Swiggy’s ₹11,327.43 crore IPO raises significant concerns as the food delivery platform has reported continuous losses since its 2014 inception, according to SAMCO Securities’ analysis.
The Bengaluru-based startup confronts intense competition from Zomato in the food delivery sector, potentially impacting its market share and customer acquisition costs. Additionally, its business model heavily depends on retaining gig-economy delivery partners, whose flexible working arrangements could affect service reliability.
At the upper price band, Swiggy’s post-issue market capitalisation is expected to reach ₹87,299 crore. The minimum lot size is set at 38 shares.
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The fresh capital will be used for repaying borrowings through its subsidiary Scootsy, expanding its quick commerce dark store network, and investing in technology infrastructure. As of September 2024, Swiggy operates 605 dark stores across 43 Indian cities through Instamart.
Despite these challenges, the company positions itself as India’s only integrated platform offering food delivery, dining out, and grocery shopping services through a single app, with approximately 19,000 SKUs in its grocery segment.