Swiggy IPO: A Risky Bet?

Swiggy Introduction

Swiggy is an Indian online food ordering and delivery company. Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy is headquartered in Bangalore and operates in over 580 cities across India. The platform allows users to order food from a wide range of restaurants and get it delivered to their doorstep.

Also read NeoPolitan Pizza and Foods IPO: A Slice of Aggressive Disappointment

Brief About Swiggy

History of Swiggy

Swiggy Company was incorporated as ‘Bundl Technologies Private Limited’ as a private limited company under the Companies Act, 1956, pursuant to the certificate of incorporation dated December 26, 2013, issued by the Registrar of Companies, Andhra Pradesh at Hyderabad. Subsequent to a change in our registered office from the state of Andhra Pradesh to the state of Karnataka pursuant to the Board resolution dated November 2, 2015, and the special resolution passed by our Shareholders on December 11, 2015, a fresh certificate of registration dated September 19, 2016, was issued by the Registrar of Companies, Karnataka at Bengaluru. Our Company changed its name to “Swiggy Private Limited” pursuant to the Board resolution dated January 25, 2024, and the special resolution dated February 19, 2024, further to which a fresh certificate of incorporation dated April 1, 2024 was issued by the RoC, CPC. Our Company was subsequently converted into a public limited company pursuant to the Board resolution dated February 14, 2024 and special resolution passed by our Shareholders on February 19, 2024 and the name of our Company was changed to ‘Swiggy Limited’. A fresh certificate of incorporation dated April 10, 2024 was accordingly issued by the RoC, CPC.

Value Chain of Swiggy

Summary of the business of Swiggy

Swiggy is a consumer-first technology company offering users an easy-to-use convenience platform – to browse, select, order and pay for food (Food Delivery), grocery and household items (Instamart), and have their orders delivered to their doorstep through on-demand delivery network.

Verticals of Swiggy

• Food Delivery
• Out-of-home Consumption
• Quick Commerce
• Supply Chain and Distribution

Revenue breakup of Swiggy

Product wise break-up

(in ₹ millions)

Subsidiary companies of Swiggy

Industry Outlook

Online Food Delivery

The online Food Delivery market in India grew from ₹112 billion (US$1.4 billion) in 2018 to ₹640 billion (US$8 billion) in 2023 and is expected to become a ₹1400-1700 billion (US$17-21 billion) market by 2028P, growing at a CAGR of 17-22%. Of the total market in 2023, the share of top 60 cities (metro and Tier 1) is 75-80% which shows the large untapped potential beyond these cities which will drive growth as penetration of online Food Delivery increases. Growing availability of organised restaurant supply and increased online penetration is expected to drive growth in online Food Delivery market beyond the top 60 cities. Within the top 60 cities, the urban consumer base is still underpenetrated and a rise in the number of users along is expected to grow the market. The growing need for convenience and variety fuels demand, while the rapid expansion of the restaurant industry, driven by increasing number of organised restaurants, strengthens supply. Consequently, the growth of organised and affordable offerings is expected to unlock demand previously constrained by the lack of relevant and abundant supply.

The growing trend of consumers using online Food Delivery platforms is evident with penetration of online Food Delivery services rising to 11% in 2023 from 3% in 2018. However, despite this growth, in comparison to other well- established online food service markets, there remains considerable untapped potential in India for further growth which is evident from the significantly lower frequency of ordering food online as people are accustomed to home- cooked meals. With growing availability of organised supply, affordability, increasing occasions of eating out, increasingly busy lifestyles of consumers and rapid urbanisation, Indians are expected to order food online more frequently.

Growing prominence of these platforms among consumers has led to the establishment of a resilient consumer base, with 80-85 million Annual Transacting Users (“ATUs”) in 2023. Notably, a substantial 25-29% of ATUs are Monthly Transacting Users (“MTUs”) in 2023 which is expected to increase to 27-32% by 2028, underscoring the frequent and habitual ordering behaviour. The inelastic and loyal nature of this demand is evident in the steadily expanding consumer base, despite diminishing marketing spends. Of these 20-25 million MTUs, 70-80% reside in the top 60 cities, representing a significant share of growing urban consumers that value convenience.

