All articles tagged with #swiggy
Swiggy, the Indian food delivery giant, saw its shares rise nearly 8% on its trading debut after completing the country's second-largest IPO of the year, raising 113.27 billion rupees ($1.34 billion). The IPO was oversubscribed more than three times, with strong interest from institutional and retail investors. Proceeds from the IPO will be used to pay down borrowings and fund potential acquisitions.
Swiggy's upcoming IPO will test India's appetite for large tech IPOs, as it seeks a $1.4 billion public debut, following in the footsteps of rival Zomato. Despite challenges faced by large IPOs in India, Swiggy's strong position in the duopolistic food delivery market and its quick-commerce arm, Instamart, make it an attractive prospect. The IPO will also reflect investor confidence in growth-focused business models amid global economic uncertainties, with significant returns expected for investors like Prosus and Accel.
Swiggy, a leading food-delivery startup in India, successfully launched a rapid grocery delivery service, overcoming skepticism from investors and competition from major players like Amazon and Tata's BigBasket. CEO Sriharsha Majety convinced investors of the potential for growth in the online grocery market, especially during the Covid lockdowns, leading to Swiggy's competitive edge in the industry.
Swiggy's $1.3 billion IPO has received a lukewarm response from Indian investors, despite being oversubscribed by institutional investors. The company, valued at $11.2 billion, faces challenges in a competitive market dominated by Zomato and newer entrants like Zepto. Swiggy's losses have widened, and its IPO comes amid a downturn in the Indian stock market and weak corporate earnings. The company plans to use IPO proceeds to expand its quick commerce network, but analysts remain cautious about its growth prospects.