Swiggy IPO: EVERYTHING You Need to Know BEFORE It's Too Late! ⏰

Rakesh Bansal

16 Sept 202411:56

Summary

TLDRThe video discusses the upcoming blockbuster IPO of Swiggy, India's leading food delivery platform, which is set to be one of the biggest public listings in the country. The IPO is anticipated to capitalize on the company's growth momentum, with Swiggy announcing plans to issue fresh shares worth INR 50 billion, raising the total IPO value to approximately $1.4 billion. The video also compares Swiggy's financial performance with that of Zomato, highlighting Swiggy's significant market expansion and operational efficiency. It further explores Swiggy's strategic initiatives, including partnerships with local brands and the launch of a new feature for private ordering, positioning the company for a strong presence in the evolving market landscape.

Takeaways

📈 Swiggy is preparing for a blockbuster IPO that could shake up the market with big names like BigBasket and Zomato already listed.
💼 Swiggy's market share is around 45% in the Indian food delivery business, with 104 billion rupees for 16 to 17 million daily transactional customers.
🚀 The initial public offering (IPO) is aimed at supporting Swiggy's expansion strategy beyond food delivery into other services.
📊 Swiggy's IPO size has been revised upwards; it initially planned to raise 66.6 billion rupees but has now increased to approximately 1.4 billion US dollars.
💹 The company announced on September 10th, 2024, that it will issue fresh shares worth 50 billion rupees, which is 12.5 billion rupees more than initially planned.
🔝 Swiggy's financial performance shows significant growth, reporting a revenue of 42.1 billion rupees, more than double from the previous year.
📉 Despite not achieving consolidated profitability yet, Swiggy has shown notable progress in reducing its losses by 44% compared to the previous year.
🌐 Swiggy is expanding its presence by entering tier-2 and tier-3 markets and partnering with local brands to offer regional products.
🛒 The Indian food delivery market is expected to grow at a CAGR of 30-40% in the next few years, with Swiggy well-positioned to benefit from this growth.
📚 Investors are advised to conduct thorough research and ensure that any investment decisions align with their financial objectives and risk tolerance.

Q & A

What is the significance of the upcoming IPO for Swiggy?
-The upcoming IPO for Swiggy is significant as it is expected to be one of India's biggest public listings, capitalizing on the growth momentum and positioning Swiggy as a significant player in the evolving market landscape.
What was Swiggy's initial plan for its IPO size?
-Initially, Swiggy planned to raise around 66.6 billion INR through an offer for sale and ₹ 37.5 billion through a fresh issue of shares.
How has Swiggy revised its IPO plans according to the latest news?
-According to the latest news, Swiggy has decided to increase the size of its IPO. It announced on September 10th that it will issue fresh shares worth ₹ 50 billion, which is ₹ 12.5 billion more than the initial plan, making the total IPO value approximately 1.4 billion USD.
What is the expected impact of Swiggy's IPO on the market?
-Swiggy's IPO is expected to make a significant impact on the market, potentially becoming one of the biggest public market debuts and highlighting the growth potential within the food delivery space.
How does Swiggy's growth compare to its peer Zomato?
-Swiggy's growth is more than double that of Zomato in the same period, indicating significant market expansion within the food delivery space and a strong position for Swiggy.
What was the financial performance of Swiggy and Zomato in their latest reported quarter?
-In their latest reported quarter, Swiggy reported a revenue of ₹ 42.1 billion with a net profit of ₹ 20 million, while Zomato reported a revenue of ₹ 12.1 billion with a net loss of ₹ 23.5 billion.
What strategic steps has Swiggy taken to improve its financial position?
-Swiggy has made notable progress in reducing its losses, achieving a reduction of 44% compared to the previous year, largely due to the success of its smart quick commerce platform.
What are Swiggy's expansion plans in terms of its operational cities?
-Swiggy plans to expand its presence by increasing its total operational cities to 43 and has recently launched in 11 Indian cities, including Mysore, Bhopal, and others.
How is Swiggy enhancing its offerings to customers?
-Swiggy is enhancing its offerings by partnering with local brands and vendors to provide customers with access to regional preferences-based products, such as Naras food and Ideal ice cream.
What is Swiggy's strategy for the quick commerce market?
-Swiggy's strategy for the quick commerce market involves expanding its dark store network across assisting and new cities and integrating its assortment to meet the rising demand.
What are the expected trends in India's D2C market that could benefit Swiggy's growth?
-The D2C market in India is expected to grow at a CAGR of 30-40% in the next few years, with trends such as brand diversification, personalization, and the integration of offline and online sales channels, which could benefit Swiggy's growth.

