Swiggy Sizzles on Dalal Street: Shares Jump 12% in Biggest Rally Since IPO

Shares of food delivery giant Swiggy Ltd. soared 12.35% on Monday, May 5, marking the company’s largest single-day gain since its stock market debut. The surge was driven by investor optimism surrounding the company's aggressive expansion of its rapid delivery arm, Bolt, and a favorable market shift following Zomato ’s recent exit from the 10-minute delivery space. Swiggy’s stock closed at ₹343 on the National Stock Exchange, up ₹37.70 from the previous session.

On Friday, Swiggy announced that Bolt, its express food delivery service launched in October 2024, is now operational in over 500 cities across India. The company claims that Bolt enables deliveries within 10 minutes, facilitated by partner restaurants located within a 2-kilometer radius of customers.

Since its rollout, Bolt has contributed to over 10 percent of Swiggy’s total order volumes and has managed to forge partnerships with more than 45,000 restaurants, including top national and international chains such as McDonald’s, Subway, and KFC.

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Market analysts see this expansion as a strategic win for Swiggy, especially in the context of rival Zomato’s recent decision to wind down its own quick-delivery vertical, 'Instant'. Zomato cited inconsistent demand patterns and “sustainability challenges:” as key reasons behind the move.

With its archrival stepping back, Swiggy has gained breathing space to strengthen its footprint in Tier 2 and Tier 3 cities, where quick-service delivery is emerging as a significant growth vertical.

It is important to note that despite Monday's rally, Swiggy's stock remains well below its 52-week high of Rs 617.30, recorded on 23^rd December 2024. However, the recent uptick has rekindled investor confidence, with market watchers noting that the company’s “operational focus” and differentiated strategy” may help it return to stronger valuation territory.

Swiggy is a homegrown online food ordering and delivery company. Founded in 2014, it is headquartered in Bangalore and operates in more than 600 cities. Besides food delivery, the platform also provides quick commerce services under the name Swiggy Instamart, and same-day package deliveries with Swiggy Genie.

As Swiggy continues to invest in technology and last-mile logistics for Bolt, the company is also reportedly exploring deeper integration with cloud kitchen networks and localized delivery hubs to enhance efficiency and cut costs. Industry observers reckon that if executed effectively, these initiatives could pave the way for long-term profitability in a sector known for wafer-thin margins and high operational costs.