On November 13, 2024, Swiggy went public on the NSE at a price of INR 420, 7.69% higher than its IPO price of INR 390. At INR 412 on the BSE, it made its debut at a premium of 5.64%.
According to various published reports, the company’s listing is set to open up employee stock option plans worth INR 9,000 crore and propel the meal delivery company’s approximately 500 employees into the “crorepati” league. One of the biggest wealth-creation initiatives in India’s startup sector is expected to benefit 5,000 present and past employees of the Bengaluru-based company.
At a price of INR 390 per share, the highest price range of its initial public offering (IPO), which opened for subscriptions on November 6, Swiggy’s whole Esop pool is estimated to be INR 9,000 crore. Through the buyback of Esops in July of this year, the company has already provided its employees with cash totalling more than INR 500 crore.
Exemption from Lock-In
Swiggy obtained a one-year lock-in period exemption from the Securities and Exchange Board of India (Sebi) in July of this year. This exemption would also enable Swiggy’s employees to sell shares one month following the initial public offering (IPO), increasing their opportunities to build wealth. Over the years, e-commerce giant Flipkart, one of the largest wealth producers in the online economy, has carried out $1.5 billion in Esop buybacks in multiple tranches.
With its INR 9,375 crore IPO in July 2021, Swiggy’s fiercest rival Zomato, one of the first major domestic consumer internet businesses to go public, created 18 millionaires. About 350 employees, both current and past, became crorepatis at the time of Paytm’s first public offering (IPO) in November 2021. The main factor driving the 3.59 subscriptions to Swiggy’s public offering was institutional investors’ interest. For the IPO, the company had specified a price range of INR 371-390 per share.
Esop is Getting More Popular Among Indian Startups
Consumer internet companies are particularly affected by the Esop allocation tendency, which was first made well-known by IT services giants like Infosys. Before going public, these companies usually provide founders and top management with more stock options as incentives. However, as Swiggy has shown, the chance to create income for a larger group of workers can have a number of unintended consequences. Many of the recently graduated “crorepatis” frequently decide to launch their businesses alone. Spending on assets like real estate has also increased.
According to media reports, Swiggy has teamed up with several platforms to finance its employees’ conversion from Esop to stock; this is especially true since they will need to pay taxes before the stocks can be sold on the open market. Employee taxes will be charged to the difference between Swiggy’s current share price and the price at which the Esops were given at the conversion of the Esops.
Until the next hearing, the court barred Swiggy from alienating 24 of a former executive’s exercised stock options and 185.454 vested and unexercised stock options. Arun Cyril, Swiggy’s former assistant vice president, contested his “illegal” dismissal from the foodtech firm and the ESOPs that followed. Swiggy’s initial public offering (IPO) ended on 8 November 2024, with the public offering being oversubscribed 3.59 times on the last day.
For the time being, until the next hearing, a Bengaluru civil court has barred foodtech giant Swiggy from alienating or “creating any charge” on more than 200 stock options owned by a former executive who was fired by the business earlier this year. According to the court’s order dated November 7, defendant No. 1 company (Swiggy) and its directors are prohibited from establishing any charges, interests, or alienating 185.454 vested and unexercised stock options and 24 exercised stock options of the plaintiff until the next hearing date. The next hearing in the case is scheduled for November 23 by the court.
What Lead to Court’s Intervention?
Arun Cyril, the former assistant vice president of Swiggy’s contact centre operations, petitioned for the directives earlier this year.
Cyril, who spent over ten years working at the foodtech major from 2015 to 2024, contested his “illegal” layoff and the company’s subsequent cancellation of his employee stock option plans (ESOPs) in the plea. Swiggy and its rival Zomato were found guilty of violating antitrust regulations and giving preference to specific restaurant chains listed on their platforms, according to a report by a media house earlier today.
In addition, on November 6, the Delhi High Court sent notice to Swiggy and the Competition Commission of India (CCI) regarding a plea submitted by the National Restaurant Association of India (NRAI), contesting the exclusion of the trade association from a confidentiality ring established by the watchdog to investigate purportedly anti-competitive actions by Zomato and Swiggy.
Swiggy’s IPO
Among all of these, Swiggy’s initial public offering (IPO) closed recently, with the deal oversubscribed by 3.59X on the last day. In contrast to the 16.01 Cr shares available, the IPO got bids for 57.53 Cr shares, with qualified institutional investors (QIBs) accounting for the majority of these bids. The IPO consists of an offer for sale (OFS) of 17.5 crore shares and a new issue of shares valued at INR 4,499 crore. For the public offering, Swiggy has specified a price range of INR 371 to INR 390 per share. On November 5, before the issue was made available for public subscription, Swiggy obtained INR 5,085 Cr from anchor investors. On November 13, its shares are now scheduled to go public.
Swiggy’s first quarter (Q1) of the fiscal year 2024–25 (FY25) saw a combined net loss of INR 611 Cr, up more than 8% year over year (YoY). During the reviewed quarter, operating revenue increased 35% year over year to INR 3,222.2 Cr.
We have lived in times when going out to eat meant the celebration of special occasions. Then came a period when visiting a restaurant became almost a weekend thing & now, we live in a ‘Netflix & chill’ era where we prefer food reaching us to going out to eat. And surprisingly this can be done with just a click.
The food & restaurant industry has undergone a huge transformation in the past few decades. One of the many factors that drove this transformation is the online food ordering platforms. Online food ordering today is almost synonymous with Swiggy.
In this article, let’s explore the journey of Sriharsha Majety, one of the brains behind this online food revolution.
Sriharsha Majety Biography
Name
Sriharsha Majety
Birthplace
Andhra Pradesh, India
Nationality
Indian
Education
Electrical and Electronics Engineering, BITS Pilani Master in Physics, BITS Pilani PGDM-Finance, IIM Kolkata
Majety has a diverse and impressive educational background that laid the foundation for his entrepreneurial journey.
He holds an engineering degree in Electrical & Electronics and a Master’s degree in Physics from the Birla Institute of Technology and Science, Pilani.
After his Engineering, he signed up for the CFA Program but soon found that it wasn’t what he wanted to do. Majety had not settled with whatever came his way but always wanted to do things with passion. Further, he went on to pursue a postgraduate diploma in Management at the prestigious Management school, IIM, Calcutta.
This unique blend of technical and business education was instrumental in shaping his vision for the upcoming business adventures.
Majety’s career has many ups, downs & learnings. His professional life started as an Associate at Nomura International, a London-based company. He stayed there for a year before quitting. Later, he quit his job so that he could get connected with the startup ecosystem and build up his own business. He wanted to learn & explore things before jumping into his own business.
