Swiggy, launched in 2014, has steadily grown from a food delivery startup to one of India’s leading technology-driven convenience platforms. By facilitating food, grocery and logistics services through a single intuitive app, Swiggy reaches out to millions of people in urban India. The upcoming Initial Public Offering (IPO) in November 2024 marks a major opportunity for investors eager to join this digital growth story.

The Indian stock market is buzzing with anticipation as it gears up for the much-anticipated Swiggy IPO. This landmark event not only marks a milestone in the the history of the stock exchange but it also reflects growing confidence in the country’s digital and on-demand services sector. As Swiggy opens its doors to public investors, it showcases the immense potential and growth trajectory of India’s technology-driven economy.

Here’s an in-depth guide on what you need to know about Swiggy’s IPO and how to participate smoothly using HDFC Sky’s one-click IPO feature.

Company Overview: Swiggy’s expanding digital ecosystem

Swiggy has positioned itself as India’s leader in on-demand delivery and hyperlocal commerce. With a multi-service approach, Swiggy offers users various convenience offerings including grocery delivery, grocery delivery through Instamart, restaurant bookings with Dineout, event bookings through SteppinOut and package deliveries using Genie. Through these services, Swiggy reaches over 112 million active users, driving engagement with nearly five average monthly transactions per user. The Swiggy One membership plan and in-app payment options like Swiggy Money and Swiggy UPI further simplify the user experience.

Swiggy’s recognition in Kantar’s BrandZ 2024 report as a leading consumer technology and services brand underscores its strength in the Indian consumer market. By continuously expanding and creating value for restaurant and merchant partners, Swiggy has built its reputation as a trusted brand for digital services and innovative convenience solutions.

Key IPO Information and Timeline

Swiggy’s IPO, structured as a book-build issue, aims to raise Rs 11,327.43 crore. This includes a fresh issue worth INR 4,499 crore and an offer for sale totaling INR 6,828.43 crore.

• IPO opening date: November 6, 2024
• IPO closing date: November 8, 2024
• Display date: November 13, 2024
• Nominal value: 1 INR per share
• Price band: ₹ 371 – ₹ 390 per share
• Batch size: 38 actions
• Discount for employees: 25 INR per share
• Total shares offered: 290,446,837 shares
• Type of problem: Built in book
• Listing at: BSE, NSE

Investors can look forward to the allotment on November 11, with redemptions initiated and shares credited to Demat accounts by November 12. The listing will follow on November 13, 2024, both on BSE and NSE.

Allocation of Funding: Strategic Focus of Swiggy IPO

Swiggy’s IPO proceeds are aimed at strengthening several key areas of growth:

• Scootsy Investments: Funds will be used to repay portions of Scootsy’s outstanding debt.
• Dark Store Expansion: The new capital will bear lease/license expenses to expand the infrastructure of the Quick Commerce segment.
• Technology and cloud investments: Improvements to Swiggy’s cloud-based technology will enhance service quality and scalability.
• Marketing and brand initiatives: Marketing funds will increase Swiggy brand recognition and user awareness.
• Inorganic growth opportunities: Swiggy will explore acquisitions to accelerate its market presence and expand services.

The application process

Investors will have to go through a simple application process to participate in the Swiggy IPO. First of all, it is essential to create a demat account. This account is required to hold shares electronically, facilitating investment management.

Several banks and financial institutions offer simple procedures for opening a demat account. After creating demat account, investors can apply for IPO through them stock commercial APPLICATION or online platforms provided by banks or their brokers.

Steps to Apply for Swiggy IPO

1. Demat account opening: If you don’t have one, start by choosing a financial institution that fits your needs.
2. Complete KYC: Make sure your Know Your Customer (KYC) details are up to date.
3. Apply for IPO: Enter the number of shares you wish to bid for and submit your request.
4. Wait for allocation: Once the auction period closes, wait for allo

Instant financial performance

A quick look at Swiggy’s recent financials gives an insight into its position as a high-growth, yet loss-making company.

While Swiggy has seen impressive revenue growth, net losses continue, albeit narrowing from ₹ 4,179.31 crore in FY2023 to ₹ 2,350.24 crore in FY2024, indicating efforts towards financial stabilization.

Swiggy’s strengths and challenges

Notable strengths

• Market leadership: Swiggy holds a strong position in hyperlocal commerce, especially in urban India.
• Various offers for users: From food delivery to event bookings, Swiggy offers services that increase user engagement.
• Technology driven expansion: Swiggy’s unified application and cloud infrastructure enable rapid rollout of services, keeping it ahead in convenience and scalability.
• Recognized brand: Swiggy’s recent recognition in the Kantar BrandZ report highlights its credibility and popularity among consumers.

Key risks

• Ongoing losses: Despite revenue gains, Swiggy is facing persistent net losses, which may create concerns for long-term investors.
• Competitive pressure: Maintaining a strong user base is a challenge as competitors innovate and offer attractive offers.
• The regulatory landscape: Potential changes in e-commerce policies could disrupt Swiggy’s business model or service delivery approach.
• Operational complexity: Effective management of services, especially Dark Stores, remains critical to service reliability.

Growth Vision: Swiggy’s future goals

Swiggy’s growth strategy focuses on expansion, customer engagement and cost efficiency:

1. Enhanced partner network: Expanding vendor partnerships will enable Swiggy to diversify its offerings and enhance convenience.
2. Scaling Quick Commerce: Increased investment in Dark Stores will expand Swiggy’s product range and improve delivery time.
3. Technological advances: Swiggy plans to refine its technology stack for a smoother user experience and increased operational scalability.
4. Brand Marketing: Through targeted advertisements and promotions, Swiggy aims to increase brand recall and user loyalty.
5. Margin optimization: By expanding operations and introducing high-margin offerings, Swiggy is looking to improve profitability over time.

Share Reservation: Allotments to different investors

The IPO will allocate shares according to the following structure:

• Qualified Institutional Buyers (QIBs): minimum 75% of the issue.
• Non-Institutional Investors (NIIs): Up to 15% of the problem.
• Retail investors: Up to 10% of the problem.

Mutual funds and diversification

Investors looking to diversify their portfolios might consider mutual funds that focus on the technology and digital services sector. With Swiggy’s IPO highlighting growth in India’s online food delivery industry, sector mutual funds offer a way to invest in the digital economy while managing individual risk. For convenience, a mutual fund app provides easy access to mutual funds, allowing investors to track performance and choose funds that align with their goals.

Hassle-free investment with HDFC Sky’s one-click feature

For those interested in applying for the Swiggy IPO, HDFC Sky is offering a simplified process through its One-Click IPO tool. Here’s a quick guide to using this feature:

1. Log in: Access your HDFC Sky account.
2. Select IPO: Navigate to the ‘IPO’ section under ‘Indian Stocks’ and find Swiggy.
3. Place your offer: Enter the offer you want and customize the options as needed.
4. Payment approval: Use UPI to confirm payment.
5. Order confirmation: Complete and submit the application.

With real-time notifications, a consolidated IPO dashboard and remote access through the app, HDFC Sky’s One-Click feature makes the investment process easy and efficient.

Conclusion: Swiggy’s IPO — A window into India’s on-demand future

As Swiggy opens its doors to public investment, it is a compelling choice for those interested in India’s growing convenience economy. Swiggy’s rapid growth, innovative service model and technology infrastructure make it a company to watch. With the added benefit of HDFC Sky’s one-click IPO feature, participating in this promising IPO has never been more affordable.