Swiggy, the leading food delivery platform and Zomato’s main competitor, has been valued at $11.5 billion as of June 2024, according to 360 One WAM, formerly IIFL Wealth Management. This valuation comes as Swiggy continues to solidify its presence in the fast-evolving food delivery and quick commerce industries while preparing for its highly anticipated initial public offering (IPO).
360 One WAM’s valuation is based on Swiggy’s impressive financial performance during the first half of the fiscal year 2024 (H1 FY24) and its promising growth outlook. Swiggy generated ₹7,474 crore in revenue during this period, projecting an annual revenue of approximately ₹14,947 crore by March 2024. The upcoming IPO, which Swiggy has confidentially filed for, is expected to be one of the largest tech listings in India this year. Despite its robust growth, Swiggy’s IPO valuation is anticipated to be slightly below Zomato’s, with estimates ranging between $13 billion and $15 billion.
In a recent investor presentation, 360 One WAM highlighted Swiggy’s progress toward achieving EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) breakeven—a significant step towards long-term profitability. Swiggy’s gross order value (GOV) for H1 FY24 reached ₹17,528 crore, representing a 27% year-on-year (YoY) increase.
Swiggy’s core food delivery segment saw an 18% YoY rise in order volume, while its Instamart service recorded an impressive 57% YoY growth. Additionally, Swiggy’s Dineout business, which connects users with dining deals at partner restaurants, experienced extraordinary growth of 188% YoY. During H1 FY24, Swiggy managed to reduce its monthly cash burn to ₹181 crore, down from ₹336 crore in FY23. With a cash reserve of ₹6,000 crore as of September 2023, Swiggy is well-positioned to scale its operations while maintaining tight control over costs.
As a major investor in Swiggy, 360 One WAM has played a crucial role in supporting the company’s expansion in the lead-up to its IPO. Formerly known as IIFL Wealth Management, 360 One WAM has become a significant player in India’s wealth management sector, managing $3 billion across private equity and venture capital strategies. In 2022, Bain Capital acquired a 25% stake in 360 One WAM, and the firm recently raised $500 million for its inaugural secondary fund. Chief Investment Officer Sameer Nath stated that the funds would be allocated to companies poised to go public within the next two years.
Swiggy’s market position is especially noteworthy when compared to its chief rival, Zomato. Zomato, which went public earlier, has seen its market capitalization rise from $21.5 billion in June 2024 to $28 billion, driven by rapid growth in its quick commerce arm, Blinkit. Swiggy’s Instamart, which competes directly with Zomato’s Blinkit and Zepto, has emerged as a critical growth driver for the company. As quick commerce outpaces traditional food delivery in growth, particularly in metro areas and tier-2 cities, Swiggy’s focus on this sector offers substantial opportunities for scaling, distinguishing it from the more competitive and incrementally growing food delivery market.
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