Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Food delivery and quick-commerce behemoth Swiggy's initial public offering (IPO) closes for subscription today. The issue has already been subscribed about 213% as of 1:35 pm today. The offer garnered massive interest from QIB (qualified institutional buyers), who subscribed 3.46x to it, bidding for 30,09,09,954 shares as against 8,69,23,475 shares allotted for them. The company will tentatively list on both BSE and NSE on November 13, 2024. <br /><br /> Swiggy's employees also gave the IPO a thumbs-up, subscribing 1.42x to the offer. Around 7,50,000 shares were reserved for employees in the IPO, at a discount of Rs 25 to the issue price.<br /><br />On the other hand, retail investors subscribed to 99% of their potion. At the same time, the NII (non-institutional category) fetched a muted response, with investors subscribing to only 25% of shares in their category.<br /><br /><h2>Dull GMP</h2> Pre-IPO, Swiggy had also lapped up Rs 5,085 crore from anchor investors. With a price band of Rs 371-390, the company is looking to raise Rs 11,327 crore from the IPO. Out of this, the fresh issue component is worth Rs 4,499 crore, and the offer for sale (OFS) is Rs 6,828 crore.<br /><br /> Investors can expect dampened listing day gains, going by the trends in the GMP (grey market premium) market. The company's last-traded GMP was at a mere Rs 1, taking the estimated listing price to Rs 391 (upper end of the price band at Rs 390 + GMP), which means that the potential gain per share would be a minuscule 0.26%. <br /><br /> Per InCred Equities, the IPO can be subscribed to since the company has favorable scale and potential to tap in long-term opportunities. Quick commerce provides growth runaway, while the food delivery vertical has the potential to improve the margin and cash flow going ahead.<br /><br />Per the company's Q1FY25 earnings report, it generates 47% of revenue from the food delivery business and 39% from its supply chain and distribution business (operated via Scootsy Logistics Private Limited). About 12% of the company's revenue comes from its quick commerce wing i.e. Instamart, while Dineout (eating out) and platform innovations make up about 1% each of the revenue. <br /><br /> "Swiggy’s IPO price band implies 1) EV/revenue multiple of ~6.5x, 2) EV/GOV of ~2.1x, and 3) a P/S of ~6.7x based on annualized FY25F financials. The valuation is at a discount to Zomato, which trades at an EV/revenue multiple of ~11.3x, an EV/GOV of ~3.2x (annualized), and a P/S of ~11.4x based on FY25F consensus estimates. Internal controls, as reflected in the auditor’s qualified opinion, and increased competitive intensity are the key downside risks, in our view," InCred further adds.<br /><br />Notably, in FY23 and FY24, auditors raised concerns over loans given to subsidiaries, namely Supr Infotech and Scootsy which may impact Swiggy's overall financial stability. Some of the qualifications highlighted by the auditors  include potential impairment, interest payment delay, and using new loans to cover interest costs. <br /><br />