With the rising prominence of these platforms and urban migration, new user acquisition is steadily happening in metro cities and is expected to continue. In the approximately ₹2.3-2.6 trillion (US$29-33 billion) food services market beyond the top 60 cities as of 2023, hyperlocal commerce platforms are seeing rapid growth as the market is underpenetrated (5-6% online penetration) and presents a large untapped opportunity for growth in the long run. The absence of a robust restaurant network and diverse culinary options in smaller towns and rural areas dampens consumer interest in online food ordering. However, these challenges represent an untapped market potential for online Food Delivery platforms in the long term. By addressing supply gaps and enhancing consumer awareness, online Food Delivery platforms can unlock significant growth opportunities beyond the top 60 cities, thereby expanding their market reach and driving revenue growth. Based on the above confluence of factors, the MTUs in Online Food Delivery are expected to increase to 35-45 million by 2028.

The Average Order Value (“AOV”) (average monetary value of a single order pre-discount and including taxes, customer delivery charges but excluding tips) for the industry has also climbed from approximately ₹290-320 (US$3.6- 4.0) in 2018 to approximately ₹425 (US$5.3) in 2023. Apart from inflation, this surge is attributed to supply-side innovations like higher presence of premium restaurants, more premium dishes and on the demand side this is caused by increasing disposable incomes, increased appetite for experimentation and a change in the consumer base with a larger proportion of families opting for online food ordering. Globally as well, PPP-adjusted AOVs are significantly higher at ₹600-650 (US$7.5-8.1) and ₹750-800 (US$9.4-10.0) in the USA and UK, respectively, signalling clear headroom to grow in the future.

Zinka Logistics || Blackbuck IPO: Is it Worth the Risk?

With the largest consumer base globally, the Indian food services market is primed to see fast-paced growth with increasing number of organised restaurants widening the demand that was constrained by supply-side limitations. In essence, these platforms act as catalysts, driving the share of organised food services market (in the overall food services market) which has grown from 35-40% in 2018 to 40-45% in 2023 and is expected to continue growing to reach 55-60% by 2028. Moreover, the emergence of concepts like virtual kitchens, alternatively known as cloud kitchens (kitchens designed for online Food Delivery specifically and as such, lacking any consumer storefronts) which have grown from approximately ₹15 billion (US$0.2 billion) in 2018 to approximately ₹80 billion (US$1 billion) in 2023 is a testament to the ecosystem cultivated by online Food Delivery platforms.

Out-of-Home Consumption

Beyond just delivery, offline dining out experiences are also being disrupted to capture the evolving demand. The organised Out-of-home Consumption market grew from ₹1.3 trillion (US$16 billion) in 2018 to ₹1.8 trillion (US$23 billion) in 2023.

As the currently sparse and fragmented organised supply landscape of India undergoes rapid development to capture the large growth headroom, the dining out market is ripe for digital disruption. India is at an early stage of category development, presents significant opportunities for innovation. Online Food Delivery platforms can provide dining- out oriented solutions with limited variable costs and strong incremental revenue generation for restaurants. Further, the large existing consumer base of online Food Delivery is naturally inclined to use these solutions on the same platforms for their dining out needs, which in turn leads to more restaurants getting onboarded, thereby creating a network effect. These solutions provide diverse options for various use-cases, extending beyond food to encompass enhanced and dynamic experiences that unlock additional revenue streams.

These solutions not only offer convenience, affordability and timely reservations for the consumers, but also lead to increased consumer stickiness and better demand planning for the restaurants. With the share of branded (registered organised restaurants with valid licenses to run food businesses in India) restaurants (excluding cloud kitchens) of the total number of restaurants increasing from 15-20% in 2018 to 25-30% in 2023, the relevance of dining-out oriented solutions for restaurant discovery has increased significantly. Most of these branded restaurants are present on online Food Delivery platforms as online discovery has become increasingly important to attract a wider consumer base with digitally-native consumers turning to these platforms for dining out decisions. These platforms also provide restaurants with the ability to enhance their brand value through consumer reviews and engagement, based on the quality of the service reducing the need for marketing spends. Moreover, the high AOVs along with relatively higher (gross) margin capture potential increase the attractiveness of the segment for online Food Delivery platforms. Given the AOVs here are at least four to five times that of the online Food Delivery segment and the gross margins are significantly higher given the only direct costs involved are the payment gateway costs and smaller overheads (mostly tech maintenance costs), this segment enjoys high profitability and operating leverage.

