Swiggy: How is it Delivering Happiness at the Doorstep?

Do you wish to have a delicious bite of blueberry cheesecake in the middle of the day at work or a hearty biryani meal for lunch?

Moving out of your house, facing the relentless traffic, unending queues at restaurants and cafes, waiting for your order, etc., sounds demotivating as always. They were some of the major hindrances between a person and his/her food. However, things have changed since August 2014.

Yes, with the birth of Swiggy, ordering food has been revolutionized in India; it has become as easy as one wants it to be.

With the launch of Swiggy, often dubbed as one of India’s fastest-growing companies, ordering food at home, office, or even while throwing a party seems like a breeze. Swiggy is a hyper-local food delivery application founded by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini in Bengaluru’s neighborhood, Koramangala. Swiggy has been quite popular even in its early days; it witnessed an exemplary expansion and is carrying on its successful legacy till now!

Here's more about Swiggy, its Founders and team, Startup Story, its vision and mission, its Business and Revenue Model, Funding and investors, Growth, Competitors, Challenges, Awards and Recognition, and more.

Swiggy - Company Highlights

About Swiggy
Swiggy - Industry
Swiggy - Founders and Team
Swiggy - Startup Story
Swiggy - Mission and Vision
Swiggy - Name and Logo
Swiggy - Products and Features
Swiggy - Business Model
Swiggy - Revenue Model
Swiggy - ESOPs
Swiggy - Challenges Faced
Swiggy - Funding and Investors
Swiggy - Investments
Swiggy - Acquisitions
Swiggy - Growth
Swiggy - IPO
Swiggy - Campaigns
Swiggy - Awards and Recognitions
Swiggy - Competitors
Swiggy - Future Plans

About Swiggy

Swiggy is a food delivery platform at its core, the services of which can be accessed from Android and IOS devices, and through the website. It partners with a wide range of restaurants and provides easy access to diverse food dishes from varying cuisines. Furthermore, it also accepts feedback and ratings from the customers that help others pick their restaurants and choices of dishes wisely.

As soon as a delivery is done, the customer is entitled to give feedback, and rate the food, and the delivery services. This insightful feedback guarantees that Swiggy keeps up its quality standards and that the user experience is always being improved.

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Swiggy - Industry

A Statista report analysis indicates that the Indian online food delivery business is expected to develop significantly, with an anticipated revenue of US $43.78 billion by 2024. The sector exhibits strong potential for progress, as evidenced by the astounding 16.14% annual growth rate (CAGR 2024-2029) that this surge represents.

The market size is expected to reach US $92.50 billion by 2029, highlighting the enormous potential in India's rapidly expanding online meal delivery sector. This prediction emphasizes how changing customer tastes and technology breakthroughs are changing the face of the food sector and leading to a greater dependence on digital platforms for meal delivery services.

Swiggy - Founders and Team

Lakshmi Nandan Reddy, Rahul Jaimini, and Sriharsha Majety (CEO and Co-Founder) founded Swiggy in 2014.

Sriharsha Majety

Sriharsha Majety is the CEO and Co-Founder of Swiggy. He had completed a B.E in Electrical and Electronics along with an M.Sc in Physics from BITS Pilani in the year 2008. Sriharsha then went to study the CFA program at the CFA Institute and managed to complete level II of the program.

After this, he considered enrolling for an MBA in Finance and chose IIM, Calcutta, from where he graduated in 2011. Before Swiggy, Majety worked as the recruitment coordinator for IIM and was also a part of the rates trading Desk in London at Nomura International. In the year 2013, he co-founded Bundl Technologies Pvt Ltd along with Nandan Reddy, which became the cradle for Swiggy.

Lakshmi Nandan Reddy

Lakshmi Nandan Reddy is the Co-Founder of Swiggy. He is also a BITS Pilani alumnus, who pursued M.Sc from the same college and completed it in 2010. Reddy worked as the head of the operations of social media at SourcePilani, the first BPO for rural India, for about 2 years. He was the founding partner of Zurna, a restaurant in Hyderabad, after which he co-founded Bundl, which later on led to Swiggy.

Rahul Jaimini

Rahul Jaimini, who worked as a Senior Software Engineer at Myntra, joined Majety and Nandan to build the application for Swiggy. Rahul completed a Dual Degree from IIT Kharagpur in Computer Science & Engineering in 2010. He has also worked for companies like Philips Research and Netapp. Jaimini left the organization in May 2020 and Co-Founded Pesto Tech.

Swiggy operates with 1,001 - 5,000 employees as per LinkedIn.

Swiggy - Startup Story

Swiggy wasn't started as a food delivery business. Yes, you might hear this for the first time, but it is how it is. Sriharsha spent over 6 months cycling across Europe with a business idea in 2013. The first idea that struck his mind was that of a backpacking chain of hostels that would help foreigners when they look to visit India.

