Swiggy Unlisted Shares: Why Investors Are Buzzing Ahead of the $15 Billion IPO
Aug 31, 2024
Have you heard that the online food delivery industry in India has seen development in recent years? There is a prediction that the market will reach a substantial $43.78 billion through 2024, propelled by using an estimated compound annual increase charge (CAGR) of 15.98% from 2024 to 2029. It is estimated that the market will grow to a vast $91.88 billion through 2029. Amidst this flourishing quarter, Swiggy, a leading competitor, is generating huge buzz, extensively with its upcoming Swiggy IPO and the recent recognition of its unlisted shares.
Swiggy's Journey towards IPO:
Swiggy, based in 2014, has become a key player in online food delivery and quick commerce. The company has attracted investor interest, majorly from US investor Baron Capital and other leading investors. In recent years, Swiggy, a leading food delivery platform in India, has increased its offerings by coming into quick commerce and grocery delivery via Instamart, further to other varied customer services.
Financial Performance
Swiggy's financial reviews indicate sturdy growth, yet the business enterprise is working towards accomplishing profitability. In FY24, Swiggy made ₹5,476 crore in revenue from its operations, and it additionally recorded a loss of ₹1,600 crore. These statistics indicate the demanding challenges facing Swiggy, while additionally highlighting its ambitious growth strategy.
Swiggy saw a rise in sales of ~58% in FY23 over FY22, showcasing a significant increase in the company's performance.
Valuation and IPO Buzz
SoftBank backed Indian food delivery platform Swiggy is poised to launch its IPO shortly. Thus, according to Baron Capital, the value of the company was $14.74 billion in June 2024 and a $15 billion valuation at the time of the IPO. Because of the great interest, investors are actively purchasing the unlisted stocks of Swiggy, looking ahead to the fact that the next IPO will entice between Rs 8,500 and Rs 10,000 crore.
Swiggy’s initial IPO price per share was Rs 350, Swiggy unlisted shares are now Rs 440-450, which demonstrates that investors have faith in the company. The involvement of big investors like Amitabh Bachchan has also raised curiosity because his family office has bought shares of Swiggy from the employees and early investors. In the same way, Raamdeo Agrawal, who manages Motilal Oswal Financial Service, also invested in Swiggy unlisted Shares before its IPO.
Varied Valuations Reflect Investor Optimism
Swiggy’s valuation has been a topic of a good deal of debate among investors. While Baron Capital pegs the company’s valuation at $15.1 billion, other investors like 360 One WAM (formerly IIFL Wealth Management) value it at $11.5 billion, and Invesco estimates it at $12.3 billion. These differing valuations mirror the diverse expectations for Swiggy IPO market performance.
The Primary Objectives of Swiggy's IPO
Swiggy’s IPO isn't just raising capital; it’s a strategic move to solidify its marketplace position and future growth. The funds raised could be used to make Swiggy's presence in present and new markets, enhance its delivery infrastructure, and investment on technology in order to drive innovation. The company also aims to diversify its offerings beyond food delivery, with offerings like Instamart and Swiggy Genie, which have proven great potential.
Swiggy Vs Zomato: A Quick Comparison
Swiggy | Zomato | |
Establishment | 2014, Bengaluru | 2008, Gurugram |
Listing Status | Unlisted | Listed |
Total Market Share | 43% | 55% |
Market Capitalization | 885 bn | 115 bn |
Daily Orders | 14 lakhs | 12.5 lakhs |
Delivery Partners | 2,10,000 | 1,80,000 |
Other Services | Swiggy One, Instamart Genie, Dineout | Zomato Gold, Blinkit, Advertising, Hyperpure |
Key Insights on Unlisted Shares and Market Expectations
As of August 30, 2024, the Swiggy unlisted share price stands at ₹460 per share. This valuation highlights the significant interest and confidence investors have in the company ahead of its upcoming Swiggy IPO.
Swiggy, renowned for its expansive food delivery and quick-commerce services, is set to make waves in the stock market. The company's robust growth strategy and diversified offerings have made its Swiggy Unlisted shares increasingly valuable in the Pre-IPO market.
Investors are closely monitoring the Swiggy Pre-IPO phase, where the current Swiggy share price in unlisted Pre-IPO market is a strong indicator of the company's anticipated performance. The substantial valuation of ₹460.00 per share reflects the market's positive sentiment and eagerness to participate in the upcoming IPO.
Why Investors are Attracted to Swiggy
Investors are increasingly drawn to Swiggy for several compelling reasons:
Surging Demand for Unlisted Shares: Swiggy’s unlisted shares have become a hot commodity among investors in the pre-IPO market. Initially priced at Rs 350 per share, these shares are now trading at Rs 440-450 per share. The growing demand for Swiggy's unlisted shares reflects the high confidence that market participants have in the company’s future prospects.
High-Profile Investors: The buzz around Swiggy’s upcoming IPO has attracted high-profile investors, including Amitabh Bachchan’s family office and Motilal Oswal Financial Services chairman Raamdeo Agrawal. Their investments, made through secondary share sales valued at around $10-11 billion, underscore the strong belief in Swiggy’s potential to dominate the quick commerce and food delivery sectors.
Strong Market Position: Swiggy's growth in the quick commerce sector, particularly through its grocery delivery service Instamart, has positioned the company as a leader in this rapidly expanding market. The increasing interest from high-net-worth individuals (HNIs) and family offices highlights the attractiveness of Swiggy’s diversified business model.
Solid Growth Trajectory: Swiggy’s rapid growth in the food delivery sector, coupled with its expansion into quick commerce, has made it an attractive investment. The company’s unlisted shares have surged in value, reflecting positive market sentiment.
Market Leadership and Innovation: Swiggy’s ability to adapt to changing market conditions and consumer preferences, such as its foray into quick commerce, has cemented its position as a market leader. The company’s innovative approach and strategic investments in technology and infrastructure make it a key player in the rapidly growing online food and grocery delivery sectors.
Conclusion
Swiggy is gearing up for an IPO which is anticipated to have a primary impact on India's tech and delivery sectors. The business's appeal to prominent investors, together with its creative enterprise approach and strategic market placement, creates an interesting investment opportunity.
However, investors should closely monitor Swiggy’s path to profitability as the company continues to navigate the competitive landscape of India’s online food and grocery delivery markets. As Swiggy prepares to go public, the excitement surrounding its unlisted shares and future growth prospects is only expected to intensify.