Swiggy Instamart Glitches A Week Before Going Public

With its market debut just around the corner, quick commerce major Swiggy Instamart faced a major outage for over an hour late on Tuesday (October 29).

The outage left many users unable to access its services. Meanwhile, a big banner on the Swiggy app showed that the platform was “temporarily unavailable,” adding that “We will be back shortly”.

The app came back online around 12.15 AM on October 30 and, at the time of publishing the story, was accepting orders.

As per outage tracker DownDetector, the issue with the app started pouring in around 10.16 PM on Tuesday. As many as 13 reports of technical issues were lodged on the crowd-sourced platform by 11.40 PM.

One of the Swiggy delivery executives Inc42 spoke with said that they were facing troubles “scanning their orders” and accepting payments. 

Meanwhile, users thronged social media platforms to flag the delays in receiving orders and slammed the foodtech major for not processing their orders on time. 

“What’s going with #Swiggy. I am waiting for my instamart order from (the) past 1 hour. No one is replying and even I am not able to cancel my order. Is this the way you will succeed in your IPO?” said a user on social media platform X.

The cause of the current outage remains unclear, and Swiggy has yet to release an official statement regarding the same. Inc42 has reached out to the company for a comment on the matter.

The development comes at a time when the foodtech decacorn is already under scrutiny as it heads towards its IPO. Just a day ago, it filed its red herring prospectus (RHP) with the Securities and Exchange Board of India (SEBI) for a listing on BSE and NSE.

As per its latest IPO papers, the foodtech juggernaut’s public issue will comprise a fresh issue of shares worth INR 4,499 Cr and an offer for sale (OFS) component of up to 17.5 Cr equity shares.

The company’s IPO will open for subscription on November 6 and close on November 8.

While the company is yet to disclose its IPO price band, reports claim that Swiggy will set it in the range of INR 371 to INR 390. At the upper end of the spectrum, the IPO size is expected to be over INR 11,300 Cr. 

The foodtech major will use the proceeds to shore up its dark store network, ramp up brand marketing, funding inorganic growth through unidentified acquisitions and for general corporate purposes.

On the financial front, the company’s net loss stood at INR 2,350 Cr in the fiscal year 2023-24 (FY24) against INR 4,179.3 Cr in FY23. Meanwhile, revenue from operations jumped 36% to INR 11,247.3 Cr in the fiscal under review from INR 8,264.5 Cr in FY23.

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