India’s leading food delivery platform, Swiggy, is gearing up for its much-anticipated IPO, potentially raising over USD 1 billion. Reports suggest that the Bengaluru-based company is set to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) soon, with the IPO expected to launch in the coming weeks. As Swiggy prepares for its public debut, the company has implemented several strategic changes.
One of the most significant changes has taken place within Swiggy’s quick commerce arm, Instamart. In a major leadership shift, Amitesh Jha, a seasoned executive from Flipkart, was appointed as the new CEO of Instamart. This marks the third leadership change for Instamart in 18 months, signaling the importance of this division in Swiggy’s future growth strategy. Jha’s appointment comes as Phani Kishan, the outgoing head of Instamart, takes on a broader role within the company, overseeing the Central Growth unit and working closely with Swiggy’s co-founder, Sriharsha Majety, on new initiatives.
Swiggy Instamart has aggressively expanded its reach, launching services in 11 new cities, including Rajkot, Thrissur, and Kanpur. This expansion marks a strategic push into Tier 2 and 3 cities, aiming to cater to a broader customer base beyond metropolitan areas. Instamart offers delivery of daily essentials in just 10 minutes, and the company has reported strong performance in these new regions. For instance, a store in Mangalore reached 1,000 orders in a single day, faster than many stores in larger cities.
Instamart’s localized approach, featuring partnerships with regional vendors, has boosted its appeal and operational efficiency in serving diverse customer needs. The company’s new CEO, Amitesh Jha, expressed optimism, stating that the demand from smaller towns has been “incredibly encouraging.”
Swiggy has also made several management changes before its IPO. Himavant Srikrishna Kurnala, formerly with Reliance Retail’s JioMart, was appointed as the head of product for Instamart. Other key hires include Mayank Rajvaidya, fruits and vegetables vice president, and Manu Sasidharan, associate vice president of the FMCG category. These appointments come amidst a broader effort to strengthen Swiggy’s leadership team in preparation for its public listing.
In August, Swiggy introduced a policy change affecting restaurant partners in non-metro areas. The company extended its gross value service fee policy, which includes GST and packaging fees, to restaurants in smaller towns. This move is part of Swiggy’s efforts to streamline its revenue model, aligning with service fees already applied in larger cities.
As part of its IPO preparation, Swiggy transitioned from a private limited company to a public limited entity, now known as Swiggy Limited. This strategic move positions the company for public investment, marking a significant step towards its stock market debut.
