Food delivery app Swiggy on Wednesday launched a Rs 11,330-crore initial share sale, asking investors to take a pie of Indian middle class’ rising propensity of online ordering.
The company, which is present in over 650 cities and towns of the country, is launching the initial public offering (IPO) amid heightened concerns on urban demand slump, and the management stressed that it is unaffected by the broader trends in the economy.
“We are also reading about it, but we are not seeing that yet in the business… So far, we have not seen the impact of demand on our business,” its chief financial officer Rahul Bothra said.
The issue comes amid a series of IPOs in the recent past including South Korean car maker Hyundai’s mega Rs 28,000-crore issue. It will make Swiggy the second major food delivery app after Zomato to go public.
Bothra said it is possible that the company which claims to have 14 million users serves only a small part of the consumer base, unlike fast moving consumer .
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