The e-commerce sector presents significant investment opportunities through notable listings like Zomato Ltd, FSN E-Commerce Ventures Ltd, and Swiggy Ltd, offering exposure to India’s growing digital retail landscape.
Content:
- Overview of the E-Commerce IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in E-Commerce Sector IPOs
- Disadvantages of Investing in E-Commerce Sector IPOs
- Role of E-Commerce Industry in the economy
- How to invest in E-Commerce IPOs?
- Future outlook of E-Commerce IPOs in India
- E-Commerce IPOs in India – FAQ
Overview of the E-Commerce IPOs in India
The e-commerce sector features prominent listings including Zomato Ltd and FSN E-Commerce Ventures Ltd, demonstrating robust potential in digital commerce and technology-enabled retail solutions nationwide.
These offerings enable investors to participate in sector growth while benefiting from increasing digital adoption, changing consumer behaviors, and expanding online marketplace penetration across various segments.
IPO Fundamental Analysis
Zomato Ltd
Zomato Ltd demonstrated notable growth in FY24, with an increase in revenues and profitability. The company’s financial position strengthened compared to FY23, supported by better operational performance and improvements in asset allocation, despite challenges in profitability in previous years.
Revenue Trend: Revenue surged to ₹12,114 crores in FY24 from ₹7,079 crores in FY23, reflecting a 71.08% increase. Expenses rose to ₹12,072 crores in FY24 compared to ₹8,290 crores in FY23.
Equity and Liabilities: Equity capital increased to ₹868 crores in FY24 from ₹836.40 crores in FY23. Reserves improved to ₹19,545 crores from ₹18,623 crores. Total liabilities grew to ₹23,356 crores from ₹21,599 crores.
Profitability: Operating profit turned positive at ₹42 crores in FY24 from a loss of ₹1,210 crores in FY23. OPM improved to 0.32% in FY24 from -15.59% in FY23, showing operational recovery.
Earnings per Share (EPS): EPS increased to ₹0.40 in FY24, a significant recovery from -₹1.16 in FY23, reflecting the company’s progress in stabilizing shareholder returns.
Return on Net Worth (RoNW): Net profit reached ₹351 crores in FY24 from a loss of ₹971 crores in FY23. Improved reserves and reduced losses contributed to enhanced RoNW performance.
Financial Position: Total assets rose to ₹23,356 crores in FY24 from ₹21,599 crores in FY23, with non-current assets at ₹17,898 crores and current assets at ₹5,458 crores. Contingent liabilities stood at ₹509 crores in FY24.
Swiggy Ltd
Swiggy Ltd. reported significant financial shifts in FY24 compared to FY23, reflecting its ongoing investments and operational challenges. Despite revenue growth, the company continued to face profitability constraints, with improvements in equity capital and changes in liabilities showcasing its evolving financial structure.
Revenue Trend: Revenue increased to ₹11,247 crores in FY24 from ₹8,265 crores in FY23, a growth of 36%. Expenses also rose to ₹13,455 crores from ₹12,540 crores, resulting in an operating loss of ₹2,208 crores.
Equity and Liabilities: Equity capital increased to ₹3.01 crores in FY24 from ₹2.66 crores in FY23. Reserves further declined to -₹7,785 crores from -₹6,509 crores, while total liabilities reduced to ₹10,529 crores from ₹11,281 crores.
Profitability: Operating profit loss narrowed to ₹2,208 crores in FY24 from ₹4,276 crores in FY23. OPM improved to -18.98% compared to -49.07% in FY23, reflecting better cost management.
Earnings per Share (EPS): EPS improved to -₹781.70 in FY24 compared to -₹1,573 in FY23, demonstrating reduced per-share losses due to narrowing overall losses.
Return on Net Worth (RoNW): Negative reserves continued to impact RoNW, with net losses reducing to ₹2,350 crores in FY24 from ₹4,179 crores in FY23, indicating a move toward financial recovery.
Financial Position: Total assets decreased to ₹10,529 crores in FY24 from ₹11,281 crores in FY23, driven by a decline in current assets to ₹6,737 crores from ₹7,823 crores. Non-current assets increased to ₹3,793 crores.
FSN E-Commerce Ventures Ltd
FSN E-Commerce Ventures Ltd showcased steady growth in FY24, reflecting its resilience and operational efficiency. Key metrics reveal improvements in revenue, profitability, and financial position compared to FY23, demonstrating the company’s potential to adapt and perform in competitive markets.
