Swiggy has recently cut down its valuation by 25% from an initial $15 billion to $11.3 billion as it they are preparing for its initial public offering (IPO). This adjustment might be due to the company’s response to the market conditions and investor sentiment. With the recent Hyundai listing that might have had an effect on their valuation. The decision might also highlight Swiggy’s efforts to improve financial stability with increasing competition in the food delivery sector.
As per the sources mentioned by Reuters, Blackrock and Canada Pension Plan Investment Board are looking to invest. This issue is set to be the second largest in India this current year.
Financials
In their DRHP, The company has reported operational revenue of Rs. 11,247 crore in FY24 which is 36 percent higher than Rs. 8,264 crore in FY23. Net loss stood at Rs. 2,350 crore in FY24, an improvement and reduction in losses which is a 43.76 percent increase from Rs. 4,179 crore in FY23.
Important Financial Ratios
The Return on net worth is around -30.16 percent in FY24. From the previous year, the ratio has improved due to a reduction in losses. The Net asset value in FY24 stood at Rs. 35.48 per equity share. From FY22, it is in a declining trend.
Food Delivery Sector
The food delivery sector in India has experienced significant growth which is driven by increasing consumer demand for convenience and variety. Players like Swiggy and Zomato dominate the market, which is projected to reach Rs. 2.12 lakh crore by 2030 and grow at an 18% CAGR. The industry continues to expand into smaller cities which enhances accessibility and service offerings.
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Peers
Zomato Limited is the only listed company competitor for Swiggy. When compared, the zomato is profitable whereas Swiggy is yet to be profitable. Revenue-wise, both companies have a near the same size. The gross order value for Swiggy stood at Rs. 6,808 crores compared to Zomato’s 5,958 crores. Swiggy’s average order value stood at Rs. 436 which is higher than Zomato’s Rs. 423. The average monthly transaction users for Swiggy was 14.03 million higher than 12.56 million of Zomato.
Company Profile
Swiggy Limited was founded in 2014 and is headquartered in Bangalore. It is one of the leading Indian online food delivery platforms. They are operating in over 580 cities. They connect customers with local restaurants and offer a wide range of cuisines. Swiggy also
provides quick commerce services through Swiggy Instamart and same-day deliveries via Swiggy Genie to enhance convenience for users.
Written by Santhosh
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