Swiggy IPO subscribed to 2.13 times on last day of the offer

The IPO (initial public offer) of food and grocery delivery behemoth Swiggy is set to open tomorrow and conclude on November 8, 2024. The entire issue is worth Rs 11,327.43 crore and has a fresh issue component of Rs 4,499 crore and an OFS (offer for sale) of about Rs 6,828.43 crore. With a price band of Rs 371-390, retail investors will be required to invest a minimum of Rs 14,820 to get their hands on Swiggy's shares. <br /><br /> Swiggy, which will tentatively list on the bourses on November 13, 2024, is seeking to raise Rs 1,952.43 crore more than its rival <keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword>, which went public in July 2021 and was looking to raise Rs 9,375 crore. Zomato's offer was oversubscribed around 38.25 times, with retail investors subscribing 7.45x to the issue. Notably, only around 15% of Swiggy's total issue will be made available to retail investors. <br /><br /> Moreover, Swiggy's IPO is not garnering the same buzz if its present GMP (<keyword id="938640" type="General" weightage="20" keywordseo="grey-market-premium" source="Orion">grey market premium</keyword>) trends are to be believed. The company's last traded GMP was Rs 7, taking its estimated listing price to Rs 397 (upper end of its price band, i.e., Rs 390 + Rs 7), and its potential listing gains per share at a minimal 1.79%. <br /><br /> Last week, Swiggy's GMP was at Rs 25, before tumbling to Rs 18, and then momentarily stabilizing at Rs 22 before its steep fall to present levels of Rs 7. <br /><br /> <h2>Strengths and weaknesses</h2> Since its inception in 2014, Swiggy's bottom line has been in red, unlike that of its rival Zomato, which turned profitable in the first quarter of FY24. <br /><br /> In FY22, its total income was Rs. 6119.78 crore with a net loss of Rs. 3628.90 crore. While the company's total income increased to Rs. 8714.45 crore in FY23, it also spelled a corresponding rise in its net losses, which surged to Rs. 4179.31 crore.<br /><br /> The trend varied a little in FY24 when Swiggy's total income rose to Rs 11,634.35 crore while its net loss reduced to Rs. 2,350.24 crore. However, in the first quarter of FY25, ending June 30, 2024, the company's total income stood at Rs 3,310.11 crore and a net loss of Rs. 611.01 crore.<br /><br /> While Swiggy did achieve 42.4% revenue growth between FY2022-223, most of its revenue is sourced from the top 50 of the 500 Indian cities it is currently operational in. Even in this regard, Zomato, which operates in around 1,000 cities across India, has an edge. <br /><br /> <h2>Some say invest, some say avoid</h2> Some experts are advising against subscribing to this IPO. Per SAMCO Securities, "As of FY 2024, Swiggy Limited continues to operate at a loss, in contrast to its competitor, Zomato Limited, which has recently achieved profitability. Given Swiggy’s current financial position, competitive pressures, associated risks, and valuation, its IPO appears overvalued. Therefore, investors should avoid this IPO until the company’s financial performance and growth outlook improve. Waiting until Swiggy demonstrates improved financial results and a clearer path to sustainable growth would be a more prudent investment approach.<br /><br />Per Bajaj Broking's IPO note, Swiggy's IPO can be subscribed to from a long-term perspective. However, it also highlights that Swiggy's offer document is missing PAT (profit after tax) and RoCE (returns on capital employed) data. <br /><br /> "For the last three fiscals, the company has reported an average EPS of Rs - (14.90) and an average RoNW of - (35.39%). The issue is priced at a P/BV of 11.60 based on its NAV of Rs. 33.61 as of June 30, 2024, and is at a P/BV of 7.31 based on its post-IPO NAV of Rs. 53.36 per share (at upper cap). If we attribute annualized FY25 earnings to a post-IPO fully diluted equity base, then the asking price is at a negative P/E, and based on FY24 earnings also, it is at a negative P/E, as the company has posted losses for those periods. On other parameters, the issue appears aggressively priced," it further adds. <br /><br /> Gaurav Garg, research analyst at Lemonn Markets Desk, notes that it might take some time for Swiggy to reach Zomato's level, both in terms of valuation and AOV (average order value). Swiggy's valuation has been pegged at about Rs 95,000 crore, at the upper price band, while Zomato has a market valuation of Rs 2.13 lakh crore.<br /><br /> "Almost 50% valuation compared to Zomato gives some comfort, although it should not be considered an arbitrage in valuation. If Swiggy’s EBITDA catches up to 3-4% in the food delivery business, which is currently at 1%, and Average Order Value (AOV) improves to Rs. 550-600 levels in quick commerce with a higher non-grocery share, we can see bridging in the valuation gap. However, this should not be expected in the near term," he adds.<br /><br />

Swiggy's IPO set to open tomorrow. Should you subscribe?