He traveled across Europe & Asia and this is what he says about his experience:
“I traveled 3500 km from Portugal to Greece by bicycle over 3 months and continued overland from Turkey to Kazakhstan through public transport and hitchhiking. Using the time from the career switch to gain some perspective and learn more about the world we live in has been my most rewarding decision to date.”
As a beginning to his entrepreneurial journey, in 2013, he along with his BITS companion Nandan Reddy, founded their first venture Bundl. Bundl was a logistics intermediary that linked courier service providers with small and medium-sized businesses.
A year passed by and both of them analysed the market to realise that there was a gap to be filled in the restaurant industry’s logistics which connects restaurants with customers.
Thus, came into the picture, the now-very-popular Swiggy, founded by Majety, Nandan Reddy & Rahul Jaimini who was an IIT Kharagpur alumnus and software engineer.
The journey there onwards, though had ups and downs, has been very successful to the point that Swiggy is one of the first names that comes to our mind when we say online food order.
Founded in 2014, Swiggy is one of the most successful food ordering and delivery platforms which was started as an eCommerce company called Bundl Technologies Pvt. Ltd.
It is headquartered in Bengaluru from where it had started its operations. It initially had six delivery executives and was serving around 25 restaurants. Later in 2015, Swiggy expanded its operations to eight more cities in India including NCR, Mumbai, Chennai, and Kolkata.
Over the years, Swiggy has found huge popularity & spread across many cities all over India. It has also diversified into many new areas like Cloud kitchen service, hyperlocal courier service, hyperlocal shopping, and Kitchen incubator business.
Swiggy also launched “She The Change- From Vision to Venture” to encourage & recognize women entrepreneurs. This initiative highlights how food delivery services support and encourage women’s entrepreneurship around the nation.
With little over 100 restaurant partners in 2015, Swiggy has decided to go public and received the approval of its shareholders for a $1.3 billion IPO in 2024. This stands as a testament to the huge success that Swiggy has acquired in the past ten years.
Majety being the biggest stakeholder among the three founders, is seen as the face of Swiggy.
On 9th October 2024, IPO-bound Swiggy granted $271 million Esops to the founder Sriharsha Majety, and the top management of the company. Majety has been given most of the company’s stock options, worth almost $200 million. This will increase his 6.23% stake in the company by an extra 2.2 to 2.5%. Together with selling shares worth $7.5 million in the IPO, this move makes his position stronger before the company goes public.
Sriharsha hails from a family of entrepreneurs who stand as a great inspiration for him. His father used to own a restaurant in Vijayawada, Andhra Pradesh. His mother is a doctor.
He is married to Neetha Majety whom he had met in IIM Kolkata.
Sriharsha, unlike many other successful business giants, stays below the radar & doesn’t seem to like the limelight much. Not much is known about his family as he is generally seen talking more about business in interviews.
Sriharsha Majety – Personal Investments
Below are the personal investments made by Sriharsha Majety:
Announced Date
Organization Name
Lead Investor
Funding Round
February 13, 2023
Stable Money
–
Seed Round
December 28, 2022
The Whole Truth
–
Series B
December 8, 2022
Vidyut
–
Seed Round
December 6, 2022
Virgio
–
Series A
November 1, 2022
Virgio
–
Series A
September 1, 2022
Tortoise
–
Seed Round
May 18, 2022
Blissclub
–
Series A
February 2, 2022
Headout
–
Series B
July 7, 2021
The Whole Truth
–
Series A
May 2, 2019
Pesto Tech
–
Seed Round
Sriharsha Majety – Partner Investments
Sriharsha also made some partner investments and below is the detail about them:
Announced Date
Organization Name
Lead Investor
Funding Round
April 17, 2022
Urban Piper
–
Series B
April 15, 2022
Rapido
Yes
Series D
Sriharsha Majety – Awards & Recognitions
Sriharsha has been awarded with the following accolades:
The Economic Times recognized Majety with the “Entrepreneur of the Year” Award in 2019.
He was also enlisted under IIFL Wealth Hurun India 40 & Under Self-Made Rich List 202
Sriharsha Majety – Quotes
Talking about Swiggy, he says,
💡
A culture of innovation is who we are at Swiggy. We have a huge, crazy love for tinkering and we’re always pushing boundaries.
While talking at the 6th Edition of ASCENT eConclave 2021, he says, “It has been a very character-building year for me. I find myself asking deeper questions every time while deciding what can go wrong and doing premortems a lot better.”
FAQs
Who is Sriharsha Majety?
Sriharsha Majety is co-founder and CEO of Swiggy.
What is Swiggy?
Swiggy is an Indian online food ordering and delivery platform, founded in 2014. Headquartered in Bangalore, Swiggy operates in over 580 cities across India as of July 2023.
What is Sriharsha Majety education?
Sriharsha holds an engineering degree in Electrical & Electronics and a Master’s degree in Physics from the Birla Institute of Technology and Science, Pilani. After his Engineering, he signed up for the CFA Program but soon found that it wasn’t what he wanted to do. Further, he went on to pursue a postgraduate diploma in Management at the prestigious management school, IIM, Calcutta.
Who is Sriharsha Majety wife?
Sriharsha Majety is married to Neetha Majety whom he had met in IIM Kolkata.
Swiggy has been making the lives of urban customers more convenient for customers since 2014. Since Swiggy was founded, it has acquired five companies and subsidiaries as it has expanded its empire and diversified its business. The leading on-demand food delivery platform is now a logistics hub of excellence.
Swiggy is a food tech company with its headquarters placed at Bangalore, India. The company was founded back in 2014 by the efforts of Nandan Reddy, Phanu Kishan Addepalli, Rahul Jaimini, and Sriharsha Majety.
The current CEO of the firm is Sriharsha Majety. Some of the most popular competitors of Swiggy are Fresh Menu, Zomato, Uber Eats, Grofers, etc. The six acquisitions made by Swiggy are:
LYNK Logistics is a company that distributes fast-moving consumer goods (FMCG) to retail stores. LYNK, founded in 2015 and based in Chennai, works with FMCG brands to supply products to stores. It has a network of over 100,000 retail stores in eight cities.
Lynk is creating a complete platform to help consumer brands reach 80% of India’s buyers, who shop mainly at small Kirana stores. Using strong technology, they are improving how brands reach the market, building a modern supply chain for local trade, and making it easier for Kirana stores to get credit on a large scale.
They have partnered with many well-known consumer brands across India’s major cities and have a fast-growing network of Kirana stores.
Swiggy acquired Link Logistics in July 2023 for $23 million. This move marks Swiggy’s first step into the retail business-to-business (B2B) sector.
