debut – Doz World Matter

Food delivery giant Swiggy has reported its financial results for the second quarter of fiscal year 2024-25 (Q2FY25), its first post a successful public market debutsuccessful public market debut. For the second quarter of the fiscal year, the company narrowed its consolidated net loss to ₹625.5 crore, a modest improvement from the ₹657 crore loss reported during the same quarter last year. However, the company’s losses widened sequentially compared to the ₹611 crore loss posted in Q1FY25.

Swiggy’s revenue for the period clocked a strong year-on-year increase, amounting to ₹3,601 crore, up from ₹2,763 crore during Q2FY24. Despite the increase in revenue, Swiggy’s expenses also surged, reaching ₹4,309 crore for the quarter, marking an increase from ₹3,506 crore in Q2FY24. This rise in expenditure is largely attributed to investments in expanding its infrastructure, scaling operations, and enhancing its logistics network.

One of the key indicators of Swiggy’s growing presence in the market is its Gross Order Value (GOV), which measures the total customer spending on the platform. In Q2FY25, the company reported a 30% year-on-year increase in GOV, reaching ₹11,306 crore for the quarter. The company’s food delivery business also clocked an annual growth of 5.6%, while its adjusted EBITDA profitability now amounts to ₹112 crore.

Similarly, the firm clocked a growth in its user base, particularly its Monthly Transacting Users (MTU). The company reported a 19.2% year-on-year increase in MTUs, reaching 17.1 million by the end of the quarter. In addition to increasing its customer base, Swiggy is focusing on strengthening its logistics capabilities. The company’s board has approved an investment of up to ₹1,600 crore in its subsidiary, Scootsy Logistics Pvt Ltd, to enhance its supply chain infrastructure.

In addition to this, the company’s quick commerce platform, Instamart, has emerged as a significant growth driver for the period. Instamart delivers groceries and household essentials in minutes, and witnessed a strong performance in Q2FY25. The platform’s GOV grew by 24% on a quarter-on-quarter basis, reaching ₹3,382 crore, while it experienced a rise of 21% in orders compared to the previous quarter. The average daily orders per dark store, which serves as a critical metric for quick commerce platforms, also grew by 10%. “Our Quick Commerce offering grew 24% QoQ with losses lowered by 124 bps as the contribution margin stood at -1.9% down from -3.2% in Q1. We crossed the 50 city milestone this quarter. As of today, Swiggy Instamart is live in 54 cities,” Swiggy announced in a post on LinkedIn.

“The remarkable performance of our food business operations comes on the back of strong innovation and execution. We are constantly trying to anticipate and improve the consumer’s experience. The recent launch of Bolt- our 10-minute delivery service is an example of that. Similarly in quick commerce, we are anticipating and responding to consumer behaviour to bring more and more convenience to urban households. Instamart today is present in 54 cities and delivers more than 32,000 unique items, within an average delivery time of 13 minutes,” Sriharsha Majety, MD & Group CEO, Swiggy, announced in a press release.

India’s tech IPO boom continues with another overwhelming debut of One MobiKwik Systems Ltd., commonly known as MobiKwik, as shares soared 85% on the first day of trading. During the opening day, the Gurgaon-headquartered fintech company’s shares cross ₹500 mark, surpassing a market value of $464 million. In fact, the stock began trading at ₹440, which reflects a significant 57.71% premium compared to the issue price of ₹279.

Speaking about details, shares of the company were listed on the Bombay Stock Exchange (BSE) at Rs 442.25, a 58.51% premium compared to the issue price of Rs 279. Meanwhile, on the National Stock Exchange (NSE), the fintech firm listed at Rs 440 per share, reflecting a 57.71% premium. At the time of writing this article, MobiKwik’s stock touched an intraday high of ₹525 per share on NSE.

MobiKwik IPO debut

This comes after MobiKwik – founded in 2009 – drew interest from all investor categories for its IPO as Retail individual investors (RIIs) oversubscribed their allocated shares 134.67 times. Meanwhile, the IPO also garnered notable interest from Non-institutional investors (NIIs) subscribing 108.95 times their quota. And the Qualified Institutional Buyers (QIBs) category alone saw a subscription of almost 120 times. In this IPO, there was no offer-for-sale (OFS) component.

The company’s success echoes the rapid growth of the country’s digital payment market. A PwC report, citing industry experts’ forecasts, suggests that transaction values will increase from 265 trillion rupees in 2023-24 to 593 trillion rupees by 2028-29. This year, the fintech sector’s rapid growth unfolded alongside a significant rise in IPO activity in India, with over 300 companies raising nearly $18 billion in funding this year so far.

India’s IPO market defies global trends

Coming to the booming IPO market in the country, an exciting list of upcoming IPOs, including LG India, PayU, Flipkart, and more, is generating significant anticipation. Recently, Google parent Alphabet-backed Aye Finance has also filed its Draft Red Herring Prospectus (DRHP) with SEBI to raise $171 million through an IPO. Another fresh example of a thriving IPO scenario was seen today, as alongside MobiKwik, another Indian company made its debut in the stock market. Yes! we are talking about the well-known budget retailer Vishal Mega Mart, whose stock surged 41% in its debut trade on Wednesday, giving it a valuation of $5.8 billion.

If we talk about the company itself, co-founded by Bipin Preet Singh and Upasana Taku, MobiKwik clocked a growth in its operating revenue, around ₹342.2 crore, during the first quarter of FY25 along with a net loss of ₹6.6 crore for the same period. With major players like Paytm, PhonePe, and Google Pay dominating the sector, MobiKwik has leveraged its digital payments, buy-now-pay-later (BNPL) offering, and payment gateway solution, actively targeting underserved regions, with 72% of digital loans being disbursed in Tier 3 cities and beyond.

MobiKwik IPO debut

India’s IPO market defies global trends

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