<keyword id="19896956" type="General" weightage="100" keywordseo="Swiggy" source="keywords" meta.keywordsubtype="org" meta.entityname="Swiggy" meta.hostid="261" meta.entityid="Swiggy">Swiggy</keyword> is a popular choice for Indians when it comes to getting food delivered. The company's founder recently revealed that the decade-old startup partners with over 3 lakh <keyword id="19980908" type="General" weightage="20" keywordseo="restaurants" source="keywords">restaurants</keyword> today. But were things always this bright with the <keyword id="20299302" type="General" weightage="20" keywordseo="food-delivery" source="keywords">food delivery</keyword> platform? Not really. On its first day, the company had 0 <keyword id="20198062" type="General" weightage="20" keywordseo="orders" source="keywords">orders</keyword>. <br /><br /><h2>Swiggy's journey through its founder's lens</h2>Founded in 2014, Swiggy started with modest aspirations. The company's co-founder and CEO Sriharsha Majety revealed the startup's journey in a LinkedIn post recently as Swiggy marked its 10th anniversary. Majety reminisced about the humble beginnings when the concept of food delivery was still new in India. “When we launched Swiggy on August 6, 2014, we ended the day with zero orders. The next day, we received our first-ever order, marking the true beginning of our journey,” he wrote, recalling how the company's journey started with just one order.<br /><br />One of the first restaurants to partner with Swiggy was Truffles, a well-known eatery in Bangalore, which began with just two daily orders on the platform. Today, Swiggy’s network has grown exponentially, boasting partnerships with over 300,000 restaurants across the country. <br /><br />Majety also expressed deep gratitude to the early partners who believed in Swiggy’s vision when the concept of on-demand food delivery was still in its infancy. He acknowledged that these early collaborators were more than just business partners; they were integral to Swiggy’s foundation and its evolution into the industry leader it is today. “Their trust and partnership have been invaluable, and they are like core founding team members who helped create food delivery in India as we know it today,” he wrote in the LinkedIn post, highlighting the importance of collaboration in the company’s success.<br /><br /><h2>Swiggy's stock market debut</h2>As Swiggy celebrates this significant milestone, it does so on the cusp of another major event: its anticipated stock market debut. With <keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword>, its primary competitor, already listed, Swiggy’s entry into the stock market is eagerly awaited. Speaking at the Moneycontrol Startup Conclave, Majety had reflected on the implications of having a listed competitor. He noted the advantages, such as not needing to explain the fundamentals of the on-demand economy, as well as the challenges, particularly the inevitable comparisons that will arise with each quarterly performance report. <br /><br />As of April 2024, Swiggy has achieved a valuation of USD 12.7 billion, a figure that underscores the company’s impressive growth trajectory over the past decade. Thus, from its beginnings with a single order to becoming a leading player in India’s food delivery market, Swiggy’s journey is an inspiration for all startup founders out there. <br />

Swiggy co-founder reveals the company had 0 orders on day 1, now it has over 3 lakh partners

