Swiggy, a new platform that delivers food and groceries, saw its shares drop by 4.4% on Wednesday morning, reaching a low of Rs 519.50 on the BSE stock exchange. This happened because 6.5 crore shares, which represent 3% of all Swiggy shares, became available for trading after the end of a lock-in period for early investors. Some of these investors might have sold their shares to take profits.
Despite this drop, Swiggy’s stock is still up about 33% compared to its initial public offering (IPO) price. Just before this drop, the stock climbed over 5% after a global brokerage called CLSA gave it a positive review, saying it expects Swiggy to grow and become more profitable. CLSA thinks that the demand for fast delivery services in India will grow six times from 2024 to 2027.
In its latest financial report, Swiggy shared that its revenue grew by 30% year-over-year, reaching Rs 3,601.5 crore, a jump from Rs 2,763.3 crore in the previous quarter. This shows strong growth for the company, as the total value of customer orders also rose 30% to Rs 11,306 crore.
Another research firm, Motilal Oswal, believes that Swiggy’s food delivery business will grow by 12.5% annually, while its quick delivery service is expected to grow even faster at 23.6% per year. They mentioned that Swiggy plans to grow quicker than its main competitor, Zomato, in the food delivery sector.
Swiggy also has ambitious plans, including doubling the number of its dark stores (warehouses for quick deliveries) by March 2025 and investing Rs 1,600 crore in its Scootsy Logistics. Additionally, they are starting a new subsidiary focused on sports ventures.
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