Swiggy, 2024’s biggest tech listing, falls below its IPO price and 2022 valuation

Indian food delivery company Swiggy’s stock fell below both its IPO price and its last private valuation as mounting losses and a wavering market position in quick commerce pressured its margins in the last quarter.

The food delivery company’s stock fell as low as ₹374.80 ($4.29) on Thursday below its November IPO price of ₹390, squeezing its market cap to $9.75 billion, before recovering slightly to around the IPO price level. The stock plummeted after Swiggy posted quarterly results this week, revealing that its quick-commerce business Instamart lost market share.

The market share declines came despite efforts to ramp up store expansion and marketing spending in an attempt to keep pace with a fast-growing number of rivals.

The stock market’s reaction marks a change in sentiment towards Swiggy, which posted the world’s largest tech IPO last year and earned a private valuation of $10.7 billion in early 2022. The share price decline is also notable compared to the stock’s mid-December peak of ₹617.

Meanwhile, competitor Zomato’s quick-commerce unit Blinkit recorded quarterly gross order value of ₹78 billion ($890 million), nearly double Instamart’s ₹39.1 billion ($446 million). On an annualized basis, Instamart’s gross order value of $1.8 billion significantly trailed both Blinkit’s order value of $3.7 billion and competitor Zepto’s $3 billion.