining experience outside home.
- Quick Commerce: Through Instamart, Swiggy provides on-demand delivery of groceries and household items, offering over 19,000 SKUs. They currently operate 605 dark stores across 43 cities as of the latest update.
- B2B Supply Chain: Swiggy also operates in the B2B sector, streamlining the supply chain for businesses.
- Platform Innovations: Swiggy Genie and Swiggy Minis represent Swiggy’s new initiatives, offering services like package delivery and small-sized orders.
Financial Highlights
Swiggy has seen a steady rise in revenue but continues to operate at a loss, as illustrated by the recent financials:
Revenue:
- 30 June 2024: ₹3,310.11 crore
- 31 March 2024: ₹11,634.35 crore
- 31 March 2023: ₹8,714.45 crore
Profit After Tax:
- 30 June 2024: ₹-611.01 crore
- 31 March 2024: ₹-2,350.24 crore
- 31 March 2023: ₹-4,179.31 crore
Despite these losses, Swiggy’s valuation stands at ₹87,298 crore, showing strong investor confidence in its growth potential.
Swiggy IPO Details
Swiggy’s Initial Public Offering (IPO) is set to launch with the objective of funding expansion, technological advancements, and strategic acquisitions. Here are the key details:
- IPO Date: 6 November 2024 to 8 November 2024
- Price Band: ₹371 to ₹390 per share
- Employee Discount : ₹25 per share
- Lot Size: 38 shares
- Total Issue Size: 290,446,837 shares, raising ₹11,327.43 crore
- Fresh Issue: ₹4,499 crore
- Offer for Sale:₹6,828 crore
- IPO Type : Book built issue IPO
- Retail Reservation: 10%
- Allotment Date: 11 November 2024
- Refunds Initiation: 12 November 2024
- Shares Credit to Demat: 12 November 2024
- Listing Date: 13 November 2024
Purpose of the IPO
Swiggy aims to utilize the funds raised through the IPO for several strategic objectives:
- Investment in Subsidiaries: Particularly in Scootsy, with plans to repay or prepay existing debt.
- Expansion of Dark Stores: Supporting the growing demand for quick commerce services.
- Marketing: To strengthen brand presence and acquire more customers.
- Technology Investments: For enhancing user experience and efficiency.
- Acquisitions: Targeting potential acquisitions to bolster its market presence.
Swiggy’s IPO marks a pivotal moment for the company as it aims to expand its footprint in India’s competitive market. The funds raised will help Swiggy scale its operations, enhance its technology, and explore new avenues for growth.