Dineout
Founded
2012
Founders
Ankit Mehrotra, Vivek Kapoor, Nikhil Bakshi, and Sahil Jain
Industry
Food and Technology
Acquired In
2021
Status
Active
Website
www.dineout.co.in
Swiggy Acquisitions – Dineout Website
Dineout was born when its founders landed their first investment from Travel Boutique Online. They finally made their breakthrough when it was acquired by Times Internet. The startup has also expanded its empire over the years by acquiring inResto, Gourmet Passport, and Torqus.
Eventually, around 2016, they launched Dineout Plus coming up with brand-new offerings for their audiences like a corporate dining rewards program that gave a flat 25% discount at 5-star restaurants, and an exclusive bill payment wallet for diners: Dine Out Pay.
The startup has also come up with a month-long campaign GIRF (The Great Indian Restaurant Festival) to create amazing experiences and offer bigger deals for their customers. With their B2B and B2C services, they have partnered with many restaurants across their network of around 20 cities.
India’s largest dining out and restaurant tech solutions platform helps diners discover restaurants and offers, enabling hassle-free reservations.
Swiggy saw the opportunity to expand its offerings in dining out table reservations and events with a leading dining out and restaurant tech platform on July 22, 2021. This will enable Swiggy to cater to every food occasion. Reach more customers and expand growth opportunities. Revolutionizing the restaurant industry. Improving the customer experience at the restaurant and delighting customers. Dineout was acquired by Swiggy in May 2022.
Supr Daily allows you to buy groceries through an online platform with a wide selection of organic and healthy foods.
Additionally, it also provides options from other categories such as baby care, pet needs, and more to your doorstep. Pioneering the grocery revolution in India, it is currently operating in more than eight cities.
The startup operates with the motto “Do more, with less” aiming to make their customers happy, and give them a stress-free start to the day and a superior consumer experience.
Swiggy acquired Supr Daily in 2018 to create a niche in solving critical consumer needs and fulfilling their daily orders, expanding its channels for revenue. Since then, the startup has been revamped to unlock its potential and share its mission with Swiggy.
Forty-Eight East is a food tech startup that brings you the cuisines of different nations: South Asia, South East Asia, Central Asia, East Asia, and the Middle East.
Providing international taste to its customers with a weekly changing menu in a quick-service restaurant setting. Starting with the idea of bringing different Asian delicacies beyond noodles and Thai food to the Indian people, Joseph Cherian started setting up a kitchen in Bengaluru Karnataka. He was joined by friend and chef Nabhojit Ghosh. Which later expanded from one kitchen to eight.
Things took a turn when Joseph Cherian joined Swiggy as COO after the startup was acquired by it in 2017. Swiggy acquired 48 East with the purpose of solving gaps in its consumer supply through various strategies. Equipping Swiggy with additional capabilities, broadening its senior leadership, and serving a more satisfying consumer experience.
Kint.io
Founded
2014
Founders
Jagannathan Veeraraghavan, Pavithra Solai Jawahar
Industry
Artificial intelligence, Computer
Acquired In
2019
Status
In-Active
Website
www.kint.io
Swiggy Acquisitions – Kint.io Logo
The local Bengaluru-based AI platform known for designing and developing software was the first technology-led acquisition for Swiggy. Kint.io, which is led by Jagannathan Veeraraghavan and Pavithra Solai Jawahar, applies deep learning and computer vision to object recognition in videos.
Several founding members joined Swiggy’s team to boost computer vision technology, consumer experience, and scale tech capabilities by bringing in entrepreneurial teams that solve unique customer problems. All the while leveraging the network and resources of Swiggy.
Swiggy made a smart move as consumer intent companies are rapidly growing to stay ahead of the game and make a profit in the long term. The aim is to use the platform to help people apply and discover restaurants using images and recommendations based on them. Enhancing the company’s computer vision technology and improving the overall consumer experience.
Scootsy Logistics Private Limited
Founded
2015
Founders
Rishi Khiani, Sandeep Das, Yash Sippy
Industry
Transportation, Logistics, and Storage
Acquired In
2018
Status
Active
Website
www.scootsy.com
Swiggy Acquisitions – Scootsy
Starting with Ant Farm one can turn to Scootsy for quick, curated delivery across the city. The Mumbai-based startup was founded by former Times Internet chief executive Rishi Khiani, Sandeep Das, and Khiani the co-founders of Scootsy. The platform offers quality experiences to its discerning consumers.
Following an acquisition, the company further partnered up with Burger King. The experience of ordering from the platform itself is described as the closest one can get to eating at a fine dining establishment. They have a curated list of restaurants, food stores, boutiques, and gift shops to make your life easier and better.
Swiggy acquired Scootsy for approximately ₹ 50 crores according to sources in 2018. Swiggy plans to expand into new cities, tap into orders from high-end restaurants, and strengthen its restaurant network. Over time, Swiggy has transitioned Scootsy’s operations to its platform and integrated Scootsy to deliver premium culinary offerings in Mumbai.
Conclusion
Swiggy has been in the market for almost 8 years. Swiggy was started as an online food delivery platform that is now operating in more than 500 Indian cities. Swiggy has a constant focus on implementing new technologies and creating data-driven marketing approaches.
In order to improve its services, Swiggy has acquired multiple startups along the path. The startups acquired by Swiggy are Dineout, Kint.io, Scootsy Logistics Private Limited, 48East, and Supr Daily.
FAQs
How much does Swiggy Acquire Dineout for?
Swiggy acquired Dineout for almost $200 million on 14th Feb 2022.
Did Swiggy Acquire Instamart?
Swiggy launched Instamart on 10 August 2020.
Has Zomato acquired Swiggy?
Swiggy is the biggest competitor of Zomato. However, there were reports of a stock-based merger proposed by Swiggy which eventually came to a dead end because of the difference in both companies’ valuations and business ailments.
Swiggy acquired which company?
Swiggy has acquired 6 companies to date, which are LYNK Logistics, Dineout, Kint, Scootsy, Supr Daily, and 48East.
Swiggy is owned by which company?
Swiggy is owned by Prosus, SoftBank Group, and Accel and it was founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.
More than 75 anchor investors have contributed about INR 5,085 crore (about $600 million) to Swiggy, one of the top food and grocery delivery services in India. The Bengaluru-based business, which rivals Zomato, which is run by Deepinder Goyal, revealed the investment in a stock exchange filing on 5 November 2024.
Specifications of the IPO: Scale and Composition
The INR 11,327.43 crore Swiggy IPO consists of a primary issuance as well as a secondary offering by current shareholders. The secondary offering, also known as the Offer for Sale (OFS), is worth INR 6,828 crore, while the primary issue, or fresh money raise, is worth INR 4,499 crore.
