Swiggy's next BIG step, set to challenge Mukesh Ambani in…

The popular food and grocery delivery service Swiggy is changing its approach in advance of its Rs 11,300 crore IPO. With a greater emphasis on quick commerce, the company has submitted its Red Herring Prospectus (RHP) to the Securities and Exchange Board of India (SEBI). In a retail market that is changing quickly, Swiggy's Rs 11,300 crore IPO is a big step forward. The business now faces competition from Blinkit, Zepto, and Mukesh Ambani's Reliance.

Swiggy has raised its goal for fresh capital issues from Rs 3,750 crore to Rs 4,499 crore as part of its IPO ambitions. A sizeable amount of this increased investment—Rs 1,179 crore, or 20% more than originally anticipated—will go to Swiggy's rapid commerce division, Instamart. This change in strategy demonstrates the company's goal to increase its market share in India, where internet-savvy people are increasingly using online platforms for necessities, and the rapidly expanding ultra-fast delivery sector.

The competition has increased as Reliance recently entered the rapid commerce market. Similar to the quick service criteria set by Swiggy and Blinkit, Reliance is establishing hubs that can fulfil the delivery promise of 10 to 30 minutes using its vast retail network. Investor trust in the industry is demonstrated by Zepto, a competitor with more than 500 dark shopfronts, which just raised $150 million in new capital. Swiggy's increased investment in rapid commerce demonstrates a proactive approach to stay ahead in this competitive climate, while Reliance's arrival further intensifies the race.

The main focus of Swiggy's approach is growing its network of dark stores, which are establishments created specifically to swiftly handle internet purchases. Swiggy plans to invest Rs 423.3 crore to lease and licence new locations and Rs 755.4 crore to expand the number of dark stores, as stated in its red herring prospectus (RHP). With this investment, Swiggy hopes to increase the number of its dark stores to 741, totalling about 2.59 million square feet. In contrast, Blinkit has increased the number of its dark stores to 791, demonstrating the intense competition for local fulfilment networks in order to satisfy the rising demand.