Swiggy's more a bet on Qcomm's rise than a Zomato 2.0 in the box
While the company does not have any identifiable promoter, several institutional investors such as Accel India, Apoletto Asia, Alpha Wave Ventures, DST Euro Asia and Norwest Venture Partners are partially divesting their stakes through the IPO. Proceeds from the fresh issue will be used to repay debt, add dark stores, invest in technology and cloud infrastructure, brand marketing and fund inorganic growth.
Business: The Bengaluru-based company started food delivery operations in 2014 followed by quick commerce in 2020. It currently runs a unified app which can be used for food delivery, quick delivery of grocery and household items (Instamart), restaurant reservations (Dineout), event bookings (SteppinOut) and for availing product pickup services (Genie). The app offers convenience, a better user experience, an increase in user and partner base as well as cross-selling of offerings. For instance, over 75% of Instamart users were acquired on food delivery.
For the quarter ended June, Swiggy had 15.9 million average monthly transacting users serviced through 557 active dark stores and 54 warehouses by 457,249 average monthly transacting delivery partners. The food delivery segment earned half of the gross revenues, has around 43% market share, and is the only segment to have turned adjusted Ebitda positive. Instamart, while being the fastest-growing segment, earned 11.6% of gross revenues in the June quarter.
Financials, Growth Prospects: Swiggy's revenues have grown at a CAGR of 40% over the last three financial