Dining out experiences today are enhanced by social events that take place at the restaurants. The growing demand for these events has led to multiple opportunities for the platforms. From musical jams to social mixers, a wide range of curated events and experiences extend the touchpoints with the consumers, while also building renewed interest and attention for the restaurants. This has enhanced consumers’ restaurant discovery needs which were traditionally limited to finding good quality food and now involve finding high quality events taking place at restaurants.

Due to the confluence of the above factors, online dining out market size is expected to grow at a CAGR of 46-53% to reach ₹320-400 billion (US$4-5 billion) by 2028 witnessing high adoption from existing online Food Delivery users as well as expansion of restaurant partner network with existing access from Food Delivery segment. As a result, the penetration of the online dining out market in the organised Out-of-home Consumption market is expected to increase from ~3% in 2023 to ~10% in 2028, which still has large headroom for penetration in addition to the share of organised segment increasing.

Currently, a very small percentage of dining out visits are reserved (in advance) as Indian consumers are habituated to walking in and finding tables at restaurants. However, with rapidly growing premiumisation of the dining out experience, demand surge on specific meal slots, limited seating at popular restaurants in urban areas and growing popularity of Out-of-home Consumption, reservations are gaining prominence as has been the case in developed markets for decades.

Online is already becoming a preferred mode to make dining reservations as it is convenient, effective and quick. The need for making reservations is expected to grow to keep up with rapidly growing consumer demand, which points to the growth headroom for online-based table reservation facilities.

Indian Retail Market and Emergence of Quick Commerce

The Indian Retail Market is evolving with growing need for convenience and is expected to grow from ₹76-78 trillion (US$950-980 billion) in 2023 to ₹116-124 trillion (US$1,450-1,550 billion) in 2028. The market is dominated by grocery products which hold approximately 61% share as of 2023. The market is being digitally disrupted by convenience-first Quick Commerce models that are gaining prominence among time-constrained urban consumers, while also addressing supply chain inefficiencies. Hence, the Quick Commerce segment is expected to see the fastest growth among all retail channels in India with a CAGR of 60-80% to reach ₹2.3-4.2 trillion (US$29- 53 billion) by 2028 from ₹224 billion (US$2.8 billion) in 2023. The near-term growth rate is expected to be even higher at 80-100% annually for the next two years driven by higher user adoption, geographic expansion, expanding AOVs, basket size and category expansion.

India Retail Market

Onyx Biotec IPO: A Cautionary Tale Aggressive

Retail market comprises several categories, including grocery, fashion, electronics, pharmaceuticals and over the counter medication, beauty and personal care and general merchandise. India boasts a large retail market of ₹76-78 trillion (US$950-980 billion), with home-cooked or groceries (including fresh foods like fruits, vegetables, dairy and meat, staples and fast-moving consumer goods (“FMCG”) (packaged foods and non-foods)) forming the bulk (approximately 61% in 2023) of it. The other retail categories in the market include fashion, electronics, beauty and personal care and general merchandise, home/ kitchen goods and pharmaceuticals (including over-the-counter medication. As of 2023, the market contribution of top 60 cities (i.e., metro and Tier 1) is 26% and that of the rest of the India4 is 74%.

Unorganised Retail

The retail market in India has been dominated by unorganised retail (general trade) that holds over 80% of the market share as of CY2023 and does not sufficiently meet the increasingly diversified needs of urban consumers. The unorganised retail supply chain is also complicated due to the presence of several intermediaries (distributors, stockists, agents, brokers, millers, wholesalers, among others, across different categories). The highly fragmented value chain and limited connectivity between intermediaries in the unorganised retail market leads to higher costs, slower procurement and reduced price transparency for the brands, as well as higher prices and limited product availability for consumers. Organised retail solves for these challenges by providing better product assortment and access to the consumers. The role of technology through digitisation of payments, accounting and purchasing etc. would be important in making unorganised retail more relevant to meet the changing demand.

