Swiggy Aims for Solid Growth
Food delivery and quick-commerce leader Swiggy has outlined ambitious growth plans following Swiggy IPO and its strong stock market debut. The company, which successfully listed at ₹412 per share – a 5.64% increase from its issue price—expects significant expansion in its Instamart business and overall geographical footprint over the next three to five years. Speaking after the listing ceremony, Swiggy CEO Sriharsha Majety expressed confidence, stating, “We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint and store network for Instamart.”
couldn’t have delivered without your support ❤️ https://t.co/PBoKiWiMND
— Swiggy Food (@Swiggy) November 13, 2024
Swiggy’s Impressive IPO Debut and Subscription Details
Swiggy’s Initial Public Offering (IPO) attracted robust interest, culminating in a full subscription on the final day of the share sale. The IPO was oversubscribed 3.59 times, with shares initially priced between ₹371 and ₹390 each. The ₹11,327 crore IPO comprised a fresh issue worth ₹4,499 crore and an Offer-For-Sale (OFS) of ₹6,828 crore. Swiggy’s shares eventually surged by 15.12% to ₹449 on the BSE, underscoring investor optimism.
Expanding Instamart and Investment in Quick-Commerce
Over the past year, Swiggy has doubled its categories within quick commerce, demonstrating its commitment to diversifying its product offerings. With a focus on Instamart’s growth, the company plans to open larger dark stores of up to 8,000-10,000 square feet. These bigger facilities aim to accommodate more inventory and improve logistics, facilitating quicker delivery. Majety highlighted improvements in delivery times, noting, “Our delivery time has reduced from 17 minutes to 12 minutes,” particularly in major urban areas.
You and I… In this beautiful world ❤️ @Swiggy pic.twitter.com/sAFzd8z07E
— zomato (@zomato) November 13, 2024
Swiggy’s IPO proceeds will be directed towards multiple areas of strategic investment, as outlined in its draft papers. Key allocations include technology and cloud infrastructure upgrades, brand marketing, and business promotion. A portion of the funds will also be dedicated to debt repayment, inorganic growth opportunities, and general corporate purposes. Majety emphasized that Swiggy would continue to invest in various categories to maintain its competitive edge in the quick-commerce sector.
Addressing ongoing scrutiny by the Competition Commission of India (CCI), Majety clarified Swiggy’s compliance with regulations. Recently, the CCI initiated a probe into potential anti-competitive practices by food delivery platforms, including Zomato and Swiggy, following reports of preferential treatment for specific restaurant partners. Majety assured stakeholders that “we are following laws and practices with complete compliance.”
Swiggy’s Path Forward
With solid backing from its successful IPO, Swiggy is poised for significant expansion in both its delivery services and Instamart network. As it scales operations and streamlines delivery, Swiggy aims to strengthen its position within India’s competitive quick-commerce landscape, balancing compliance with the CCI and innovation in customer convenience.
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Great to be associated with Swiggy. Always on-time delivery