Swiggy IPO fairly priced; do not see much downside from here: Rahul Jain
Rahul Jain, Director, Dolat Capital, says quick commerce becoming better than food delivery is kind of an obvious thing. Swiggy being different from Zomato is basically having a common fleet and there is a certain leverage from the same consumer base. Is that going to change the play or make unit economics favourable? That is what Swiggy needs to demonstrate in the coming period and a differentiating angle that they can probably bring into the space.
Should one subscribe to the Swiggy IPO?
Rahul Jain: It would be very difficult for us to call at this point because there is very limited understanding in terms of what this company is actually going to do to change the matrix versus what the largest company is doing. At this point, it is clear that they are behind the curve in terms of improving the profitability of the business, which is an important element for valuation. And competition in this space is actually heating up. So, there is not much to talk about, not much debate on that element and thus, in that absence, it becomes a difficult call to make.
But if we go by whatever limited information we have, limited roadmap, we heard from them in their IPO interaction and the interview, for us it looks like a fairly priced IPO. Do not see much downside from here, but do not see anything great actionable upside here as well.
Could Swiggy do what Zomato did? Zomato’s numbers were not great, but they started turning it around. And when it turned, it became a force to reckon with. Rahul Jain: Yes, the real question is