Organised Retail

While increasing rapidly to reach 18-20% in 2023, the penetration of organised retail in India still has a large headroom to grow with the fast-growing aspirational demand of consumers. The growth in share of organised retail is led by top 60 cities where the share of organised retail has reached over 40% of the overall retail market in 2023. Due to limited access and availability of organised retail infrastructure in India and higher urban densities, a supermarket ends up serving a much larger population which is underscored by the population per supermarket in India being 6-7 times and 2 times that of the USA and China, respectively, as of 2023.

Online Retail

Online penetration in the retail market is growing on the back of rising consumer demand and need for convenience through doorstep deliveries. Among the fastest growing online categories are food at-home (grocery), personal care products, fashion, electronics devices and appliances and pharmaceuticals, growing at CAGRs of approximately 46%, 40%, 34%, 29% and 24% respectively between 2018 and 2023. Apart from supply-side factors like the large untapped and unorganised market, improved brand reach and visibility, increasing store density and revenue enhancement, there are several consumer-led factors like consistent demand and need for improved access and availability which makes these categories particularly appropriate for online growth.

However, as of 2023, these categories are significantly underpenetrated as evident in the online penetration for grocery (home-cooked) and personal care in the USA being approximately 10% and approximately 20-25% respectively and the same in China being approximately 6% and 35-40% respectively, reflecting the large headroom for growth in India’s online retail markets.

Emergence and Growth of Quick Commerce

While the shift to online was initially led by scheduled delivery platforms for grocery (where delivery happened within a few days of the order being placed), traditional marketplace e-commerce platforms led the online penetration of the other retail categories, followed by category-specific vertical players. While consumers increasingly shifted online wanting a wider range of options and improved access, the delivery timelines for all these models spanned from a day to multiple days depending on several factors. Traditionally, the key convenience factors in retail were centred around what is offered (e.g. time, selection, value) in which Quick Commerce has been able to demonstrate a better proposition to consumers. With increasing hyperlocalisation and shift to online, new dimensions of convenience such as discovery, integration and personalisation have also grown in importance and Quick Commerce players are best placed to deliver on these.

While e-commerce solutions provided convenience over traditional retail alternatives, these solutions thrived on the base of value-seeking consumers. However, urban consumers looking for greater convenience due to their increasing purchasing power and time-constrained lifestyles prioritised reduced delivery times, getting fresher products and making more ‘last-minute’ purchases, leading to the emergence of Quick Commerce platforms. Quick Commerce was the next step for convenience as an offering as it allowed consumers to expect product deliveries within 30-60 minutes of placing the order. High density of demand allows for Quick Commerce players in India to operate faster than leading players in markets like USA and UK. Average delivery times for Quick Commerce players in India have therefore already reached 10-20 minutes as of 2023, whereas the same for many leading global players is approximately 30 minutes.

As a result, Quick Commerce has largely been a successful mode in terms of profitability in India due to its high- density micro-markets and low penetration of organised brick and mortar (B&M) grocery. The share of the Quick Commerce market in online retail has increased rapidly from approximately 0.14% in 2018 to 4.8% in 2023 and with fast-paced growth of 60-80% expected annually till 2028, it is expected to reach 17-30% penetration in online retail resulting in a Quick Commerce market size of ₹2320-4240 billion (US$ 29-53 billion).

Mangal Compusolution IPO: A Risky Bet?

While Quick Commerce initially started as a means to solve ‘food-for-now’ or top-up needs of consumers, its strong value-proposition has now expanded to multiple use-cases for the consumer. Previously, Quick Commerce was largely restricted to limited, high frequency SKUs which limited consumer choices. A leading pan-India staples and FMCG brand with domestic sales of approximately ₹582 billion in Fiscal 2023 announced that staple packs and larger SKUs are showing robust growth in sales on quick commerce platforms, solidifying the importance of Quick Commerce as a pertinent retail channel for stock up purchases. New use-cases which include not only high-frequency unplanned and indulgence purchases, but also regular planned stock-up purchases, have emerged. With wide assortments across grocery and household needs, Quick Commerce platforms have now evolved into the go-to stores to cater to increasingly diversified demand. The rapid adoption of Quick Commerce by consumers has evidenced a strong appetite to pay for on-demand last minute purchases. As Quick Commerce players expand their capabilities and are able to service new categories, more and more of e-commerce categories, including high-value categories, may shift to Quick Commerce due to the enhanced consumer value proposition.

