Swiggy IPO: Key Details Revealed! 10 Must-Know Facts About Financials, Risks, and SEBI Updates

Swiggy, a top food and grocery delivery company, submitted updated draft papers to the Securities and Exchange Board of India (SEBI) on September 26, 2024, for its much-awaited IPO. The IPO will include new shares worth ₹3,750 crore and the sale of 18.52 crore shares from existing shareholders through an offer-for-sale (OFS). Swiggy is also thinking about raising funds before the IPO, which could reduce the size of the new share issue.

Swiggy’s confidential offer was accepted by SEBI earlier, and the company has now updated its draft. After gathering public feedback, Swiggy will file the final prospectus and begin its IPO.

Key Details About Swiggy’s IPO:

Selling Shareholders

Ten corporate investors will sell their shares in the IPO, including MIH India Food Holdings, Accel India IV (Mauritius), Alpha Wave Ventures, Tencent Cloud Europe B.V., and others. Individual shareholders like Swiggy’s co-founders are also part of the sale.

Swiggy’s Competitors

Swiggy’s main competitor is Zomato. In FY24, Swiggy earned ₹11,247.39 crore in revenue, slightly less than Zomato’s ₹12,114 crore. Swiggy had a negative earnings per share (EPS) of ₹10.70, while Zomato had an EPS of ₹0.41.

Swiggy’s Business

Swiggy offers a unified app for ordering food, groceries, and household goods. It also runs hyperlocal services like Swiggy Genie for deliveries and SteppinOut for events.

Business Segments

Swiggy’s business is divided into five parts:

• Food Delivery
• Out-of-home Consumption (dining out and events)
• Quick Commerce (Instamart)
• Supply Chain and Distribution
• Platform Innovations (Swiggy Genie and Swiggy Minis)

Swiggy’s Strengths

Swiggy leads in high-frequency, hyperlocal commerce thanks to its innovative culture. The company continues to grow its user base and is popular among restaurant partners. Its unified app ensures a seamless experience for users.

Swiggy Industry

In India, the food services market is still developing. Unlike in the US and China, where dining out is common, India’s food services market was only 0.1 times the size of the grocery market in 2023. But with cloud kitchens and organized food services growing, there is room for growth.

Swiggy’s Financials

Swiggy has faced losses every year. However, its losses decreased to ₹2,350.24 crore in FY24, down from ₹4,179.30 crore the previous year. Revenue grew to ₹11,247.39 crore in FY24, up from ₹8,264.59 crore in FY23.

Key Risks

Some risks include:

• Difficulty attracting new customers and keeping existing ones.
• Challenges in maintaining a cost-effective network of delivery partners.

Group Companies

Swiggy’s group includes Loyal Hospitality Private Ltd, MIH India Food Holdings, and Vijayawada Hospitalities Private Ltd.

Anchor Investors

Half of the shares allocated to anchor investors will be locked for 90 days after allotment, and the other half for 30 days.