Unlocking Opportunities: A Guide to the Upcoming Swiggy IPO Opportunity

Established in 2014, Swiggy Limited has become a prominent player in India's expanding on-demand delivery industry. With its intuitive app, Swiggy connects millions of users to a variety of services, extending beyond food delivery to include grocery and logistics solutions. Focused on convenience and innovation, Swiggy has established itself as a key player, particularly in urban areas across India.

Now, Swiggy is inviting investors to participate in its growth journey through an Initial Public Offering (IPO) scheduled for November 2024. This IPO consists of a book-built issue totaling ₹11,327.43 crores, featuring a fresh issue of ₹4,499 crores alongside an offer for sale worth ₹6,828.43 crores.

Let's dive into the Swiggy IPO and how HDFC Sky's ‘One-Click IPO' tool makes investing effortless, allowing you to easily participate in this exciting growth opportunity in the on-demand delivery market.

To participate in the Swiggy IPO, investors should ensure they open demat account to facilitate seamless transactions.

About Swiggy

Swiggy is a consumer-first technology company offering a unified platform for convenience services through a single app. Users can order food, groceries, and household items, reserve restaurants, book events, and use pick-up/drop-off services across Swiggy's offerings like Food Delivery, Instamart, Dineout, SteppinOut and Genie.

As a pioneer in hyperlocal commerce in India, Swiggy launched Food Delivery in 2014, followed by Quick Commerce in 2020, establishing itself as an industry leader. Swiggy's membership program, "Swiggy One," provides users with discounts, while in-app payment options like "Swiggy Money," Swiggy UPI, and an HDFC co-branded credit card simplify transactions.

Swiggy supports partners with business tools like analytics, fulfillment solutions, and last-mile delivery. Its multi-tenant technology stack enables quick integration of new services, boosting convenience and efficiency. Recognised as India's leading Consumer Technology & Services brand in Kantar's 2024 BrandZ report, Swiggy leverages its strong reputation to enhance user engagement, scale rapidly, and create earning opportunities for partners.

Swiggy IPO Details

Participating in the Swiggy IPO presents an exciting opportunity for equity trading, allowing investment in a leading brand within the growing delivery market.

Swiggy IPO Timeline (Tentative Schedule)

Swiggy IPO Reservation

• QIB Shares Offered: Not less than 75% of the Net Issue
• Retail Shares Offered: Not more than 10% of the Net Issue
• NII (HNI) Shares Offered: Not more than 15% of the Net Issue

Objectives of the IPO

The company plans to use the Net Proceeds for several key objectives, including:

• Investing in Scootsy to repay some or all of its borrowings.
• Expanding the Dark Store network for the Quick Commerce segment and covering lease/license payments.
• Enhancing technology and cloud infrastructure.
• Funding brand marketing and business promotion to increase platform visibility.
• Supporting inorganic growth through potential acquisitions and other general corporate purposes.

Investors can simplify their application for the Swiggy IPO by using a stocks app that supports IPO applications, ensuring a smooth and efficient process

Financial Performance

(amount in crores)

• Assets: Total assets declined from ₹14,405.74 crore in FY 2022 to ₹10,341.24 crore by June 2024, indicating potential restructuring or optimisation.
• Revenue: Revenue rose from ₹6,119.78 crore in FY 2022 to ₹11,634.35 crore in FY 2024, reflecting a 34% year-over-year increase, with ₹3,310.11 crore in June 2024.
• Profit After Tax (PAT): PAT remains negative but improved, with losses down from ₹-4,179.31 crore in FY 2023 to ₹-2,350.24 crore in FY 2024 and a smaller loss of ₹-611.01 crore by June 2024.
• Net Worth: Net worth fell from ₹12,266.91 crore in FY 2022 to ₹7,444.99 crore by June 2024, indicating equity strain from ongoing losses.
• Reserves and Surplus: Reserves have declined to ₹-7,750.85 crore in June 2024 from ₹-3,311.1 crore in FY 2022, reflecting accumulated losses offset against reserves.
• Total Borrowing: Borrowing increased from ₹211.19 crore in FY 2024 to ₹256.61 crore by June 2024, indicating minimal reliance on debt relative to total assets.

Strengths of the IPO

• Swiggy leads hyperlocal commerce in India, focusing on innovation for user convenience and engagement.
• In its tenth year, Swiggy reached 112.73 million users through a unified app and strong partner network.
• User engagement increased to an average of 4.50 transactions monthly in Fiscal 2024, driven by seamless experiences.
• Swiggy is the top brand in Consumer Technology & Services, boosting engagement through its unified app and offerings.
• The app and network create opportunities for restaurant and merchant partners, ensuring cost-effective user engagement.
• Swiggy's platform uses network effects to attract users and partners, enhancing value and scaling services quickly.
• Swiggy's leadership team boasts 52 years of combined experience promoting innovation, transparency, and accountability.

Risks

• Swiggy has faced ongoing net losses and negative cash flows despite revenue growth.
• User acquisition and retention are critical; competitor offers could reduce revenue.
• Maintaining partnerships with restaurants and merchants is essential; price increases could lower order volumes.
• Effective management of Dark Stores is crucial; mismanagement may disrupt services.
• Regulatory changes in e-commerce could threaten Swiggy's business model.

Future Growth Strategies

• Swiggy plans to expand offerings and partner networks to boost user convenience and engagement.
• The company will grow its Dark Store network to enhance product selection and delivery efficiency.
• Swiggy aims to improve contribution margins by scaling operations and expanding high-margin offerings.
• The company seeks to strengthen its technology and optimise last-mile delivery for better scalability.
• Swiggy will increase brand recall and engagement through targeted marketing and data-driven advertising strategies.

Investors can easily manage their Swiggy IPO investments using a demat app, which simplifies buying and holding shares for both seasoned and new investors.

How to Apply for Swiggy's IPO Using HDFC Sky's One-Click Feature

HDFC Sky's One-Click feature streamlines the IPO application process, making it quick and efficient. To apply for Swiggy's IPO, follow these steps:

1. Login to HDFC Sky: Access your account using your login credentials.

2. Navigate to the IPO Section: Click on "Indian Stocks" in your profile and select "IPO."

3. Select Swiggy IPO: Locate Swiggy in the IPO list and click on "Apply Now."

4. Input Your Bid: Enter your bid amount and customise your application as needed.

5. Proceed to Payment: Choose UPI as your preferred payment method.

6. Approve Mandate: Open your UPI app to authorise the payment.

7. Place Your Order: Complete your application by placing the order.

Key Features of HDFC Sky's One-Click IPO:

• Easy Application: Apply in one click, minimising paperwork.
• Instant Notifications: Receive real-time updates on your application status and refunds.
• Unified Platform: Manage all your IPO investments in one convenient location.
• Apply Anywhere: Use the HDFC Sky app or portal to apply from any location.

Swiggy's IPO presents a significant growth opportunity, and with HDFC Sky's One-Click feature, the application process has never been easier. Don't miss out on this chance to invest efficiently!