Swiggy’s shares saw a significant surge of 15% following a modest IPO listing, pushing its market capitalization to a remarkable ₹1 lakh crore (approximately $12 billion). This surge reflects investor confidence in the company’s growth prospects, despite a history of increasing losses. For the fiscal year 2023, Swiggy reported strong revenue growth, especially in its food and goods delivery business, which saw a 58% year-on-year increase, contributing significantly to its overall revenue. However, Swiggy also faced rising expenses, particularly in marketing and employee costs, which increased as it ramped up operations to expand its offerings like Instamart, its grocery delivery service.
Despite ongoing losses, these measures are part of a broader strategy to position Swiggy for long-term profitability and growth in the competitive online food delivery market. The company is also gaining support from key investors, including Invesco, which has marked up Swiggy’s valuation multiple times ahead of the listing.