Second only to Zomato’s public debut in 2021, this IPO is anticipated to be among the biggest in India this year and among the largest in the food technology sector. Swiggy wants to be valued at INR 87,300 crore ($11.3 billion), which is at the upper end of the pricing range of INR 371-390.
Important Investors and Allocation Information
Swiggy’s anchor segment has been supported by a wide range of domestic and foreign investors, with a sizable percentage of the shares going to Indian institutions. SBI Mutual Fund, Kotak Mutual Fund, HDFC Life, and Axis Mutual Fund are examples of domestic investors.
By indicating strong institutional backing, the anchor allocations are intended to stabilise the IPO and perhaps draw in more retail and non-institutional investors.
Evaluation and Financial Performance
Swiggy has prioritised expansion, as seen by its most recent financial reports, which show notable advancements. Swiggy reported revenue of INR 11,247 crore for FY24, up 36% from INR 8,265 crore for FY23.
In comparison to the prior fiscal year, losses also significantly decreased, falling 44% to Rs 2,350 crore. The business’s future growth, especially in its network of dark stores, as well as investments in marketing, technology, and possible acquisitions, will be financed by the IPO proceeds from the main issue.
In an attempt to fortify its position against its main rival, Zomato, which has a market worth of INR 2.1 trillion, or INR 2.18 lakh crore (as of November 6, 2024), Swiggy has entered the public market.
Current Anchor Book Investors
Notable international investors that have made anchor book investments in the company include New World Fund, Fidelity, Omnis Portfolio Investments, Nomura, Government Pension Fund Global, PGGM World Equity, Blackrock, Carmignac, Eastspring Investments, Citigroup, TOCU Europe, Integrated Core Strategies, CLSA, Matthews Asia Funds, and Societe Generale.
ICICI Prudential Mutual Fund, Kotak Mahindra AMC, SBI Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Trustee, 360 ONE, Mirae Asset, Nippon Life India, Bandhan Mutual Fund, Invesco India, Motilal Oswal Mutual Fund, Sundaram MF, Tata MF, UTI Mutual Fund, DSP India Fund, Ashoka Whiteoak, Baroda PNB Paribas, Helios MF, and Avendus were among the domestic institutional investors that took part in the anchor book.
Do you wish to have a delicious bite of blueberry cheesecake in the middle of the day at work or a hearty biryani meal for lunch?
Moving out of your house, facing the relentless traffic, unending queues at restaurants and cafes, waiting for your order, etc., sounds demotivating as always. They were some of the major hindrances between a person and his/her food. However, things have changed since August 2014.
Yes, with the birth of Swiggy, ordering food has been revolutionized in India; it has become as easy as one wants it to be.
With the launch of Swiggy, often dubbed as one of India’s fastest-growing companies, ordering food at home, office, or even while throwing a party seems like a breeze. Swiggy is a hyper-local food delivery application founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini in Bengaluru’s neighborhood, Koramangala. Swiggy has been quite popular even in its early days; it witnessed an exemplary expansion and is carrying on its successful legacy till now!
Here’s more about Swiggy, its Founders and team, Startup Story, its vision and mission, its Business and Revenue Model, Funding and investors, Growth, Competitors, Challenges, Awards and Recognition, and more.
Swiggy is a food delivery platform at its core, the services of which can be accessed from Android and IOS devices, and through the website. It partners with a wide range of restaurants and provides easy access to diverse food dishes from varying cuisines. Furthermore, it also accepts feedback and ratings from the customers that help others pick their restaurants and choices of dishes wisely.
As soon as a delivery is done, the customer is entitled to give feedback, and rate the food, and the delivery services. This insightful feedback guarantees that Swiggy keeps up its quality standards and that the user experience is always being improved.
A Statista report analysis indicates that the Indian online food delivery business is expected to develop significantly, with an anticipated revenue of US $43.78 billion by 2024. The sector exhibits strong potential for progress, as evidenced by the astounding 16.14% annual growth rate (CAGR 2024-2029) that this surge represents.
The market size is expected to reach US $92.50 billion by 2029, highlighting the enormous potential in India’s rapidly expanding online meal delivery sector. This prediction emphasizes how changing customer tastes and technology breakthroughs are changing the face of the food sector and leading to a greater dependence on digital platforms for meal delivery services.
Swiggy – Founders and Team
Lakshmi Nandan Reddy, Rahul Jaimini, and Sriharsha Majety (CEO and Co-Founder) founded Swiggy in 2014.
Lakshmi Nandan Reddy, Rahul Jaimini, and Sriharsha Majety (CEO and Co-Founder) are Co-Founders of Swiggy (Left to Right)
Sriharsha Majety
Sriharsha Majety is the CEO and Co-Founder of Swiggy. He had completed a B.E in Electrical and Electronics along with an M.Sc in Physics from BITS Pilani in the year 2008. Sriharsha then went to study the CFA program at the CFA Institute and managed to complete level II of the program.
After this, he considered enrolling for an MBA in Finance and chose IIM, Calcutta, from where he graduated in 2011. Before Swiggy, Majety worked as the recruitment coordinator for IIM and was also a part of the rates trading Desk in London at Nomura International. In the year 2013, he co-founded Bundl Technologies Pvt Ltd along with Nandan Reddy, which became the cradle for Swiggy.
Lakshmi Nandan Reddy
Lakshmi Nandan Reddy is the Co-Founder of Swiggy. He is also a BITS Pilani alumnus, who pursued M.Sc from the same college and completed it in 2010. Reddy worked as the head of the operations of social media at SourcePilani, the first BPO for rural India, for about 2 years. He was the founding partner of Zurna, a restaurant in Hyderabad, after which he co-founded Bundl, which later on led to Swiggy.
Rahul Jaimini
Rahul Jaimini, who worked as a Senior Software Engineer at Myntra, joined Majety and Nandan to build the application for Swiggy. Rahul completed a Dual Degree from IIT Kharagpur in Computer Science & Engineering in 2010. He has also worked for companies like Philips Research and Netapp. Jaimini left the organization in May 2020 and Co-Founded Pesto Tech.
Swiggy operates with 1,001 – 5,000employees as per LinkedIn.
Swiggy – Startup Story
Swiggy wasn’t started as a food delivery business. Yes, you might hear this for the first time, but it is how it is. Sriharsha spent over 6 months cycling across Europe with a business idea in 2013. The first idea that struck his mind was that of a backpacking chain of hostels that would help foreigners when they look to visit India.
In the same year, Sriharsha and Nandan came together to build a company that would empower courier services across the country and would stand as a logistics solution. They named it Bundl Technologies Private Limited. However, Bundl did not turn out successful and forced the founders to shut down the business in 2014. Following its failure, Majety began his research and discovered much potential in the food industry. This led to the birth of Swiggy, an online food delivery company. They met Rahul Jaimini, who helped them build the software, and the company was finally founded in August 2014.