Owing to growing demand and use-cases, Quick Commerce is increasingly becoming an important retail channel with its share in brands’ total online sale increasing rapidly. Digitally-native consumers opting for convenience are more inclined towards 10-20 minute Quick Commerce deliveries than next or few days e-commerce deliveries. This shift in demand has led to growth in the share and importance of Quick Commerce as a primary online retail channel for brands, rapidly substituting traditional e-commerce platforms. This shift has been highlighted by many leading players.

For instance:

• A leading pan-India FMCG brand with domestic sales of approximately ₹170 billion in CY 2022 recently announced that approximately 50% of its e-commerce business comes from Quick Commerce platforms.
• A leading pan-India packaged foods brand with approximately ₹10 billion in revenues in Fiscal 2022 announced that approximately 65% of its e-commerce now comes from Quick Commerce platforms.
• A leading global beverages brand with net revenues of over ₹3 trillion in CY 2022 announced that “they are seeing much higher numbers of conversion rates in quick commerce, compared to larger platforms. The strike rate of consumers ordering is definitely higher on quick commerce platforms”.
• This highlights the emergence and growth of incremental Quick Commerce-specific demand use-cases that cannot be fulfilled through other channels. Quick Commerce is also emerging as the largest channel for specific products and SKUs, for example those catering to indulgent last-minute needs of consumers. While e-commerce platforms have been present in the Indian market for over a decade, Quick Commerce has reached this scale in less than five years and is still growing faster than traditional e-commerce, suggesting large untapped potential.
• Quick Commerce has seen among the fastest adoptions in shaping consumer behaviour with strong traction across the ecosystem. Growing prominence of Quick Commerce is seen by its penetration in grocery growing at a CAGR of over 200% from 2018 to 2023 while that of online grocery increased by approximately 45% over the same period. Grocery was the first category disrupted by the emergence of Quick Commerce and has already reached approximately 31% penetration in online grocery retail compared to approximately 4.8% for overall Quick Commerce. A similar trend is expected to be seen in other categories as consumers increasingly choose Quick Commerce over other traditional online retail channels.

While Quick Commerce started with the metro cities, the strong value proposition offered across the ecosystem makes it increasingly relevant beyond these cities as well. The strong momentum seen in Tier 1 cities highlights the broader untapped opportunity to be captured by Quick Commerce. The demand for Quick Commerce is thus expected to be present in all cities with high density of aspirational consumers.
High density of aspirational demand in cities and the evolving lifestyles of consumers and stable supply in large and growing urban markets in India have contributed to the growth of Quick Commerce in India. These pockets are suitable for the operation of a model that offers deliveries in 10-20 minutes. Hence, high density businesses in India tend to do well and India is one of the earliest countries where Quick Commerce is growing while showing a path to profitability.

Quick Commerce is a tough market for traditional e-commerce players as they require certain hyperlocal business processes and tech capabilities that take time to build. Moreover, the competitive landscape is defined by the emphasis on streamlined and curated user experiences. Quick-commerce builds habit and salience through providing a superior experience for high-frequency categories (most importantly grocery), while traditional e-commerce has built-up on the basis of larger selection in lower frequency categories. Additionally, factors such as the intricacies of delivery fleet management, potential for channel conflict between scheduled and on-demand models, and the optimisation of fulfilment networks further complicate the entry into this market segment.

The Quick Commerce landscape is expected to continue evolving in the future with platforms further reducing delivery times, leading to increased consumer convenience. This would attract a wider consumer base with increasingly busy and digitally evolving lifestyles of consumers, which is expected to broaden to other types of consumers including housewives, senior citizens among others, with increased online penetration. On the supply-side, Quick Commerce platforms are expanding their offerings to include new categories, thereby increasing the importance of Quick Commerce as a distribution channel. Tech-led distribution through these platforms would also drive better planning and forecasting for brands.
These factors have driven growth in Quick Commerce across categories which has not only resulted in steady growth in the consumer base for these platforms, but also in the AOV with the AOV of an order at maximum retail price (MRP) increasing from approximately ₹450 (US$5.6) to approximately ₹529 (US$6.6) between the fourth quarter (“Q4”) of CY2022 and CY2023. Growing order values reflects the gradual shift in consumer behaviour towards using Quick Commerce platforms as a primary buying mode for various retail categories. Currently the AOV of e-commerce platforms is 2.5-3 times that of quick Commerce platforms and with the revenue per annual user for e-commerce platforms increasing by 1.5 times in the next five years, it signifies a significant head room for growth of AOVs and order frequency for Quick Commerce platforms.