Outlines

00:00

📈 Upcoming IPO: Swiggy's Growth Momentum

Swiggy, India's leading online food ordering and delivery platform, is gearing up for an Initial Public Offering (IPO) that could potentially shake up the market. The company has been preparing for this blockbuster IPO with significant growth and momentum. Swiggy has recently announced an increase in its Fresh Issue from the initially planned 37.5 billion INR to 50 billion INR, raising the total IPO value to approximately 1.4 billion USD, surpassing the initial estimate of 1.3 billion USD. This move is expected to position Swiggy's IPO as one of the biggest public market debuts in India. The company aims to use the funds to support its expansion strategy beyond food delivery and to offer a broader range of services. Swiggy's market share is around 45% in the Indian food delivery business, with significant daily transactional customers. The company's financial performance has been remarkable, with a revenue of 42.1 billion INR, more than double from the previous year. Despite not yet achieving consolidated profitability, Swiggy's operational efficiency and strategic progress are evident, setting the stage for a promising IPO.

05:02

💹 Financial Performance and Strategic Progress

The script delves into Swiggy's financial performance, highlighting a significant reduction in net losses, down to 23.5 billion INR, compared to the profits of Zomato. Swiggy's revenue for the financial year 24 stands at 112.5 billion INR, slightly higher than Zomato's 12.1 billion INR. The company's smart quick commerce platform has been a driver of its growth and operational efficiency. Swiggy is focusing on capitalizing on the growth momentum through its upcoming IPO, aiming to position itself as a significant player in the evolving market landscape. The script also mentions the strategic progress Swiggy has made, including the recovery from its losses and the expansion of its quick commerce operations. Swiggy's IPO is timed as the stock of Zomato has seen a significant rise, increasing investor confidence. However, Swiggy has not yet achieved consolidated profitability, which remains a challenge. The script advises investors to conduct thorough research and consider their financial objectives and risk tolerance before making investment decisions.

10:03

🚀 Market Expansion and Future Prospects

The final paragraph discusses Swiggy's market expansion and future prospects. Swiggy has been expanding its presence by launching in new cities and partnering with local brands and vendors to provide regional products to customers. The company is also planning to strengthen its presence in tier-two and tier-three markets by expanding its dark store network and integrating its assortment to meet the rising demand. Swiggy has recently launched an incognito mode feature, allowing users to place private orders, enhancing the food and grocery platform's privacy. With over 600 million internet users and 185 million online shoppers in the country, India has the third-largest digital shopping base after the United States and China. The direct-to-consumer market in India is expected to grow at a CAGR of 30-40% in the next few years, with trends like brand variety, personalization, and seamless shopping experiences driving the market. Swiggy is well-positioned to benefit from these favorable developments. The script concludes by emphasizing the importance of thorough research and aligning investment decisions with financial objectives and risk tolerance.

Mindmap

Keywords

💡IPO

An IPO (Initial Public Offering) refers to the process by which a private company goes public by offering its shares for sale to the general public in a stock exchange for the first time. In the context of the video, the main theme revolves around the upcoming IPO of Swiggy, an Indian online food ordering and delivery platform, which is anticipated to be one of India's biggest public listings.

💡Market Capitalization

Market capitalization, or market cap, is the total dollar market value of a company's outstanding shares of stock. It is calculated by multiplying the current market price of one share by the number of outstanding shares. The video discusses Swiggy's market cap in relation to its IPO, indicating the company's size and investor interest.

💡Growth Momentum

Growth momentum refers to the increasing rate of growth in a company's financial performance or market presence. The script mentions Swiggy's growth momentum, suggesting that the company is experiencing a period of rapid expansion and success, which is a positive sign for potential investors considering the upcoming IPO.

💡Food Delivery Business

The food delivery business involves the service of delivering meals prepared by restaurants to customers' homes or offices. Swiggy is a major player in the Indian food delivery market, as highlighted in the video, emphasizing the competitive landscape and the company's market share.