When Swiggy came to the market, the food delivery sector already had applications like Foodpanda, Tinyowl, and Ola Café. Foodpanda and Tinyowl were later acquired by Ola Cabs and Zomato respectively, and Ola café was eventually shut down, just barely a year old. While all these companies struggled, Swiggy started in 2014 with 6 delivery boys providing food from 25 restaurants, and at the end of its first year, in March 2015, the company served 1 million orders per month. This is how the journey started for the food tech giant.
Swiggy – Mission and Vision
The mission on the company’s website states “Our mission is to elevate the quality of life for the urban consumer with unparalleled convenience. Convenience is what makes us tick. It’s what makes us get out of bed and say, “Let’s do this.”
The Swiggy Vision is “to be the leading local service provider in India. By offering a wide range of service alternatives, they hope to redefine ease for all users and become the country’s easiest and most accessible platform.”
Swiggy – Name and Logo
Swiggy Logo
Swiggy parent company is “Bundl Technologies Private Limited.”
Swiggy – Products and Features
Swiggy has launched many products and features. Some of the features are:
Swiggy Photoshoot: To improve the visual attractiveness of restaurant menus, Swiggy introduces an AI-based solution on November 8, 2023
Swiggy Introduces Learning Station: To offer customized content for restaurant partners’ growth, Swiggy Presents Learning Station on September 13, 2023
The Swiggy Moonlighting Policy permits delivery employees to work regular jobs in addition to extracurricular activities on August 24, 2023
Swiggy Menu Score Tool, which provides restaurant partners with data-driven recommendations to increase conversions in 2023
Co-branded credit cards were introduced by Swiggy in collaboration with Mastercard and HDFC Bank to improve customers’ purchasing experiences on July 26, 2023
Swiggy WhatToEat function, which allows users to browse meal options according to their appetites and moods on July 2023
With the launch of Swiggy Mini, fee-free product sales are now possible throughout India on April 2023
Swiggy Launchpad: Offering new restaurant partners a commission-free first month, Swiggy Launchpad is live as per the news report of March 2023
Swiggy Dine Out Offers: Providing millions of Swiggy users in 24 cities with discounts at over 18,000 restaurants in February 2022
Swiggy Extends Cloud Cooking Business: To open restaurants in new areas, Swiggy is extending its Cloud Kitchen program in July 2022
Swiggy Affiliate Program: Offering a lucrative affiliate program to people who send Swiggy customers
Swiggy – Business Model
Swiggy has established itself as a major participant in the hyperlocal on-demand food delivery market by using state-of-the-art technology to link consumers with their preferred restaurants and vital suppliers. With a large selection of eateries and retail establishments including extensive menus and pricing, the platform provides a one-stop shop for consumers looking for convenience and diversity.
In addition to delivering food, Swiggy also offers services for buying groceries and other requirements, which strengthens its value proposition and meets a range of customer demands. Swiggy’s operations revolve around crucial tasks like overseeing payment and delivery procedures, establishing alliances with nearby businesses, and orienting delivery providers and suppliers to guarantee smooth transactions and effective services.
Swiggy’s client segmentation demonstrates its flexibility and dedication to satisfying changing customer needs. It serves a range of consumer demographics, such as those who enjoy the ease of placing orders from home, look for hassle-free online shopping, or depend on delivery services for their purchases.
Enabled by a strong technological infrastructure, a large network of local partners, and a specialized delivery fleet, Swiggy maintains its dedication to efficiency, dependability, and client happiness. Swiggy is a leader in hyperlocal delivery, and it will continue to improve the overall consumer experience by offering unmatched convenience and flexibility with features like unconstrained ordering, easy online payments, and a variety of payment options.
Swiggy has expanded its streams of revenue throughout the years. Here are some prominent streams that the company currently draws its revenue from:
Delivery charges
Customers are Swiggy’s main source of income. A little delivery cost is charged by the business, and it goes up based on the overall amount of the order. Moreover, Swiggy frequently increases the fees during periods of exceptional weather or excessive demand.
Commissions
The commissions that Swiggy gets are a significant source of income for the company. These commissions are gathered from the eateries to produce sales leads and use Swiggy’s fleet to deliver the food.
Advertising
Swiggy also earns some revenue with:
Banner Promotions – Swiggy encourages restaurants to promote their brand via display ads on its app. This helps all the restaurants that are partnered with Swiggy from different regions, to receive considerable visibility against the payments they make.
Priority listing of restaurants – Swiggy has an option for priority listing and in them, the company includes select restaurants against premium rates. A restaurant has to pay more if it wants to be displayed ahead of its peers.
Platform Fees
Swiggy is also earning revenue from platform fees, which started in April 2023 in cities like Bangalore, Hyderabad, and Chennai. They are charging Rs. 2 as a platform fees for every order.
Swiggy Access
Produces income by renting out fully functional cooking areas to restaurant partners, allowing them to grow into new neighborhoods. Swiggy Super Memberships: Offers members advantages like priority issue resolution and spike price-free orders in exchange for a subscription-based income stream.
Swiggy Go
Expand revenue sources by generating a new revenue stream for the business by providing quick package pick-and-drop services.
Instamart
Produces income via expedited grocery delivery, guaranteeing prompt delivery and meeting clients’ urgent requirements.
Swiggy Genie
Makes money by charging for on-demand pick-and-drop services for a range of products, giving consumers convenience and making money from the delivery process.
Swiggy Bazaar
To enter the social commerce space, Swiggy intends to make money by offering fresh farm produce and food FMCG on its platform.
Affiliate Income
Increases sales for the partner company and brings in money by collaborating with financial institutions to provide clients discounts when they use their credit and debit cards.
Swiggy has demonstrated its dedication to rewarding its employees through its Employee Stock Ownership Plan (ESOP) liquidity program since 2021. With a start date of June 2022 and a value of $23 million, the first tranche offered benefits to about 900 workers.
With this initiative, Swiggy is demonstrating its commitment to recognizing and rewarding its workforce—it has held four liquidity events since 2018. Building on this momentum, Swiggy further demonstrated its dedication to employee engagement and retention when it announced that the second phase of its ESOP liquidity program will be with a total investment of $50 million as per the news report of July 2023.
Swiggy – Challenges Faced
Swiggy has faced numerous difficulties since its founding, some of which are carried over from Bundl. Swiggy deals with a plethora of challenges every day, ranging from making sure the app runs smoothly to managing relationships with restaurants and delivery partners and skillfully negotiating revenue channels while responding to unfavorable reviews.
