Swiggy, one of India’s leading food delivery platforms, marked a strong entrance on the National Stock Exchange (NSE) on Wednesday, November 13, with shares opening at ₹420, achieving a 7.69% premium over its IPO price. In an impressive surge, the stock reached an intraday high of ₹449, reflecting a 15.12% rise, surpassing prior market expectations. Despite a cautious outlook in the grey market, where Swiggy's IPO initially projected a flat debut, the company has already exceeded predictions and gained significant investor attention.

SoftBank's Role in Swiggy's Growth and Market Entry

As the largest institutional backer, SoftBank’s first venture into India’s food delivery space demonstrated its strategic long-term vision. In an exclusive interview, Sumer Juneja, Managing Partner and Head of EMEA & India Investing at SoftBank, noted the challenges and opportunities surrounding Swiggy’s listing, especially given recent market turbulence. "We’re all breathing a sigh of relief now that the stock is up 10-12%, but it hasn’t been easy," Juneja remarked, alluding to the meticulous planning that went into the IPO.

The stock's upward movement today is attributed to Swiggy's carefully priced IPO and strong investor interest. Juneja highlighted the strategic pricing that ensured a “high-quality book with a balanced mix of domestic and foreign investors who understood the long-term story.” This approach has allowed SoftBank to avoid short-term selling pressure often seen in IPOs, with investors looking beyond day-one profits.

Investor Confidence and SoftBank’s Long-Term Commitment

SoftBank decided not to sell any of its shares during Swiggy’s listing, signaling confidence in the company’s trajectory. Juneja noted, "Opportunities like Swiggy don’t come around often," referencing Swiggy’s potential across both food delivery and grocery segments, especially through its Instamart division, which has become increasingly popular amid India’s shift towards online grocery shopping. With a rising urban population and increasing disposable incomes in India, Swiggy’s product-market fit is exceptionally robust, offering growth potential that is hard to replicate.

SoftBank's restraint from participating in the Offer for Sale (OFS) demonstrates its confidence in the long-term growth potential of Swiggy. This decision contrasts with previous IPOs, where SoftBank exited its investments more rapidly, such as in Paytm. By focusing on holding onto its shares, SoftBank has underscored its commitment to Swiggy’s future, placing it alongside other high-performing investments in India, such as FirstCry and Ola Electric.

Swiggy’s Strategic Growth and Leadership Vision

Beyond market performance, Swiggy’s success is heavily influenced by its strategic leadership. Juneja credited Swiggy CEO Harsha Majety as a key figure behind the company’s growth. "Harsha has made money for investors throughout his career," he noted, underscoring Majety’s commitment to long-term growth over short-term gains. This philosophy aligns with SoftBank’s investment principles and highlights Swiggy’s focus on sustainable growth, which investors find reassuring.

Majety’s leadership and SoftBank’s support have fostered Swiggy’s strategic expansion into grocery delivery through Instamart, which has quickly captured a substantial market share. As more of India’s population turns to digital solutions for everyday needs, Swiggy is uniquely positioned to capitalize on both food and grocery delivery, with long-term profitability in sight.

SoftBank’s Impact on the Indian Startup Ecosystem

SoftBank’s investments in Swiggy, FirstCry, and Ola Electric highlight its significant influence on India’s startup ecosystem. With the turnaround in SoftBank’s FY25 second-quarter results, which reported a profit of 1.2 trillion yen ($7.7 billion), SoftBank’s India-based investments, including Swiggy, are increasingly seen as pivotal contributors. Its $400 million investment in FirstCry and $600 million in Ola Electric have each appreciated beyond the billion-dollar mark, showcasing SoftBank’s ability to identify high-potential ventures that can yield substantial returns.

Reflecting on past experiences, particularly with Paytm’s IPO, Juneja stated, “When you’ve seen stocks not do well in the past, the conversation with founders about pricing becomes easier.” This careful pricing strategy reflects SoftBank’s shift toward more sustainable, long-term investments, ensuring that companies entering the market are positioned for future stability and growth.

Swiggy’s successful listing has sparked optimism among investors and stakeholders, indicating that well-planned entries into the public market can perform well despite broader economic uncertainties. With SoftBank’s sustained support and Swiggy’s commitment to innovation and expansion, the company’s trajectory in India's rapidly growing food delivery and grocery sectors looks promising.

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This historic listing has positioned Swiggy not only as a leader in India's food delivery industry but also as a key player in the country’s evolving digital economy.