As of 2023, the monthly grocery ordering frequency (per MTU) of Quick Commerce platforms was three to four times that of slotted delivery platforms, indicating the growing prominence of Quick Commerce platforms among consumers. Managing inventory and fulfilling specific SKU demand is a challenge commonly faced by general and modern retail stores that Quick Commerce solves for through tech-led distribution.

Consumer spends on Quick Commerce platforms are characterised by evolving dynamics such as addition of new categories, increasing basket sizes and SKU proliferation among others. While they were initially focused on groceries and essentials, these platforms have diversified their offerings to include electronics and personal care items among others, reflecting changing consumer preferences. The growth in consumer spends is also driven by larger SKU sizes, as consumers consolidate purchases to minimise shopping trips and take advantage of bulk ordering incentives. This diversification in categories is likely to benefit Quick Commerce players as non-grocery items are high margin categories which lead to better unit economics.

Factors that would be critical to succeeding in the Quick Commerce space include cross-utilisation of resources across retail categories. For example, a single digital platform and delivery network being used to provide grocery, small electronics and beauty and personal care can improve utilisation and AOV while keeping costs fixed. Optimisation of assortment by merchants to best-cater to consumer preferences can lead to faster growth, improved profitability and higher return on capital employed compared to offline retail channels.

Evolution of Hyperlocal Commerce Platforms

Hyperlocal commerce platforms are rapidly evolving to serve emerging needs of various stakeholders and enhancing their profitability. Innovative integration of multiple adjacent use-case into an integrated platform may lead to improved scalability and improved unit economics by leveraging existing capabilities.

The hyperlocal food market in India is highly competitive which is highlighted by the inability of several players to sustain themselves successfully in the market. The market is composed of online Food Delivery players, house of brands (which is a brand architecture strategy of owning multiple brands under a single corporate umbrella, predominantly with an intent to target multiple consumer use-cases or price-points, or for any other strategic objectives), standalone branded food services players (including quick service restaurants), and online restaurant booking platforms (such as EazyDiner, etc.). Food services players also compete with multiple other participants in the industry including restaurants which own and operate their own delivery fleets, restaurants with traditional offline ordering channels, such as take-out offerings and phone-based ordering, restaurants with their own self-booking portals for making online reservations and, restaurants using local publications and other media, both online and offline, where advertisements can be placed to attract consumers.

Neelam Linens and Garments IPO: Is This the Next Big Textile Scam?

Threats and Challenges to Hyperlocal Players

While the Hyperlocal Industry in India is expected to see significant growth as outlined in the previous sections, players may face several threats and challenges that could impede their growth trajectory and stability as outlined below:

• Economic and Inflationary Pressures- Economic downturns and rising inflation could limit disposable income, impacting some discretionary spends on Hyperlocal Platforms.
• Regulatory and Policy Risks- Stricter safety regulations and changes in gig economy laws could increase operational costs for Hyperlocal Platforms which may get passed on to end consumers, potentially reducing their rate of adoption
• Competition: Intensified competition from existing players, new entrants and companies from other sectors leveraging their existing capabilities for certain hyperlocal services like Quick Commerce, can raise competitive intensity which can have implications for change in business economics, scope and scale of categories and geographies catered to by the model, and market positions of players.
• Rise of Other Models: Select large businesses can develop their own apps and delivery services to bypass third- party platforms however has seen limited adoption currently. Successful execution of this trend could reduce the volume of orders on these platforms as customers might prefer ordering directly from these businesses. Emergence of models like Open Network for Digital Commerce (ONDC) are an example of this trend by allowing businesses to connect directly with consumers, bypassing third-party intermediaries.
• Logistics Complexity: Efficiently meeting demand across diverse locations can be challenging due to external factors such as traffic, weather conditions which may impact customer experience. Additionally, as these platforms grow, these platforms need to continuously recruit, train, and retain delivery partners and customer service representatives
• Ability to Add New Categories Profitably: Certain segments like Quick Commerce are rapidly evolving with multiple new categories being added. The evolution of these new categories is yet to be proven in terms of operational complexity and profitability at scale

Management of Swiggy

Promoters & Board of Directors

• Company does not have an identifiable promoter in terms of the SEBI ICDR Regulations and the Companies Act.