Notably, the platform experienced labor unrest when delivery executives went on strike in Bangalore and Mumbai, demanding better pay and working conditions. The untimely demise of a Swiggy delivery worker in Hyderabad brought attention to the dangers of the profession.
Swiggy had unheard-of challenges during the COVID-19 outbreak, but the company quickly adjusted, putting in place safety precautions for its employees and enduring layoffs. Swiggy was also forced to temporarily halt Swiggy Genie operations and reduce services like Supr Daily due to operational difficulties. Despite these difficulties, Swiggy’s fortitude is evident as it works to overcome setbacks and advance in the very competitive food technology market.
Swiggy – Funding and Investors
Swiggy has seen a total of $3.8 billion worth of funding over 19 rounds.
Swiggy raised INR 5,085 crore from anchor investors ahead of Its IPO launch on November 5, 2024. Over 75 investors, including BlackRock, Fidelity, Nomura, BNP Paribas, and Allianz Global, invested in the anchor portion of Swiggy’s IPO.
Amitabh Bachchan’s family office has purchased a small stake in Swiggy by buying shares from the company’s employees and early investors, according to sources. Raamdeo Agrawal, chairman of Motilal Oswal Financial Services, has also invested in Swiggy, as quick-commerce companies are currently seeing a surge in fundraising. Additionally, Hindustan Composite’s board has agreed to buy 1,50,000 equity shares in Swiggy, investing INR 5.17 crore, as per a disclosure made through the National Stock Exchange (NSE).
Date
Stage
Amount
Investors/Shareholders
October 28, 2024
Secondary Market
$200M
–
September 18, 2024
Secondary Market
₹30M
–
August 28, 2024
Venture Round
–
Amitabh Bachchan’s Family House
August 2, 2024
Funding Round
–
Manu PS
January 24, 2022
Venture Round
$700 million
Invesco
July 12, 2021
Series J
$450 million
SoftBank Vision Fund 2, Accel Partners, Prosus
April 5, 2021
Series J
$800 million
Falcon Edge Capital, Prosus Ventures
May 19, 2020
Venture Round
$1.9 million
–
April 6, 2020
Series I
$43 million
–
February 19, 2020
Series I
$113 million
Prosus Ventures
December 20, 2018
Series H
$1 billion
Prosus Ventures
June 21, 2018
Series G
$210 million
Prosus Ventures and DST Global
February 8, 2018
Series F
$100 million
Prosus Ventures
May 30, 2017
Series E
$80 million
–
January 1, 2017
Debt Financing
$5 million
–
Swiggy – Investments
Swiggy has made a total of 7 investments to date.
Here’s the list of the Swiggy investments:
Date
Company Name
Funding Round
Lead Investor
Deal Value
December 22, 2023
kitchens@
Series C
$65 million
October 4, 2023
Altitude Club
Pre Seed Round
$500K
April 17, 2022
UrbanPiper
Series B
No
$24 million
April 15, 2022
Rapido
Series D
Yes
$180 million
February 22, 2021
Fingerlix
Series C
No
$2.57 million
February 1, 2021
Maverix Platforms
Series C
No
$200 million
April 7, 2020
Fingerlix
Series C
No
$1.9 million
February 26, 2019
Fingerlix
Series C
Yes
$4.4 million
Exit
Swiggy has exited from Fingerlix.
Swiggy – Acquisitions
Swiggy has acquired 6 companies to date.
Here’s a glimpse at all the companies that Swiggy has acquired:
Name of the Acquired Company
Date of Announcement
Cost of Acquisition
LYNK Logistics
Jul 13, 2023
–
Dineout
May 13, 2022
$200 million
Kint.io
February 4, 2019
–
Supr Daily
September 1, 2018
–
Scootsy
August 2, 2018
$8 million
48East
December 13, 2017
–
Swiggy – Growth
Swiggy Growth Highlights are:
It has 1,50,000+ restaurant partners countrywide as of April 2024
It has 2,60,000+ delivery executives as of April 2024
It has a presence in 500+ cities inPAN India as of April 2024
The valuation of Swiggy is $12.7 billion as per news report of April 9, 2024
Swiggy Financials FY24
Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy’s total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.
Swiggy Financials FY24
Swiggy Financials
FY23
FY24
Operating Revenue
INR 8265 crore
INR 11247 crore
Total Expenditure
INR 12884 crore
INR 13947 crore
Procurement Costs
INR 3381 crore
INR 4604 crore
Employee Benefit Expense
INR 2130 crore
INR 2012 crore
Advertising Expense
INR 2501 crore
INR 1851 crore
Delivery & Related Charges
INR 1694 crore
INR 1637 crore
Net Loss/Profit
INR -4179 crore
INR -2350 crore
Swiggy – IPO
Swiggy plans to raise INR 5,000 crore through its upcoming IPO and will ask shareholders for approval at an EGM on October 3, 2024. For the year ending March 31, 2024, Swiggy saw a 36% growth in operating revenue and reduced its net loss by 44%. The company had earlier aimed to raise INR 3,750 crore in fresh funds and an INR 6,664 crore offer for sale. However, the final size of the IPO may change from what it is currently asking shareholders to approve. Swiggy opened its IPO on November 6, 2024, with allotment scheduled for November 11. Swiggy’s IPO listing date is scheduled for November 13.
As of October 2024, Swiggy has reduced its valuation by 10-16% to around $12.5-13.5 billion for its upcoming IPO because of recent market fluctuations. According to Reuters, Swiggy made this move in response to volatility in the Indian stock markets, aiming to ensure that investors who bid during the IPO have strong potential for returns.
Swiggy – Campaigns
Swiggy Campaign
“Sharma Ji Ki Beti,” Swiggy Dineout’s campaign, aims to change Indian customers’ dining-out experiences. The campaign, which was created by Toaster India, fits in with Swiggy Dineout’s strategic aim to raise its profile during one of the company’s yearly flagship events, the Great Indian Restaurant Festival (GIRF).
With this innovative campaign, we hope to challenge the norms around dining out and provide consumers across the country with a remarkable dining experience.
Swiggy is aiming for a valuation of about $15 billion in its upcoming stock market debut, where it plans to raise $1-1.2 billion as per the sources. As of October 24, 2024, Swiggy has reduced its valuation by 10-16% to around $12.5-13.5 billion for its upcoming IPO due to recent market fluctuations. If successful, it would be one of the largest Indian initial public offerings (IPOs) this year.
Swiggy formally became a public company on April 8, 2024. The company’s status with the Registrar of Companies has been updated after a resolution adopted by its board of directors. This update represents a significant step towards the company’s definitive initial public offering (IPO) plan, which is slated to take place in the second half of this year. The holding company’s name has been changed from Swiggy Private Limited to Swiggy Limited as part of this transformation, reflecting its development as a publicly traded company.
