BENGALURU: Quick commerce is the hottest category with its fast growth, large TAM (total addressable market), as the category can be $30-$50 billion in four years, supported by strong CAGR, said Swiggy co-founder and group CEO Sriharsha Majety.
Ahead of the company’s IPO, to be open for subscription from Wednesday, Majety told reporters here that quick commerce is a generational opportunity that we have in front of us. “Consumer preferences, needs and wants, everything is getting developed and emerging as we go into the next phase of quick commerce,” he said. Launched in August 2020, quick commerce platform Swiggy Instamart is present in 43 cities, and it brings groceries and other daily essentials in 10-15 minutes.
Talking about growth opportunities of quick commerce in tier-2, 3 and 4 cities, the co-founder said they are already in over 30 cities and they have a lot more depth. “Each new city gives feedback in terms of how many people we can go and at this point we believe that there is reasonable headroom,” he said.
Food delivery is a mature business now and in the run-up to the IPO, a lot of questions came out of curiosity from investors about quick commerce. The Majety said questions from investors were about the market structure, how many players are going to be in the space and how a path to profitability can be found in this category.
The company’s CFO Rahul Bothra said India is leading the way in quick commerce showing globally how this could be done. On the food delivery business, Majety said it is at a meaningful scale today and the category is expected to grow to about 20% CAGR. “We think that it will continue in that zip code for a long time to come,” he said, adding that they are thinking about a world where there are 100 million consumers using the platform 15 times a month. “It’s like a rallying cry for us and a vision that we go after,” he said.
Swiggy IPO price band has been set up at Rs 371-390 a share. In the first quarter of FY25, the company recorded a total income of Rs 3,310 crore and a net loss of Rs 611 crore.