Swiggy IPO: Strong Growth but Ongoing Losses - What Investors Should Know

Swiggy’s IPO, priced at ₹371-₹390 per share, is open from November 6 to November 8.

The company aims to raise ₹11,327 crore, with ₹4,499 crore from new shares and ₹6,828 crore from an offer-for-sale. It has already secured ₹5,085 crore from anchor investors.

Swiggy operates in the fast-growing food delivery and quick-commerce sectors.

In FY24, it recorded a Gross Order Value (GOV) of ₹24,717 crore.

The company completed 577.7 million orders during the same period.

Swiggy’s active user base grew by 11.6% annually, reaching 14.29 million users.

Swiggy expanded its Instamart service to 32 cities in under four years.

Although Swiggy has experienced growth, it has reported losses since its inception, including a ₹2,350 crore loss in FY24.

The company faces intense competition and risks like health issues, payment challenges, and seasonality.

Despite this, its all-in-one app, offering food delivery, dine-out services, and essentials, continues to be a major draw for both users and partners.

Despite steady revenue growth from ₹5,704 crore in FY22 to ₹11,247 crore in FY24, its ongoing losses raise concerns about long-term financial stability.