After reaching this momentous milestone, Swiggy hopes to take advantage of its newfound prominence and start growing and expanding to fully utilize the enormous potential of the public markets. This calculated action highlights Swiggy’s dedication to seizing fresh opportunities, increasing shareholder value, and reaffirming its position as the industry leader in rapid commerce and food.
FAQs
Who is the founder of Swiggy?
Rahul Jaimini, Sriharsha Majety, and Nandan Reddy are the founders of Swiggy, who founded the company in 2014.
What is Swiggy?
Swiggy is a food delivery platform at its core, the services of which can be accessed from Android and IOS devices, and through the website. It partners with a wide range of restaurants and provides easy access to diverse food dishes from varying cuisines.
Which is Swiggy’s parent company?
Swiggy parent company is Bundl Technologies Private Limited.
What is Swiggy tagline?
Swiggy has many taglines depending on its campaigns but the tagline “No Order Too Small” brought it a recognition from Star Re. Imagine Awards.
What is mission and vision of Swiggy?
Swiggy mission states,“Our mission is to elevate the quality of life for the urban consumer with unparalleled convenience. Convenience is what makes us tick. It’s what makes us get out of bed and say, “Let’s do this.”
Swiggy Vision is “to be the leading local service provider in India. By offering a wide range of service alternatives, they hope to redefine ease for all users and become the country’s easiest and most accessible platform.”
What is Swiggy’s Customer Care Number?
Swiggy focuses on dealing with a bunch of customer queries with its comprehensive chat support instead of attending to a bunch of customers and keeping them waiting on their phone lines. With Swiggy’s easy chat support, a customer just needs to initiate a chat and initially answer the bot, which later redirects them to real advisors who solve their queries. Furthermore, the customers can also drop their issues at support@swiggy.in.
How did Swiggy start?
Swiggy was started by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, an IIT Kharagpur alumni who agreed to code for the platform. The company was founded in 2014, in Koramangala, Bangalore.
Is Swiggy running in loss?
Food delivery giant Swiggy (Bundl Technologies Private Limited) has reported its revenues for the financial year 2023 at Rs 8264.6 crore, an increase since the last financial year. The company further reported a net loss of Rs 4,179 crore. Though the losses have increased from Rs 3,629 crore, which Swiggy witnessed in FY22, Swiggy is certainly running in losses!
How can a restaurant partner with Swiggy?
A restaurant can simply mail Swiggy at partnersupport@swiggy.in and follow all the instructions.
Is there a minimum order value for ordering at Swiggy?
The short answer is No. If you want to order at Swiggy, you can do it without any further worries about any minimum order value that you must maintain.
What is the Swiggy affiliate program?
The Swiggy affiliate program is an initiative of Swiggy, which lets Swiggy users stand a chance to earn the highest payout.
What is the Swiggy Instamart website?
Swiggy Instamart doesn’t have a new website. However, if the users want to visit Swiggy Instamart on the Swiggy website, then they just need to go to the Instamart section of the website.
What are some Swiggy alternatives?
Some of the Swiggy alternatives are:
Zomato
DoorDash
GrubHub
Postmates
Deliveroo
Faasos
Box8
Is Supr Daily acquired by Swiggy?
Supr Daily, a milk delivery startup in Mumbai, was acquired by Swiggy in September 2021.
In an effort to broaden its selection and provide 10-minute medication delivery, Swiggy, an IPO-bound food and grocery delivery service, has teamed up with PharmEasy. The Bengaluru-based company doesn’t need any more governmental approvals for this venture because it is collaborating with the e-pharmacy company.
Indeed, Swiggy was already using Instamart, the company’s rapid commerce division, to distribute basic over-the-counter (OTC) medications, including pain reliever sprays and other items. Swiggy will expand into the e-pharmacy market with this new cooperation in order to reach a wider audience.
Testing its Pilot Project in Bengaluru
In Bengaluru, where it is first testing this service, Swiggy will transport medications such as painkillers, fever medications, and medications that need a valid prescription. According to a media report, a doctor can create the prescription during a consultation on Pharmeasy, or the patient can upload it.
In an effort to increase average order values (AOVs) and boost profitability, fast commerce companies are now venturing into new markets.
How Swiggy Plans to Operate its Medical Delivery Services?
Through its Instamart service, Swiggy might be able to deliver prescription medications to customers’ doorsteps in ten minutes due to this collaboration. According to reports, Pharmeasy has also opened locations within Swiggy’s dark stores as part of the campaign. Swiggy will begin providing medications that need a legitimate prescription, such as painkillers and fever medications.
Instamart’s dark stores use a novel “shop-in-shop” architecture that enables Swiggy to deliver prescribed medications—a first for quick commerce. Despite growing revenue, Swiggy is taking this action in an effort to boost average order values and to reduce its growing losses.
Swiggy’s Financial Report
According to the company’s latest draft red herring prospectus (DRHP), food tech giant Swiggy’s losses increased by 8% to INR 611 crore in Q1 FY25 from INR 564 crore in the same period last year due to growing expenses. The company’s expenditures for the three months were INR 3,908 crore, a 27% increase over the INR 3,073 crore spent in the previous fiscal year.
During the April-June period of the current fiscal year, Swiggy’s operational revenue was INR 3,222.2 crore, a 35 percent increase over the INR 2,389.8 crore for the same period the year before. In contrast, Zomato, its publicly traded competitor, made INR 253 crore in Q1 FY25 after generating INR 4,206 crore in revenue (a 74% increase year over year).
Overall, Swiggy’s sales increased 36% from INR 8,265 crore to INR 11,247 crore in FY24. Thanks to better cost control, their losses during this time decreased by 44% to INR 2,350 crore from INR 4,179 crore.
Various media reports cited that food delivery giant Swiggy intends to list at a valuation of $11.3 billion for its forthcoming IPO. Listing at a higher valuation of $15 billion or more was the previous goal. However, Swiggy has cut its IPO valuation target in order to increase the participation of individual investors and because of the current volatility in the Indian stock market.
The most recent private market valuation was $10.3 billion at the time Invesco invested. After November 6, 2024, the Swiggy IPO issue is scheduled to open for subscriptions. The book is anticipated to be anchored by about 30 foreign investors. However, the company has not yet released any official statement on these published media reports.
Swiggy’s Listed Competitors in the Midst of Volatile Markets
Zomato and Swiggy are rivals in India’s online restaurant and cafe meal delivery market. Both have placed significant wagers on the recent “quick commerce boom,” which promises 10-minute delivery of groceries and other goods.
