Swiggy, which works in the food delivery and quick commerce (10 minutes delivery) segments, is going to launch its IPO of Rs 11,300 crore soon. The company's bet is biggest on the quick commerce sector because companies like Zomato's BlinkIt, Tata Group's BigBasket Now and Zepto are already in the field in this sector. Mukesh Ambani is preparing to play a big innings in this with the help of his retail network. Therefore, the company has made many major changes even before the IPO, due to which the tension for Mukesh Ambani may increase more than before.
In fact, Reliance has the largest network of retail stores in the country. The company is planning to use this supermarket network as a warehouse and source hub for quick commerce delivery. Nevertheless, it is still far behind platforms like BlinkIt, Zepto and BigBasket Now in this segment. Now, the changes made by Swiggy through its IPO will help in making this sector more competitive.
Swiggy has made major changes in the fund collection and allocation of IPO to focus on the quick commerce sector. Now the company will issue new shares worth Rs 4,499 crore in an IPO of Rs 11,300 crore. Whereas earlier this figure was Rs 3,750 crore. The reason for this is that the company will now spend Rs 1,179 crore for expansion in the quick commerce segment. This is 20 percent more allocation than its previous planning.
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Swiggy is not going to stop here. The company has now included not only ration or everyday items in its quick commerce delivery but also premium items like smartphones, audio, power banks as well as delivery of gold coins on the occasion of Diwali.
To gain an edge over other companies, Swiggy has also set a target of investing Rs 703.4 crore to improve its technology. The company will improve its cloud infrastructure and logistics optimization.
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The company is also going to increase the number of its dark stores. The company has set a target of directly investing Rs 755.4 crore for this. With this the number of its dark stores will increase to 741. The number of dark stores of Blinkit, the closest competitor of Swiggy Instamart, is 791, while Zepto has more than 500 stores.
