Founded in 2013, Swiggy Limited pioneered the hyperlocal commerce space in India, beginning with food delivery in 2014. It subsequently expanded its offerings, adding a diverse range of services to address the growing needs of urban customers. Key Swiggy services include Swiggy (food delivery), Instamart (household items), Dineout (restaurant reservations), SteppinOut (event bookings), Genie (pick-up and drop-off), and Swiggy Minis (hyperlocal commerce).
Swiggy’s business model encompasses not just food delivery but also out-of-home consumption, B2B logistics, and quick commerce. The company supports wholesalers and retailers with warehousing, logistics, and distribution. And, as of June 2024, Swiggy’s workforce totaled 5,401 employees.
Instamart and Out-of-Home Dining
Instamart’s reach spanned 557 dark stores as of mid-2024, with these fulfillment centres strategically placed to support high-demand zones across multiple cities. As of 30 June 2024, Instamart processed 55.9 million orders, achieving a Gross Order Value (GOV) of ₹2,724 crore and an Average Order Value (AOV) of ₹487.
For dining experiences, Dineout served as Swiggy’s platform for restaurant reservations, partnering with an average of 33,352 restaurants monthly. By Q1 FY25, Dineout facilitated over 2 million transactions, with an AOV of ₹3,236 per transaction and gross revenue of ₹46.7 crore.
Food Delivery Segment
Swiggy’s core food delivery service achieved a GOV of ₹6,808 crore in Q1 FY25, completing over 155.9 million orders within the same timeframe. Average Monthly Transacting Users (MTU) on the platform reached 12.73 million in FY24, representing an 11.6% CAGR over three years.
IPO and Financial Summary
Swiggy Limited is now preparing for its initial public offering (IPO) with a total issue size of ₹11,327.43 crore, comprising ₹4,499 crore in fresh issuance and ₹6,828.43 crore as an offer for sale. Its shares will be listed on the NSE and BSE.
Company Details
- Established: 2013
- Type: Private
- CEO: Sriharsha Majety
Key Financial Data (₹ Crore)
| Category | FY22 | FY23 | FY24 |
|---|---|---|---|
| Revenue | 5,704 | 8,264 | 11,247 |
| Net Loss | 3,628 | 4,179 | 2,350 |
Strengths and opportunities
Swiggy has cemented its place in India’s high-frequency commerce sector, particularly excelling in food delivery and quick commerce. By engaging users frequently and fostering customer loyalty, Swiggy’s influence has grown substantially. In FY24, the company’s Gross Order Value (GOV) for food delivery hit ₹24,717.4 crore, delivering over 577.7 million orders. Over three years, Monthly Transacting Users (MTU) on Swiggy increased consistently, reaching 14.29 million in FY24.
Risks and threats
Despite its growth, Swiggy has yet to turn a profit, grappling with continued net losses and negative cash flows since its inception. To address this, Swiggy’s financial stability depends heavily on sustained customer acquisition and high retention rates. The company also faces intense competition across its primary service areas, particularly in dining out, a sector predicted to grow at 46% to 53% between 2023 and 2028.
You can now apply for the Swiggy IPO on Upstox. Click here.