Revenue Trend: Sales rose to ₹6,386 crores in FY24 from ₹5,144 crores in FY23, a growth of 24.15%. Expenses increased to ₹6,039 crores compared to ₹4,888 crores, impacting the operating profit margin slightly.
Equity and Liabilities: Equity capital increased marginally to ₹285.60 crores in FY24 from ₹285.25 crores. Reserves declined to ₹976.13 crores from ₹1,093 crores. Total liabilities grew to ₹3,401 crores from ₹2,950 crores.
Profitability: Operating profit improved to ₹346.15 crores in FY24 from ₹256.04 crores. The operating profit margin (OPM) increased to 5.40% in FY24 compared to 4.95% in FY23.
Earnings per Share (EPS): EPS improved to ₹0.11 in FY24, up from ₹0.07 in FY23. This growth signifies enhanced earnings distributed among shareholders.
Return on Net Worth (RoNW): The net profit rose to ₹39.75 crores in FY24 from ₹20.96 crores in FY23, reflecting better returns despite a slight dip in reserves.
Financial Position: Total assets grew to ₹3,401 crores in FY24 from ₹2,950 crores in FY23. Non-current assets rose to ₹1,108 crores, while contingent liabilities increased significantly to ₹853.70 crores from ₹658.02 crores.
IPO Financial Analysis
Zomato Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 12,114 | 7,079 | 4,192 |
| Expenses | 12,072 | 8,290.00 | 6,043.00 |
| Operating Profit | ₹ 42.00 | ₹ -1,210.00 | ₹ -1,851 |
| OPM % | 0.32 | -15.59 | -39.49 |
| Other Income | 847 | 681.6 | 792.3 |
| EBITDA | 889 | -528.8 | -1,356 |
| Interest | 72 | 48.7 | 12 |
| Depreciation | 526 | 437 | 150.3 |
| Profit Before Tax | 291 | -1,014 | -1,221 |
| Tax % | -20.62 | 4.3 | -0.16 |
| Net Profit | 351 | -971 | -1,223 |
| EPS | 0.4 | -1.16 | -1.54 |
Swiggy Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 11,247 | 8,265 | 5,705 |
| Expenses | 13,455 | 12,540.00 | 9,356.00 |
| Operating Profit | ₹ -2,208.00 | ₹ -4,276.00 | ₹ -3,651 |
| OPM % | -18.98 | -49.07 | -59.66 |
| Other Income | 356.37 | 440.6 | 241.68 |
| EBITDA | -1,821 | -3,826 | -3,236 |
| Interest | 71.4 | 58.19 | 48.38 |
| Depreciation | 420.59 | 286 | 170.09 |
| Profit Before Tax | -2,344 | -4,179 | -3,628 |
| Tax % | — | — | — |
| Net Profit | -2,350 | -4,179 | -3,629 |
| EPS | -781.7 | -1,573 | -4,238 |
FSN E-Commerce Ventures Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales Insight-icon | 6,386 | 5,144 | 3,774 |
| Expenses | 6,039 | 4,888.00 | 3,611.00 |
| Operating Profit | ₹ 346.15 | ₹ 256.04 | ₹ 163 |
| OPM % | 5.4 | 4.95 | 4.3 |
| Other Income | 29.94 | 30.21 | 26.97 |
| EBITDA | 376 | 286 | 190 |
| Interest | 82.83 | 74.61 | 46.51 |
| Depreciation | 224.23 | 173 | 96.41 |
| Profit Before Tax | 69 | 38 | 47 |
| Tax % | 36.67 | 35.35 | 12.72 |
| Net Profit | 40 | 21 | 41 |
| EPS | 0.11 | 0 | 1 |
About the Company
Zomato Ltd
Zomato Ltd, founded in 2008, is a leading restaurant aggregator and food delivery platform operating across India. It offers restaurant listings, reviews, and online food delivery services, making dining experiences seamless for users.
The company also provides marketing tools and logistics support for restaurant partners, ensuring an integrated food service ecosystem. Zomato has expanded its presence in over 1,000 cities, establishing itself as a dominant player in the food delivery industry.
Swiggy Ltd
Swiggy Ltd, established in 2014 and headquartered in Bangalore, is an Indian online food delivery and grocery service provider. It operates in over 580 cities, offering diverse services like food delivery, grocery shopping via Instamart, and package delivery through Swiggy Genie.
