SoftBank-backed Swiggy saw its shares surge nearly 17% on their trading debut in India on Wednesday, reflecting growing investor optimism in food and grocery delivery companies as more consumers turn to online shopping and demand faster deliveries.
Swiggy delivers 17% surge in debut
Swiggy’s stock outperformed the broader Indian market, which experienced a sharp decline, and exceeded analysts' expectations for the loss-making company following its $1.4 billion IPO—the second largest in India this year. The shares closed at 456 rupees ($5.41) on the National Stock Exchange, valuing the company at approximately $12.1 billion, after hitting an intraday high of 465.8 rupees.
Swiggy and its primary competitor, Zomato, are capitalizing on a surge in new online shoppers in India by expanding into “quick commerce” grocery deliveries that promise orders within 10 minutes, diversifying beyond their core food delivery services.
The rapid growth of quick commerce has impacted traditional supermarket revenues, prompting competitors like Mukesh Ambani, Asia's richest man, to introduce faster delivery options from his retail outlets across India.
"Explosive growth"
At the listing ceremony in Mumbai, Swiggy board member Anand Kripalu highlighted the "explosive growth" of Swiggy's quick commerce arm, Instamart.
Dutch technology investor Prosus (PRX.AS), which holds a 25% stake in Swiggy, reported a $2 billion gain from its investment. Meanwhile, SoftBank owns around 8% of the company.
The listing comes amid regulatory scrutiny, with Swiggy and Zomato facing antitrust investigations over potential violations in the food delivery sector and calls from retail associations to examine their quick commerce services for alleged predatory pricing practices.
