Swiggy is preparing for an IPO of Rs 10,000 crore, which will be India’s largest by a new-age business since Paytm. Swiggy’s ambition to enter the Street marks a new chapter for the Bengaluru-based business, which aims to dominate India’s fast developing quick commerce market.
The company is soliciting cash not only to expand its meal delivery operation, but also to support the growth of its rapid commerce unit, Instamart. With Zomato well-positioned in the game following its acquisition of Blinkit, competition is expected to heat up as Swiggy attempts to strengthen its presence in the public market with more money in its pocket.
As rapid commerce grows, it is gradually eroding India’s traditional kirana businesses, which number over 12 million and have long been the backbone of neighborhood retail. Platforms such as Blinkit, Instamart, Zepto, and Big Basket are now delivering competitive pricing, often 10% to 15% lower than local stores, encouraging customers to change their food buying habits. According to Sahil Barua, CEO of Delhivery, rapid commerce mostly affects kirana retailers, not e-commerce or direct-to-consumer firms.
