Karan Johar, Rahul Dravid, Amitabh Bachchan, Madhuri Dixit invested in Swiggy.
What are you waiting for?
Me: “Meaningful information to take a call.”
Information 1: Swiggy IPO is a mix of fresh issue of equity shares totaling to ₹3,750 crore and an offer-for-sale of 18.52 crores equity shares by existing shareholders.
Meaning: Roughly 60% of IPO investors’ money will be used to give an exit to the VCs like such as Accel, Prosus, and Tencent. Only 40% will be used by the company for it's operations.
Information 2: Swiggy reduced its losses to ₹2,350 crore in FY 24, down 43% from last year.
Meaning: It's a loss-making company and looks like it will continue to be making losses for some more time.
Information 3: ₹559.1 crore of the fresh issue will be used for setting up dark stores
Meaning: It's betting big on quick commerce. As per THE KEN, Swiggy instamart is the slowest in delivery time and the average order value is almost the same as Zepto and BB Now. Blinkit is way ahead of it in all parameters. So somewhere needed there.
Summary: Pre IPO investing is generally a difficult call. It's got a 50:50 chance. I am sure there are good investing options available in the listed markets.
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