In 2024, grocery shopping is a thing of the past in India. Delivery platforms like <keyword id="19939135" type="General" weightage="20" keywordseo="Swiggy-Instamart" source="keywords">Swiggy Instamart</keyword>, <keyword id="20069203" type="General" weightage="20" keywordseo="Blinkit" source="keywords" meta.keywordsubtype="org" meta.entityname="Blinkit" meta.hostid="261" meta.entityid="Blinkit">Blinkit</keyword> and <keyword id="19939134" type="General" weightage="20" keywordseo="Zepto" source="keywords" meta.keywordsubtype="org" meta.entityname="Zepto" meta.hostid="261" meta.entityid="Zepto">Zepto</keyword> have made life easier for millions of people by delivering regular household items at their doorsteps. Ran out of salt? Order it online. Ran out of flour? Order it online. Need some stationery items for your kid’s school project? It can be delivered too. The list is endless. <br /><br /><h2><keyword id="21384253" type="General" weightage="100" keywordseo="Zepto-CEO" source="keywords">Zepto CEO</keyword> compares it with Zomato</h2> Zepto, which is newer when compared to Swiggy and Blinkit, is a popular choice in many areas. And its CEO and co-founder <keyword id="22736526" type="General" weightage="20" keywordseo="Aadit-Palica" source="keywords">Aadit Palica</keyword> feels that the company is in the stage where <keyword id="19904608" type="General" weightage="20" keywordseo="Amazon" source="keywords" meta.keywordsubtype="org" meta.entityname="Amazon" meta.hostid="261" meta.entityid="Amazon">Amazon</keyword> was in 1990s or early 2000s. While speaking at the Moneycontrol Startup Conclave 2024 on Friday, Palicha drew a bold comparison between his company’s current trajectory and that of Amazon during the late 1990s and early 2000s. He added that with the right execution, Zepto could potentially achieve a valuation between $50 billion and $80 billion, positioning itself as a leader in the global quick commerce sector.<br /><br /> With that being said, Palicha is keenly aware that success isn’t guaranteed. “It is largely just execution,” he noted, talking about the importance of flawless operational strategy in turning potential into reality. He also acknowledged the history of companies that had the right ingredients for success but failed to execute, highlighting Zepto’s commitment to staying focused on its core business for the foreseeable future.<br /><br /> Over the past year, Zepto has been on an aggressive fundraising streak, securing significant investments that have fuelled its growth. In August 2023, Zepto raised $231 million at a valuation of $1.4 billion, marking its entry into the unicorn club. But that was just the beginning. The startup recently closed another funding round, pulling in $665 million and boosting its valuation to $3.6 billion. <br /><br /> The momentum doesn’t stop there. Zepto has attracted further interest from investors, with discussions underway for an additional $250 million in funding. This new round, which could grow to as much as $400 million, is expected to push the company’s valuation to around $4.6 billion.<br /><br /><h2>When Palicha said Zepto will be bigger than D-Mart </h2> This isn’t the first time that Palicha has made a bold prediction about Zepto. Last month, Palicha had said that Zepto would be bigger than D-Mart in the near future. Speaking at the JIIF Foundation Day event in Delhi, Palicha had pointed out that despite D-Mart’s impressive $30 billion valuation, the retail behemoth is currently only 4.5 times larger than Zepto in terms of sales. <br /><br /> "D-Mart is a $30 billion company, and they are only 4.5 times our size in sales. If we maintain our current pace, growing 2-3 times each year, we could potentially surpass them in the next 18-24 months," Palicha had said.<br /><br />

Zepto CEO compares his startup to Amazon, says it can be worth 80 billion if things go right

<ul><li><strong><keyword id="6358977" type="UNKNOWN" weightage="20" keywordseo="swiggy">Swiggy</keyword> may be announcing new service called '<keyword id="207100" type="PERSON" weightage="20" keywordseo="Dash">Dash</keyword>'.</strong></li><li><strong>Reports say the company will deliver groceries and medicines to users.</strong></li></ul>Swiggy may <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/swiggy-looks-to-bring-medicines-groceries-to-you/articleshow/63919179.cms" data-type="tilCustomLink">soon be announcing</a> a service called ‘Dash’, under which the company will deliver grocery and medicines. The venture might help optimise the costs of running their fleet of delivery vehicles.<br /><br />A source told <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/swiggy-looks-to-bring-medicines-groceries-to-you/articleshow/63919179.cms">Economic Times</a>, “While several categories have been discussed, they may start with medicines and then on to groceries.” Not only will such an endeavor diversify Swiggy’s portfolio, but the move is also aimed a boosting delivery volumes.<br /><br />If volume is the keyword, then Meituan-Dianping probably had a part to play in this decision. As a key investor in Swiggy, it can be reasonably assumed that they’re looking to apply their business model from China to Swiggy’s India operations. It includes offering deliveries and services across numerous categories, including groceries, cabs, personal services and payments. <br /><br />Swiggy currently has a workforce of approximately 30,000 delivery personnel and they plan on maximising their output by increasing the avenues for delivery. Their focus is going to be on afternoons, particularly between 2pm and 6pm. According to reports, ‘Dash’ should be live in the next couple of months. <br /><br />The move comes at a time when Swiggy is in conversation with Coatue Management and DST Global, both global investment companies, to raise $200 million. The influx of resources has the potential to increase Swiggy’s valuation to over $1 billion. <br /><br />Statistics suggest that Swiggy already handles over 7 million orders each month across 35,000 restaurants. In comparison, Zomato claimed that they crossed the 5.5 million mark in India and the UAE last month.<br /><br /><br />This isn’t a new trend. Not in terms of businesses diversifying or even <keyword id="6376068" type="UNKNOWN" weightage="20" keywordseo="food-delivery">food delivery</keyword> services specifically. Globally, services like DoorDash have transformed from being an on-demand restaurant delivery service to integrating grocery deliveries in partnership with retail giants like Walmart. <br /><br />Uber is another example. The company diversified from being a cab service to launching UberEats, a food delivery app. <b><br /></b>

