MUMBAI, Nov 13: Food delivery and quick-commerce major Swiggy on Wednesday said it is expecting “very solid” growth in the next 3-5 years and plans to expand its geographical footprint and stores network for Instamart business.
The company which made a strong debut on the stock exchanges on Wednesday said it has doubled the categories for quick commerce in the last 12 months.
“We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint, stores network for Instamart business,” Swiggy CEO Sriharsha Majety said post the listing ceremony.
Swiggy listed at Rs 412, reflecting a jump of 5.64 per cent from the issue price on the BSE. Later, it surged 15.12 per cent to Rs 449 apiece.
The Rs 11,327-crore initial public offer of Swiggy got fully subscribed on the final day of the share sale on Friday, ending with 3.59 times subscription. The initial share sale had a price range of Rs 371-390 a share.
The company’s IPO (Initial Public Offering) had a fresh issue of shares worth Rs 4,499 crore, along with an Offer-For-Sale (OFS) of Rs 6,828 crore.
Going by the draft papers, the company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; and debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.
Majety further noted that the company will continue to invest in various categories.
He also said that Instamart’s average delivery time has reduced over time in big cities, adding, “our delivery time has reduced from 17 minutes to 12 minutes.” Swiggy plans to open bigger dark stores in size as much as 8,000-10,000 sq ft, he said.
On the reported CCI probe against food delivery platforms including Swiggy for anti-competition practices, Majety said, “we are following laws and practices with complete compliance.”
A Competition Commission probe has found that food delivery platforms Zomato and Swiggy indulged in unfair business practices, including alleged preferential treatment to some restaurant partners, according to sources. (PTI)
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