Board of directors

Share Holding pattern

Ipo details of Swiggy

Object of the issue

(in ₹ million)

Financial of Swiggy

Key Performance Indicators

(in ₹ millions, unless otherwise stated)

• Swiggy Platform

• Food Delivery

• Out-of-home Consumption

• Quick Commerce

• Supply Chain and Distribution

• Platform Innovations

Assets & Liabilities

(in ₹ millions, unless otherwise stated)

Cash Flow

(in ₹ millions)

Capital structure

(in ₹ millions, unless otherwise stated)

SWOT ANALYSIS

• Strengths
  • Strong Brand Recognition: Swiggy is one of the most recognized food delivery platforms in India, known for its user-friendly interface and quick delivery service.
  • Wide Restaurant Network: Swiggy partners with over 3 lakh restaurants across more than 500 cities in India, providing a vast selection of food options to customers.
  • Diverse Services: Besides food delivery, Swiggy offers services like Swiggy Instamart for quick grocery deliveries and Swiggy Genie for same-day package deliveries.
  • Technological Innovation: Swiggy uses advanced technology, including AI and machine learning, to optimize delivery routes and improve customer experience.
• Weaknesses
  • Net Losses: Swiggy has reported net losses in recent years, which could impact its financial stability.
  • Technical Glitches: Despite its technological advancements, Swiggy occasionally faces technical issues that can affect customer satisfaction.
  • High Operational Costs: The costs associated with maintaining a large delivery network and ensuring timely deliveries can be substantial.
  • Limited International Presence: Swiggy’s operations are primarily focused on India, limiting its global reach.
• Opportunities
  • Expansion into New Markets: Swiggy can explore opportunities to expand its services to other countries, tapping into new customer bases.
  • Growth in Online Food Delivery: The online food delivery market is expected to grow, providing Swiggy with opportunities to increase its market share.
  • Partnerships and Collaborations: Forming strategic partnerships with other companies can help Swiggy enhance its service offerings and reach.
  • Technological Advancements: Continued investment in technology can improve operational efficiency and customer experience.
• Threats
  • Intensifying Competition: The food delivery market is highly competitive, with several players vying for market share.
  • Economic Downturns: Economic instability can affect consumer spending on food delivery services, impacting Swiggy’s revenue.
  • Regulatory Changes: Changes in regulations related to food safety, delivery services, and labor laws can impact Swiggy’s operations.
  • Customer Dissatisfaction: Any decline in service quality or customer satisfaction can lead to a loss of customers.

Peer Comparison

Risks

• Attracting and retaining delivery partners is critical to our business, and failure to do so in a cost-effective way may have an adverse effect on our business, financial condition and results of operations.
• If we fail to retain existing or acquire additional restaurant partners, merchant partners and brand partners in a cost-effective manner, our business, financial condition and results of operations could be adversely affected. Further, if partners on our platform try to pass on increased operating costs to users, users may decrease the frequency with which they interact on our platform and order volumes on our platform may decline.

• Managing our Dark Stores is critical to our Quick Commerce business and failure to do so in a cost-effective way may have an adverse effect on our business, financial condition and results of operations.

• We face intense competition across the markets we serve and if we are unable to compete effectively, our business, financial condition and results of operations would be adversely affected.

Litigation involved in Swiggy

Gray Market Premium

Latest posts

• Zinka Logistics || Blackbuck IPO: Is it Worth the Risk?
• Onyx Biotec IPO: A Cautionary Tale Aggressive
• Mangal Compusolution IPO: A Risky Bet?
• NTPC Green Energy IPO: Is the Hype Justified?
• Neelam Linens and Garments IPO: Is This the Next Big Textile Scam?

Categories

• Blog
• Daily News
• Fundamentals
• Investment Plans
• IPO
• Mutual Funds
• NFO