On November 13, 2024, Indian food delivery company Swiggy saw its shares rise over 10% during its market debut, trading at 430.15 rupees ($5.1) after an IPO that raised $1.34 billion, the second-largest in India this year. This surge comes amid a booming stock market in India, which is the world's fifth-largest economy.
Despite concerns over competition from Zomato and Zepto, Swiggy's initial focus on innovation has given it an edge. However, analysts noted ongoing losses, which increased to 6.1 billion rupees ($72.3 million) in the June quarter, and a high valuation as potential drawbacks.
Group CEO Sriharsha Majety expressed optimism about India's economic growth, stating it would benefit Swiggy's operations. The company plans to allocate $66 million from its IPO proceeds to expand its warehouse network to enhance revenue and reduce losses.
Source: zawya.com