'Swiggy Quick Commerce Can Beat Food Delivery Business'

Mumbai: Quick trade capable of becoming greater than Food delivery The segment can benefit due to the large market opportunities, says Sri Harsha Majati, Co-Founder and Group CEO. Swiggysaid. The startup is set to launch its Rs 11,327 crore (about $1.4 billion) IPO – the second-largest public issue to hit the market this year and the sixth-largest ever after Hyundai Motor India’s Rs 27,870 crore offering. The big issue is on November 6.
“Quick commerce is operating in a much larger TAM (Total Addressable Market) than the food delivery market and is growing rapidly. So it’s fair to assume that it will definitely overtake food delivery sometime in the next five years. will leave behind.” Azmat told TOI in an interview.

'Swiggy Q-comm can beat the food delivery biz'

Founded in 2014, Swiggy is going public three years after arch-rival Zomato’s Rs 9,375 crore IPO hit Dalal Street. Mejty, ​​who unlike many other billion-dollar startup founders maintains a low profile, said that as a company, Swiggy wanted to go public when it was “ready” to handle the responsibilities. Which is first to market and it’s not all about “who. Going (public) first”. “I don’t think it’s useful to just fight in any race. We’re happy about the timing. It’s more about our preparation as a company than anything else,” he said.
Bidding for Swiggy’s IPO will begin on November 6 and close on November 8 at a price band of Rs 371-390 per share. At the upper end of the price band, the firm’s implied value is $11.3 billion, down from the valuation of about $$ billion previously targeted. “Pricing is a factor in a lot of things…what investors have thought about it, the pace of our overall performance. Macro plays a role, we can’t deny the fact that recently. There has been some relaxation,” said CFO Rahul Bothra. However, the IPO price is higher than the $10.7 billion the company raised $700 million from investors in January 2022.
Of the total funds to be raised through the offer, Swiggy is raising Rs 4,499 crore through a fresh issue of shares, while the remaining Rs 6,828 crore from existing shareholders including its largest investor Process and others such as Excel and Will be offered for sale by Elevation Capital. . After the listing, Prosus’ shareholding will drop below 25%.
Azmat said the company’s food delivery business is already profitable and losses for the Instmart business are narrowing without setting a target for net profit. “If the food delivery business is going to grow and become more profitable and the Instamart business is going to grow while reducing losses, then I believe we will not be too far from profitability,” he added.





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