The platform connects users with local restaurants, grocery stores, and delivery partners, ensuring convenience and efficiency. Swiggy’s quick commerce initiatives and expanded delivery network position it as a leader in India’s digital retail landscape.
FSN E-Commerce Ventures Ltd
FSN E-Commerce Ventures Ltd, incorporated in 2012, operates Nykaa, a prominent lifestyle and beauty retail platform in India. Nykaa offers curated beauty, fashion, and personal care products through its website, apps, and physical stores.
Nykaa’s omnichannel strategy combines online convenience with offline presence, enhancing the customer experience. The company’s strong brand identity and diverse offerings have made it a major player in India’s e-commerce and lifestyle segments.
Advantages of Investing in E-Commerce Sector IPOs
The main advantages of Investing in E-Commerce Sector IPOs include exposure to India’s digital retail growth, scalable business models, technological innovation opportunities, and strategic market positioning through established companies like Zomato Ltd.
1. Digital Transformation: The sector benefits from increasing internet penetration, smartphone adoption, digital payment growth, changing consumer preferences, and continuous technological advancement in retail delivery.
2. Scalable Operations: Digital platforms enable rapid market expansion, cost-effective customer acquisition, wide geographical reach, and efficient service delivery without proportional infrastructure investments.
3. Innovation Potential: Continuous technological advancements, artificial intelligence integration, personalized shopping experiences, and data analytics capabilities enhance service quality and customer engagement.
Disadvantages of Investing in E-Commerce Sector IPOs
The main disadvantages of investing in e-commerce sector IPOs include high operational costs, technological infrastructure requirements, competitive pressures, and profitability concerns, as demonstrated in the performance metrics of companies like Zomato Ltd.
1. Operational Costs: Companies face significant expenses in logistics networks, delivery infrastructure, technology platforms, marketing campaigns, and customer acquisition strategies affecting the path to profitability.
2. Market Competition: Intense rivalry among established players like Swiggy Ltd and new entrants requires substantial marketing investments, discount offerings, and continuous service improvements.
3. Customer Retention: Maintaining user loyalty, reducing acquisition costs, ensuring service quality, and adapting to changing preferences demands continuous platform improvements and marketing investments.
Role of E-Commerce Industry in the economy
The e-commerce sector drives economic advancement through digital marketplace creation, employment generation, MSME enablement, and support to India’s growing digital economy nationwide.
The industry promotes digital adoption, enables market access, creates technology-based employment opportunities, and strengthens India’s position in global digital commerce.
How to invest in E-Commerce IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements, and thoroughly research upcoming e-commerce sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions, and sector trends, and maintain required funds for a timely subscription while following systematic investment approaches.
Future outlook of E-Commerce IPOs in India
The e-commerce sector demonstrates promising growth potential with increasing digital adoption, changing consumer behaviors, technological advancements, and expanding market opportunities.
Industry innovation, platform development initiatives, and market expansion plans indicate positive prospects for future IPOs, supported by growing digital commerce requirements nationwide.
E-Commerce IPOs in India – FAQ
E-commerce IPOs represent the first public offerings from digital retail companies, like Zomato Ltd and FSN E-Commerce Ventures Ltd, enabling investor participation in digital commerce growth.
Major listings include Zomato Ltd and FSN E-Commerce Ventures Ltd, offering investors exposure to digital retail platforms, food delivery services, and online marketplace solutions.
E-commerce sector IPOs provide strategic investment opportunities in India’s digital retail growth, with companies like Zomato Ltd demonstrating the potential for technological innovation and expansion.
Zomato Ltd marks a significant milestone as the largest e-commerce sector public offering, showcasing strong market interest and setting benchmarks for industry valuations.
Begin by opening a trading account through Alice Blue, complete comprehensive KYC requirements, analyze market conditions, study company fundamentals, and maintain adequate subscription funds.
E-commerce sector IPOs offer substantial long-term growth potential, supported by India’s expanding digital marketplace, technological advancements, and increasing online consumer adoption.
Historical performance indicates strong growth potential, though returns depend on market penetration, customer acquisition costs, technological innovation, and company-specific operational efficiencies.
Several e-commerce companies in India are preparing for initial public offerings (IPOs). Snapdeal is planning an IPO to raise ₹1,250 crores. Investors should monitor official announcements for specific dates and details.
Access comprehensive research and analysis through Alice Blue’s dedicated research portal, along with additional information from financial websites, SEBI documentation, and industry reports.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
