Swiggy has been extremely popular since its beginning, has already had phenomenal growth, and continues to build on its excellent heritage today.
Swiggy is a meta food delivery app developed in Bengaluru’s Koramangala district by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Swiggy is primarily a food delivery platform, with services available on Android and iOS smartphones as well as through the internet. It collaborates with a variety of eateries to give quick access to a large choice of food items from various cuisines. It also takes consumer comments and ratings, which may be used to assist others choose restaurants and menu items intelligently.
Swiggy’s Backstory
Swiggy had a difficult beginning. The co-founders, IIT grads Sriharsha Majety and Nandan Reddy, had a difficult time with their prior company endeavour Bundl, which collapsed. They had created a viable business strategy in their prior enterprise Bundl, but missed the technological capabilities necessary to build an online corporation. They possessed the concept and business plan, but not the technical know-how. Rahul Jamini, a former Myntra software developer and IIT alumnus, then joined. Swiggy was founded in August 2014 by all three co-founders putting their individual skills on the table. They developed a long-term business approach that aided Swiggy in achieving market leadership.
Swiggy’s investments and acquisitions
In 2015, the business began to seek outside funding. The first was a $2 million investment from Accel and SAIF Partners, with additional funding provided by Norwest Venture Partners. Swiggy received $15 million the next year from a mix of new and old investors, including Bessemer Venture Partners and Harmony Partners. Naspers led a $80 million investment round for Swiggy in 2017. Swiggy earned $100 million in 2018 from China’s Meituan-Dianping and Naspers, and a series of investments elevated the company’s value to above $1 billion. Swiggy bought Bangalore-based AI firm Kint.io in February 2019.
Swiggy acquired $43 million in investment in April 2020, valuing the firm at $3.6 billion.
It paid full cash for SuprDaily, a Mumbai-based milk delivery firm. Fingerlix, a Mumbai-based ready-to-eat food firm, received a Rs. 31 crore investment from the company in 2019. Swiggy was valued at $4.9 billion after receiving $800 million in Series J fundraising from Falcon Edge Capital, Goldman Sachs, Think Capital, Amansa Capital, and Carmignac, as well as current backers Prosus Ventures and Accel.
Swiggy’s revenue stream
Swiggy’s economic concept is based on hyper – local on-demand delivery service. It partners with restaurants and acts as a conduit between them and their clients. Swiggy’s platform is based on cutting-edge technology and serves as a single point of contact. Swiggy collaborates with restaurants, retailers, grocery stores, and delivery services.
Customers may order their favourite foods to be delivered to their doorsteps via the app, which provides a large selection of eateries, their menus, and prices. It also gives clients the option of purchasing fresh supplies and having additional items and essentials delivered as needed.
Swiggy’s accomplishment
In August 2016, Swiggy handled over 1.5 million deliveries each month. Swiggy, on the other hand, reported in October 2019 that they were managing 1.5 million deliveries per day. As a result, the firm grew 30 times in three years. Swiggy’s VP of Product, Revenue, and Success, Anuj Rathi, has played a key role in the company’s growth.According to revenues published by the food delivery firm in February 2021 for the financial year 2019-20, it now stands at Rs 2,776 crore, a 115 percent increase from the previous financial year. During the same fiscal year, however, the firm posted a net loss of Rs 3,768 crores. This is a 61 percent increase over the previous fiscal year.
Swiggy’s business increased by 85 percent in the year under review. In addition, the firm said that it has added over 100,000 establishments and presently has a delivery fleet of over 200,000 people. Swiggy also stated, “We widened our presence across the country by opening 405 new cities.” Swiggy became a unicorn barely four years after its founding, making it the fastest firm in India to do so.
Swiggy has previously partnered with Hero Lectro, an e-bike manufacturer, and Fast Despatch Logistics, a UK-based last-mile delivery company, in an effort to diversify its business verticals. This will allow the organisation to deliver end-to-end orders using cargo e-cycles in a seamless manner. Swiggy now has engaged Reliance BP Mobility Limited (RBML) and plans to expand by using Ola Electric.