💡Expansion Strategy

An expansion strategy is a plan for growing a business by entering new markets, launching new products, or increasing market share in existing markets. The video discusses Swiggy's expansion strategy, including its plans to offer more services beyond food delivery and to expand its presence in new cities.

💡Financial Performance

Financial performance refers to how well a company is doing in terms of revenue, profit, and other financial metrics. The video analyzes Swiggy's financial performance, mentioning its revenue growth and net losses, which are crucial for investors to evaluate the company's health and potential for future profitability.

💡Investor Confidence

Investor confidence is the degree to which investors believe that a company's stock is a good investment. The video mentions that consistent profitability of Zomato, a competitor, has boosted investor confidence, setting a benchmark for Swiggy's IPO and its potential to attract investors.

💡Public Listing

A public listing is the process by which a company's shares are made available for trading on a stock exchange. The video discusses Swiggy's upcoming public listing through its IPO, which will allow it to raise capital and provide liquidity to its shareholders.

💡Private Market

The private market refers to the trading of securities that are not listed on a public exchange. The script mentions that big names like BigBasket have recently gone unlisted, indicating significant deals happening in the private market, which could be a precursor to Swiggy's IPO.

💡Regulatory Approval

Regulatory approval is the process by which a government or regulatory agency gives permission for a company to proceed with certain activities, such as an IPO. The video mentions that Swiggy's IPO plans are awaiting final regulatory approval, which is a critical step before the company can go public.

💡Strategic Progress

Strategic progress refers to the advancement of a company towards achieving its long-term goals and objectives. The video highlights Swiggy's strategic progress, such as its reduction in losses and expansion into new markets, which demonstrate the company's direction and potential for future success.

Highlights

Swiggy is preparing for an upcoming IPO that could shake up the market.

Large names like BigBasket are reportedly considering listings, indicating a significant market movement.

Swiggy's market share is around 45% in the Indian food delivery business with 16 to 17 million daily transactional customers.

The initial public offering aims to support Swiggy's expansion strategy beyond food delivery.

If Swiggy's IPO plan proceeds, it could become one of India's biggest public listings.

Swiggy initially planned to raise 66.6 billion INR through the offer for sale and 37.5 billion INR through a fresh issue of shares.

However, recent news suggests Swiggy is considering a larger IPO, raising the total value to approximately 1.4 billion USD.

This new issue would make Swiggy's IPO one of the biggest public market debuts, according to recent times.

Swiggy's growth is more than double that of Zomato in the same period, highlighting significant market expansion.

Financial performance shows Swiggy reported a profit of 2.5 billion INR, a remarkable quarter with a revenue of 42.1 billion INR.

Swiggy's financials present a more complex picture with a significant net loss of 23.5 billion INR, contrasting with Zomato's profitability.

Despite the losses, Swiggy has shown notable progress in reducing its losses, improving from 44% the previous year.

Swiggy's strategic progress is attributed to the success of its smart quick commerce platform, driving growth and operational efficiency.

Swiggy's upcoming IPO is poised to capitalize on the growth momentum, positioning itself as a significant player in the evolving market landscape.

The timing of Swiggy's IPO comes when Zomato's stock has increased by more than 67% in the last six months, making it one of India's hot stocks.

Several secondary transactions have occurred ahead of Swiggy's highly anticipated IPO, attracting prominent new investors.

Bollywood legend Amitabh Bachchan's family office has acquired a small stake in Swiggy, as reported on 28th August.

Swiggy's expansion plans include increasing its total operational cities to 43 and launching in 11 new Indian cities.

Swiggy is partnering with local brands and vendors to provide customers access to regional preference-based products.

Swiggy's smart strategy aims to strengthen its presence in tier two and three markets by expanding its dark store network and assortment.

India's digital food market is expected to grow at a CAGR of 30 to 40% in the next few years, with Swiggy positioned to benefit from this favorable development.

The pandemic has accelerated the convergence of offline and online shopping, with brands integrating online sales channels to enhance customer experiences.

Macroeconomic factors and trends such as growth in per capita earnings, along with a focus on brand variety and personalization, are expected to enhance sector performance.

With the emergence of several exciting players, it's a fantastic time to explore this space, but remember to conduct thorough research before making any investment decisions.