Swiggy, one of India’s leading food delivery platforms, has witnessed a significant surge in its share price, rallying 8% in just two trading sessions. This upward movement comes after brokerage firm IIFL Securities reiterated a bullish stance on the stock, projecting a 46% upside potential from current levels. Investors are closely monitoring Swiggy’s growth trajectory, especially as the company prepares for a potential IPO in the near future. Read More
Key Factors Driving Swiggy’s Stock Rally
1. Strong Growth in Food Delivery & Quick Commerce
Swiggy has expanded beyond food delivery into quick commerce (Instamart) and other verticals, strengthening its market position. The company has reported:
- Double-digit growth in order volumes.
- Increased average order value (AOV) due to premiumization.
- Expansion into tier-2 and tier-3 cities, boosting market share.
2. Improved Unit Economics & Path to Profitability
Swiggy has been focusing on cost optimization and improving unit economics, leading to:
- Reduced delivery costs per order.
- Higher take rates (commission from restaurants).
- Better operational efficiency through AI-driven logistics.
3. Positive Analyst Sentiment & Upgrades
IIFL Securities has kept its Swiggy “Buy” rating, stating:
- Market leadership in food delivery alongside Zomato.
- Strong growth potential in quick commerce.
- Valuation discount compared to peers.
4. IPO Speculation & Investor Interest
Swiggy is reportedly preparing for an IPO in 2024-25, which has attracted investor interest. The company’s last funding round valued it at $10.7 billion, and a successful listing could further unlock value.
Swiggy vs. Zomato: A Comparative Analysis
| Metric | Swiggy | Zomato |
|---|---|---|
| Market Share | ~45% (food delivery) | ~50% (food delivery) |
| Quick Commerce | Instamart (growing) | Blinkit (acquired) |
| Revenue Growth | 35% YoY (est.) | 40% YoY |
| Valuation | $10.7 billion | $13.5 billion |
| Profitability | Near-breakeven | Profitable (Q3 FY24) |
Why IIFL Prefers Swiggy Over Zomato?
- Higher upside potential (46% vs. Zomato’s 25-30%).
- Stronger quick commerce growth (Instamart gaining traction).
- Better unit economics in food delivery.
Swiggy’s Financial Performance (Key Highlights)
| Parameter | FY23 | FY24 (Est.) | Growth (YoY) |
|---|---|---|---|
| Gross Order Value (GOV) | $4.2B | $5.5B | 30%+ |
| Revenue | $1.1B | $1.5B | 36% |
| EBITDA Margin | -12% | -5% | Improving |
| Market Share | 42% | 45% | +3% |
Future Projections (2025-26)
- Revenue expected to cross $2 billion by FY26.
- EBITDA breakeven likely by FY25.
- IPO valuation could touch $12-15 billion.
Swiggy’s 10-Year Financial Journey (2014-2024)
| Year | Estimated Share Price (INR) | Net Worth (Valuation in USD) | Key Developments |
|---|---|---|---|
| 2014 | N/A (Pre-funding) | $0.1 Million (Seed Stage) | Founded in Bangalore |
| 2015 | N/A (Early-stage) | $15 Million (Series A) | Expanded to Delhi, Mumbai |
| 2016 | N/A (Private) | $200 Million (Series B) | Major growth in orders |
| 2017 | N/A (Unlisted) | $500 Million (Series C) | Acquired Scootsy (logistics) |
| 2018 | N/A (Pre-IPO) | $1.3 Billion (Unicorn Status) | Expanded to 50+ cities |
| 2019 | N/A (Secondary Market) | $3.3 Billion (Series G) | Launched Swiggy Stores |
| 2020 | N/A (Private Trades) | $3.6 Billion (COVID Impact) | Instamart (Quick Commerce) Launch |
| 2021 | N/A (Talks Prior to IPO) | $5.5 billion in Series J | competed with Blinkit and Zomato. |
| 2022 | N/A (IPO Prep) | $10.7 Billion (Series K) | Acquired Dineout |
| 2023 | N/A (Unlisted) | $10.7 Billion (Stable) | Focus on profitability |
| 2024 | Expected IPO Listing | $12-15 Billion (Projected) | IPO Plans Underway |
Key Takeaways from Swiggy’s 10-Year Growth
- Exponential Valuation Growth – From $0.1M (2014) to $10.7B (2024)
- Major Funding Rounds – SoftBank, Prosus, Naspers, and Accel led investments.
- IPO Expected in 2024-25 – Could push valuation to $15B+.
- Share Price (Unlisted Market) – Secondary market trades suggest steady appreciation.
Swiggy vs. Competitors: Valuation Comparison (2024)
| Company | Valuation (USD) | Market Share (Food Delivery) | IPO Status |
|---|---|---|---|
| Swiggy | $10.7 Billion | ~45% | Expected 2024 |
| Zomato | $13.5 Billion | ~50% | Listed (2021) |
| Blinkit | $1.5 Billion* | ~15% (Quick Commerce) | Acquired by Zomato |
*(Blinkit’s valuation as part of Zomato)
Future Projections (2025-2030)
- 2025: IPO likely at $12-15B valuation.
- 2026-27: Expected profitability & expansion into new verticals.
- 2030: Potential $25B+ valuation if quick commerce succeeds.
Risks & Challenges for Swiggy
Even while things are looking up, Swiggy still has certain risks:
- Competition from Zomato & Blinkit in quick commerce.
- Regulatory hurdles (food delivery fees, gig worker policies).
- Macroeconomic slowdown affecting discretionary spending.
Conclusion: Should Investors Buy Swiggy Shares?
With an 8% rally in two days and a 46% upside projected by IIFL, Swiggy appears to be an attractive bet for long-term investors. The company’s expansion in quick commerce, improving profitability, and potential IPO make it a strong contender in India’s tech-driven food delivery market.
Key Takeaways:
✅ IIFL sees 46% upside – Strong “Buy” recommendation.
✅ Quick commerce (Instamart) is a growth driver.
✅ IPO could be a major catalyst for further gains.
✅ Competition remains a risk, but Swiggy is well-positioned.
Investors should keep an eye on Swiggy’s upcoming financial results and IPO developments for further clarity.
