Swiggy, one of India’s leading food delivery platforms, is set to make a significant debut on the stock market with its highly anticipated Initial Public Offering (IPO) in 2024. The company, which has transformed the food and grocery delivery ecosystem in India, is gearing up for an IPO that could be valued between $15-17 billion. Here’s everything you need to know about Swiggy’s IPO.

Key Details of Swiggy’s IPO

Swiggy aims to raise ₹3,750 crore through the fresh issue of shares as part of its public listing, along with an Offer for Sale (OFS) of 18.52 crore shares by existing shareholders, making the total IPO size around ₹10,414 crore. Major shareholders such as Prosus, Accel India, and Elevation Capital will be selling portions of their stakes, while SoftBank notably is not parting with its shares.

How Swiggy Plans to Use IPO Proceeds

Swiggy intends to allocate the IPO funds across several key areas:

1. Technology Investments: Swiggy plans to use a portion of the proceeds to enhance its technological infrastructure, focusing on artificial intelligence (AI)-powered systems for optimized deliveries and customer experience.
2. Dark Store Expansion: The company is doubling down on its quick-commerce initiative, Instamart, by expanding its network of dark stores, which allows for hyperlocal and fast deliveries of groceries and essentials​.
3. Debt Repayment: Part of the funds will be directed toward repaying the company’s debt, strengthening its balance sheet and financial health​.

Financial Performance

Despite a 36% increase in revenue in FY24, reaching ₹11,247 crore, Swiggy reported widening losses. Its Q1 FY24 losses stood at ₹611 crore due to increased operational expenses. However, the company is optimistic about reducing these losses through higher order values and improved advertising revenue as it prepares for its public debut.

Why Swiggy’s IPO is Significant

The Swiggy IPO is being closely watched not just by investors but also by market competitors like Zomato. Swiggy is positioning itself as a leader in both the food delivery and quick-commerce segments, and this IPO will provide the capital needed to fortify its market position against growing competition.

Moreover, Swiggy’s move to enhance its technological capabilities and focus on quicker, more reliable deliveries demonstrates its ambition to maintain a cutting-edge advantage in the competitive Indian food-tech market.

Conclusion: Is Swiggy IPO a Good Investment?

Swiggy’s IPO presents an attractive opportunity for investors who are looking to tap into India’s booming food delivery and e-commerce market. The company’s strong revenue growth, ambitious expansion plans, and focus on technology give it a promising outlook. However, potential investors should keep an eye on Swiggy’s ability to manage costs and improve profitability.