Swiggy may start delivering other items soon

<ul><li>The rebranding was a part of its plan to make users aware that <keyword id="2466939" type="General" weightage="20" keywordseo="grofers" source="Orion">Grofers</keyword> goes beyond grocery delivery.</li><li>“We just found a name that we liked a lot,” Dhindsa said while referring to the trigger point of this rebranding.</li><li>Grofers was valued over a billion dollars in August this year, after it raised about $100 million from Zomato.</li></ul>“We were doing it [rebranding and focusing on faster delivery] out of the mind that we either out-innovate [sic] ourselves, or we will become redundant,” founder and chief executive Albinder Dhindsa told Business Insider.<br /><br />This why the company rushed with its rebranding exercise ⁠— changing the name of the company to Blinkit ⁠— taking it live within a week of deciding the name. <br /><br />Five years after it gave <a href="https://www.businessinsider.in/business/startups/news/after-giving-up-on-90-minute-delivery-five-years-ago-due-to-lack-of-profitability-grofers-is-now-chasing-10-minute-delivery/articleshow/88253221.cms">up on 90-minute deliveries</a> because of bad unit economics and lack of profitability, Grofers rushed to give itself a makeover to show that it can do really fast deliveries. <br /><br />So, what has changed in the last five years? Dhindsa believes that there are a lot more customers shopping for groceries online and so, even the smaller shopkeepers are ready to deliver for online orders. “Local partners and stores are much more willing to join the ecommerce revolution and really want to be a part of newage and technology businesses,” he noted. <br /><br />And it’s not just Grofers, but even food delivery app Swiggy, quick delivery specialists Dunzo and Zepto have also pumped in big money into quick commerce. Tata Digital-owned BigBasket, which is Grofers’ biggest rival, also plans to enter this segment with a <a href="https://economictimes.indiatimes.com/tech/startups/bigbasket-jumps-into-buzzy-quick-delivery-segment-will-bring-all-grocery-services-in-one-app/articleshow/87896466.cms">10-20 minute</a> delivery option. Meanwhile, Reliance Industries is chasing Dunzo for an investment opportunity, probably for its groceries and ecommerce business <keyword id="8506093" type="General" weightage="20" keywordseo="jiomart" source="Orion">JioMart</keyword>. <br /><br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Money invested into these companies in 2021<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Swiggy<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$800 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dunzo<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$8.3 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zepto<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$60 million<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Grofers<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$120 million<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Media reports, company announcements<br />Dhindsa may be hoping that this pivot to instant deliveries will end the cycle of losses. “...this is a better business and a stronger business for us to be able to build and capture this opportunity,” he added. <br /><br />                <div type="image" title="Grofers founder explains why he rushed to rebrand the startup and his plans seem ambitious" msid="88320680" hostid="261"></div><br />However, aside from being rushed, the challenges are going to be immense.<br /><br />Google-backed Dunzo, which is an early mover into the quick delivery space offers limited product options to their customers. Zepto — <a href="https://www.businessinsider.in/business/startups/news/this-six-month-old-startup-is-nearing-google-backed-dunzos-valuation-by-delivering-groceries-in-10-mins/articleshow/87457816.cms">founded six months ago by two 19-year-old Stanford dropouts</a> — has also found its model to deliver products in 10 minutes on the back of limited products, which has helped it achieve a $250 million valuation.