Swiggy shares jumped as much as 8% in Thursday’s trade, according to media reports. According to media reports, about 5,000 merchants will face a 2% hike in the commission they pay to the company. The report indicated that Swiggy is implementing rate adjustments for partner merchants operating under the old commission model.
On Thursday, Swiggy shares recorded their best rise in two weeks. However, the stock lost some of its intraday gains, closing at ₹365.50, up 7.1% on the NSE.
The food-tech giant had earlier informed select restaurant partners via email that the standardisation would be effective from February 16, with the additional amount being deducted from restaurant payments. The company also said that partner restaurants can share their feedback on the matter by February 15.
Swiggy’s commission rates for restaurants typically range between 15-22% plus GST, excluding delivery and payment gateway charges.
Earlier this week, foreign brokerage Citi initiated coverage on Swiggy shares and highlighted improved execution in the food delivery and quick commerce businesses. “We see potential gains from continued discipline in execution across growth and cost strategies,” Citi wrote in an investor note. The brokerage has set a 12-month target price of ₹480, indicating a 31% gain from Thursday’s close.
However, the stock has faced some selling pressure after the online delivery platform reported wider losses for the December quarter. While net loss widened to ₹800 crore from ₹574 crore a year ago, the company’s revenue grew 31% year-on-year to ₹3,993 crore.