Due to high valuations, ongoing withdrawals of foreign funds, and geopolitical issues, the Indian stock market is currently experiencing a downturn. A widespread selloff occurred when the local equity indexes, the Nifty 50 and Sensex, recorded their longest weekly losing streak in 14 months. Just a few days before Diwali and the start of Samvat 2081, indexes plunged into a bear market due to the atmosphere being further dampened by lacklustre corporate earnings.
The stock price of Zomato saw a significant correction in the present market conditions. Zomato’s stock price was INR 265.70 on the BSE on October 21. The new-age internet stock fell more than 5% over the week, plunging to INR 253.85 on the BSE in five consecutive trading sessions.
At INR 2,24,310.54 crore, Zomato’s market capitalisation is higher than Swiggy’s anticipated $11.3 valuation. With additional revenue sources from its B2B hyperpure business and Blinkit, Zomato’s food delivery service accounts for 46.17 percent of its total revenue. Its service portfolio has been further expanded with the recent acquisition of Paytm’s ticketing division.
The Specifics of Swiggy’s IPO
Supported by Prosus and SoftBank, Swiggy is anticipated to go public on the stock exchanges in November 2024. Beginning on October 30, the massive online meal delivery company intends to do roadshows for its stock offering in numerous Indian cities. According to the revised draft red herring prospectus-I (UDRHP-I), the proposed IPO entails the sale of 18.52 crore equity shares held by current shareholders through an offer-for-sale (OFS) and the issue of new equity shares valued at INR 3,750 crore.
Swiggy is contemplating a pre-IPO round to raise money, and if it is successful, the new issuance’s size will be modified appropriately. There are sections of the IPO dedicated to mutual funds, anchor investors, and qualified institutional buyers (QIBs). With a third of the allocation reserved for bids applying for between INR 2 and INR 10 lakh and the remaining portion for those applying for more than INR 10 lakh, non-institutional buyers will also have options.
Swiggy has launched the “Swiggy Seal,” a new project designed to improve food preparation and packaging methods across its restaurant partners in 650 locations, in an effort to raise food hygiene and quality standards. According to a news agency report, the goal of this project is to assist restaurants in upholding strict hygienic standards, giving customers greater assurance over the food they order via Swiggy.
Pune has already seen the debut of the programme, and other cities will follow in November. This comes after Zomato and Swiggy increased their platform fees to InR 10 in advance of the Diwali festival.
How does Swiggy’s Seal Work?
On restaurant pages within the Swiggy app, the Swiggy Seal is a badge that highlights establishments that adhere to strict criteria for food quality and hygiene. Restaurants must exhibit a dedication to upholding stringent food safety regulations, appropriate cooking methods, and superior packaging in order to be eligible for the Seal.
Swiggy evaluates and selects eateries that qualify for the Seal based on data gathered from its 7 million verified customers over the last six months. The Seal will be displayed by restaurants that continuously meet these requirements, letting patrons know that the establishment is reputable for food safety and cleanliness. But Swiggy has also made it clear that a restaurant’s Seal could be taken away if they don’t uphold these requirements.
Assistance for Eateries
In order to assist its restaurant partners in meeting these requirements, Swiggy is also providing them with committed support. This includes having access to expert hygiene audits via collaborations with organisations like Equinox and Eurofins that have been approved by the Food Safety and Standards Authority of India (FSSAI).
Because these audits are provided at a reduced cost, restaurants may more easily make sure that food safety laws are being followed. Furthermore, Swiggy will give eateries thorough reports based on consumer input that include practical suggestions for enhancements. Additionally, the company offers exclusive services like cleaning and pest control and hosts webinars to teach restaurant owners about optimal hygiene procedures.
Seal Bringing in More Transparency into the System
Customers may experience a new level of transparency and assurance with the Swiggy Seal. Users can view which restaurants have received the Seal, a proof that they adhere to strict quality and sanitary standards, when placing food orders via the Swiggy app.
The programme aims to assist consumers in making knowledgeable choices about where to place their orders, especially in a market where concerns about food safety are on the rise. Through this initiative, Swiggy hopes to improve overall standards among its network of partners while providing consumers with the assurance that the food they order is made with care and delivered in a sanitary, safe environment.
According to multiple media sources, the Indian food delivery giant Swiggy is lowering its target by 10–16% because of market volatility, with the business aiming internally for a corporate valuation of $12.5 billion–13.5 billion for its impending IPO.
Prior to this week’s launch by Hyundai India, Swiggy was aiming for a $15 billion valuation for its $1.4 billion November IPO, which will rank as the nation’s second-largest stock offering of the year. Due to recent market volatility and a decline in Indian stock markets, reports further highlighted Swiggy’s consideration of a lower valuation to ensure that bidders leave “a lot of value on the table.”
Hyundai India’s Flop Debut Triggered Restructuring of IPO Launch
Due to sustained foreign selling, India’s benchmark Nifty 50 index has fallen 7.15% from record high levels reached on September 27 and is on track to post four consecutive weeks of losses.
Hyundai India’s shares experienced a 7.2% decline on their market debut on 22 October due to a lacklustre response from retail investors, who were concerned about the company’s high valuation and the potential for an auto industry downturn. According to additional reports, Swiggy is anticipated to list on the Mumbai stock exchange on November 13 and begin accepting subscriptions for its first public offering the week prior, but the exact date may vary.
India’s IPO Market
India’s initial public offering (IPO) industry has been booming despite recent tremors; over 270 firms have raised $12.57 billion so far this year, surpassing the $7.4 billion raised in 2023. Swiggy intends to begin holding roadshows for its stock offering in numerous Indian cities on October 30.
In India’s online restaurant and cafe food delivery market, Swiggy and Zomato are competitors. Both companies have placed significant bets on the so-called rapid commerce boom, which promises to deliver groceries and other goods in ten minutes. Swiggy was valued at $10.7 billion in its most recent fundraising round, which was led by Invesco in 2022.
Enticing Factors of Swiggy’s IPO
Swiggy’s IPO might present investors with a potential bargain given the unpredictability and recent declines of Indian markets. Given the escalating competition with Zomato and the rapidly evolving quick commerce landscape, the company’s strategic pricing aims to capitalize on the current market conditions and present a lucrative opportunity amidst a cautious market attitude.
One of the year’s most anticipated public offerings is Swiggy’s eagerly expected IPO. Investors hold high expectations for Swiggy, especially considering its potential for profitability following the successful stock market launch of its rival Zomato.
Swiggy intends to invest INR 982.4 crore to support lease and licence payments as well as the expansion of its network of dark stores for the rapid commerce segment, according to its Updated Draft Red Herring Prospectus (UDRHP). With a fresh issue valued at INR 3,750 crore and an offer for sale (OFS) exceeding INR 6,500 crore, the IPO is anticipated to generate approximately INR 10,000 crore.
Nitin Konde