<br /><br />But Grofers wants to sell a much larger product line. Everything from ice cream to poncho for winters will be delivered by Blinkit, Dhindsa added. Globally quick commerce players have fewer stock keeping units (SKU), between <a href="https://coresight.com/research/from-quick-commerce-to-instant-needs-exploring-business-models-in-rapid-delivery/">1,000 and 3000 products</a>, Grofers is chasing 4000-7000 SKUs, which can put a strain on its operations.<br /><br />“Customers expect us to have more things, not less. And they want faster delivery, not slower. So we don't have a business model, we are just obsessed with the customers,” is Dhindsa's defence. <br /><br />So, he is not cutting back on the inventory. And he wants to serve 30 cities through 1000 stores by the middle of next year. It is currently executing its 10-minute delivery in 12 cities through over 250 stores and plans to take this number to 530 stores by next month. Is it really enough? <br /><br />In comparison, Dunzo has over 11,000 merchants listed on its platform across 8 cities.<br /><br />A chief executive of a firm in the quick commerce space, on the condition of anonymity, told Business Insider that 540 stories across 12 cities would not be enough to carry out 10-minute deliveries. Besides this, the larger SKUs of over 5000 is not feasible, the executive added.<br /><br />“We did some maths on our end to do 10-minute delivery in a city like Bangalore [Bengaluru], you will need close to 80-90 stores. If you have to deliver in Delhi [under 10 minutes], you would need around 300-400 stores. But maybe they [Grofers] are not operating everywhere, they are only offering 10-minute delivery to places with dense localities,” the person added. <br /><br />                <div type="image" title="Grofers founder explains why he rushed to rebrand the startup and his plans seem ambitious" msid="88320698" hostid="261"></div><br />Grofers, now Blinkit, was founded in 2013 by Albinder Dhindsa and Saurabh Kumar. <br /><br />It was valued over a billion dollars in August this year, after it raised about <a href="https://economictimes.indiatimes.com/tech/startups/cci-approves-zomatos-100-million-investment-in-grofers/articleshow/85301775.cms?from=mdr">$120 million </a>from food aggregator business Zomato and Tiger Global. According to media reports, Zomato was in talks to acquire Grofers last year, but the talks reportedly didn’t fructify. Instead of an acquisition, Zomato went ahead with investing in Grofers to boost its grocery delivery ambition.<br /><br />The company has raised around $800 million in funding to date, as per Crunchbase. It counts SoftBank, Bennett Coleman and Co., and KTB Ventures as its investors. <br /><br />Disclosure: Business Insider India is a partner of Times Internet, which is a subsidiary of Bennett Coleman and Co.<br /><strong><br />SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/startups/news/ola-raises-half-a-billion-dollars-in-debt-to-fuel-its-food-delivery-and-quick-commerce-dream/articleshow/88314624.cms" data-type="tilCustomLink">Ola raises half a billion dollars in debt to fuel its food delivery and quick commerce dream</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/supriya-lifescience-ipo-analysts-bet-to-subscribe-on-its-diversified-product-portfolio/articleshow/88314011.cms" data-type="tilCustomLink">Analysts suggest subscribing to this pharma company IPO on discounted valuation and strong product portfolio than peers</a><br /><br /><a href="https://www.businessinsider.in/business/startups/news/sharechats-valuation-increased-by-another-billion-with-266-million-funding/articleshow/88314721.cms" data-type="tilCustomLink">ShareChat's valuation increases by a billion with a fresh $266 million funding round</a><br />

