Swiggy has made a great plan
Swiggy, which works in the food delivery and express commerce (delivery in 10 minutes) segments, will soon launch its Rs 11,300 crore initial public offering. The company’s bet is greater in the fast commerce sector because companies like Zomato’s BlinkIt, Tata Group’s BigBasket Now and Zepto are already present in this sector. Mukesh Ambani is gearing up to play a big role in this with the help of his retail network. Therefore, the company has made many important changes even before the IPO, so the tension over Mukesh Ambani may increase more than before.
In fact, Reliance has the largest network of retail stores in the country. The company plans to use this supermarket network as a warehouse and origination center for rapid commercial delivery. However, 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 make this sector more competitive.
Modified funding allocation
Swiggy has made major changes in IPO fund raising and allocation to focus on the fast commerce sector. The company will now issue new shares worth Rs 4,499 crore in an initial public offering of Rs 11,300 crore. While earlier this figure was Rs 3,750 crore. The reason for this is that the company will now spend Rs 1,179 crore to expand in the quick commerce segment. This is a 20 percent larger allocation than their previous planning.
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Swiggy will not stop here. The company has now included not only rations or everyday items in its express business delivery but also premium items like smartphones, audio, power banks and delivery of gold coins on the occasion of Diwali.
Focus on improving technology from the dark store
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 will also increase the number of 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, Swiggy Instamart’s closest competitor, is 791, while Zepto has more than 500 stores.