INTERVIEW: Grofers founder explains why he rushed to rebrand the startup and his plans seem ambitious

<ul><li><keyword id="2808667" type="PERSON" weightage="20" keywordseo="OYO">OYO</keyword>’s losses for the last financial year rose six fold of ₹2384.7 crores. </li><li>The company’s valuation has doubled between September 2018 and October 2019.</li><li>The boost in valuation largely came from the founder buying back shares at an increased price from existing investors.</li></ul>Indian hospitality unicorn OYO, backed by Japanese billionaire Masayoshi Son’s Softbank Vision Fund, is piling up losses. Yet, its valuation continues to soar. <br /><br />A valuation <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/softbanks-oyo-reveals-over-330-mln-annual-loss-revenue-surges-valuation-report/articleshow/72226878.cms">report</a> sourced on OYO’s financials show that the company has reported a loss of ₹2,384.7 crore, almost six times higher than its losses a year earlier. Meanwhile, its operating revenue grew three-fold to ₹6456.9 crore. Whereas the company’s valuation has doubled to $10 billion between September 2018 and now.<br /><br />The magical boost in valuation came from the $700 million invested by founder and CEO <keyword id="1670338" type="PERSON" weightage="20" keywordseo="Ritesh-Agarwal">Ritesh Agarwal</keyword> in October 2019. The money went into buying back shares from existing investors at a higher price, boosting the company’s value. As the iconic investor Warren Buffett famously said, “Price is what you pay, value is what you get.” Agarwal definitely got more value out of the transaction than what he paid for.<br /><br />
  
  
  
  
  
  
  
  
  



















  <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[
<div class="flourish-embed" data-src="visualisation/1007245"></div>
]]></cdata></div>



<br />A year ago, OYO had raised over $1 billion, led by SoftBank through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital and supported by new strategic partners like Airbnb.<br /><br />The piling losses can be attributed to the company’s aggressive expansion to China, South-East Asia, Japan, and then the US. The numbers are alarming for OYO, which <a href="https://inc42.com/buzz/oyo-projects-profitability-by-2022-after-3-9x-higher-losses-in-fy19/">reportedly</a> wants to turn hit profitable by 2022. <br /><br />But the company has gone on the defensive. “These are not the final audited financials and the same will be issued later by the company along with the annual report that we issue every year and file with the RoC as well,” OYO spokesperson told Business Insider. <br /><br />Many <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/after-wework-softbanks-startup-accounting-model-under-fire-oyo-raises-eyebrows/articleshow/72234413.cms">naysayers</a> even predicted a WeWork-like phenomena for SoftBank’s next big celebrated investment – OYO. <br /><br />What started as a hotel room aggregator, OYO has gone on to buy @Leisure Group, an Amsterdam-based vacation rental company, for an estimated $407 million, Hooters Casino in Las Vegas for $135 million, and an 80% stake in Japanese rental apartment operator MDI, along with SoftBank, <a href="https://asia.nikkei.com/Opinion/Oyo-s-business-model-is-looking-a-lot-like-WeWork-s">which reportedly cost over</a> $100 million. <br /><br />Even if the comparison with beleaguered WeWork ⁠— whose valuation had to be written down by $39 billion for Softbank after the founder’s misdeeds came to light ⁠— may seem a bit stretched at this point, investors will do well to remember this warning from Warren Buffet, who said, “ If you buy things you do not need, soon you will have to sell things you need.”<br /><br /><strong>See Also:</strong><br /><a href="https://www.businessinsider.in/business/startups/news/oyo-zomato-amazon-and-flipkart-are-in-trouble/articleshow/72235917.cms">Oyo, Zomato, Amazon, and Flipkart are chasing growth but the very foundation is shaking</a><br /><a href="https://www.businessinsider.in/business/startups/news/saif-partners-investment-thesis-funding-in-unicorn-startups-swiggy-paytm/articleshow/71932586.cms">SAIF Partners invested in Swiggy when they just had a landing page – today they are going after more seed stage startups, here’s why</a><br />

You Searched For "Swiggy valuation comparison" and got 7 results

Swiggy IPO subscribed to 2.13 times on last day of the offer

Ira Alok Puranik

Swiggy's IPO set to open tomorrow. Should you subscribe?

Ira Alok Puranik

Swiggy co-founder reveals the company had 0 orders on day 1, now it has over 3 lakh partners

Divyanshi Sharma

Zepto CEO compares his startup to Amazon, says it can be worth 80 billion if things go right

Divyanshi Sharma

Swiggy may start delivering other items soon

Prabhjote Gill

INTERVIEW: Grofers founder explains why he rushed to rebrand the startup and his plans seem ambitious

Kritti Bhalla

Bizarre! The more losses Oyo makes, the more valuable it gets

Sanchita Dash

Popular Keywords

Buying Guides