In the same year, Sriharsha and Nandan came together to build a company that would empower courier services across the country and would stand as a logistics solution. They named it Bundl Technologies Private Limited. However, Bundl did not turn out successful and forced the founders to shut down the business in 2014. Following its failure, Majety began his research and discovered much potential in the food industry. This led to the birth of Swiggy, an online food delivery company. They met Rahul Jaimini, who helped them build the software, and the company was finally founded in August 2014.

When Swiggy came to the market, the food delivery sector already had applications like Foodpanda, Tinyowl, and Ola Café. Foodpanda and Tinyowl were later acquired by Ola Cabs and Zomato respectively, and Ola café was eventually shut down, just barely a year old. While all these companies struggled, Swiggy started in 2014 with 6 delivery boys providing food from 25 restaurants, and at the end of its first year, in March 2015, the company served 1 million orders per month. This is how the journey started for the food tech giant.

Swiggy - Mission and Vision

The mission on the company's website states "Our mission is to elevate the quality of life for the urban consumer with unparalleled convenience. Convenience is what makes us tick. It's what makes us get out of bed and say, "Let's do this."

The Swiggy Vision is "to be the leading local service provider in India. By offering a wide range of service alternatives, they hope to redefine ease for all users and become the country's easiest and most accessible platform."

Swiggy - Name and Logo

Swiggy parent company is "Bundl Technologies Private Limited."

Swiggy - Products and Features

Swiggy has launched many products and features. Some of the features are:

• Swiggy Photoshoot: To improve the visual attractiveness of restaurant menus, Swiggy introduces an AI-based solution on November 8, 2023
• Swiggy Introduces Learning Station: To offer customized content for restaurant partners' growth, Swiggy Presents Learning Station on September 13, 2023
• The Swiggy Moonlighting Policy permits delivery employees to work regular jobs in addition to extracurricular activities on August 24, 2023
• Swiggy Menu Score Tool, which provides restaurant partners with data-driven recommendations to increase conversions in 2023
• Co-branded credit cards were introduced by Swiggy in collaboration with Mastercard and HDFC Bank to improve customers' purchasing experiences on July 26, 2023
• Swiggy WhatToEat function, which allows users to browse meal options according to their appetites and moods on July 2023
• With the launch of Swiggy Mini, fee-free product sales are now possible throughout India on April 2023
• Swiggy Launchpad: Offering new restaurant partners a commission-free first month, Swiggy Launchpad is live as per the news report of March 2023
• Swiggy Dine Out Offers: Providing millions of Swiggy users in 24 cities with discounts at over 18,000 restaurants in February 2022
• Swiggy Extends Cloud Cooking Business: To open restaurants in new areas, Swiggy is extending its Cloud Kitchen program in July 2022
• Swiggy Affiliate Program: Offering a lucrative affiliate program to people who send Swiggy customers

Swiggy - Business Model

Swiggy has established itself as a major participant in the hyperlocal on-demand food delivery market by using state-of-the-art technology to link consumers with their preferred restaurants and vital suppliers. With a large selection of eateries and retail establishments including extensive menus and pricing, the platform provides a one-stop shop for consumers looking for convenience and diversity.

In addition to delivering food, Swiggy also offers services for buying groceries and other requirements, which strengthens its value proposition and meets a range of customer demands. Swiggy's operations revolve around crucial tasks like overseeing payment and delivery procedures, establishing alliances with nearby businesses, and orienting delivery providers and suppliers to guarantee smooth transactions and effective services.

Swiggy's client segmentation demonstrates its flexibility and dedication to satisfying changing customer needs. It serves a range of consumer demographics, such as those who enjoy the ease of placing orders from home, look for hassle-free online shopping, or depend on delivery services for their purchases.

Enabled by a strong technological infrastructure, a large network of local partners, and a specialized delivery fleet, Swiggy maintains its dedication to efficiency, dependability, and client happiness. Swiggy is a leader in hyperlocal delivery, and it will continue to improve the overall consumer experience by offering unmatched convenience and flexibility with features like unconstrained ordering, easy online payments, and a variety of payment options.

Swiggy Business Model | How Does Swiggy Make Money

Swiggy is one of the top food aggregator in India. Lets have an insight into its business model and revenue model to understand the reason behind its success.

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Swiggy - Revenue Model

Swiggy has expanded its streams of revenue throughout the years. Here are some prominent streams that the company currently draws its revenue from:

Delivery charges

Customers are Swiggy's main source of income. A little delivery cost is charged by the business, and it goes up based on the overall amount of the order. Moreover, Swiggy frequently increases the fees during periods of exceptional weather or excessive demand.

Commissions

The commissions that Swiggy gets are a significant source of income for the company. These commissions are gathered from the eateries to produce sales leads and use Swiggy's fleet to deliver the food.

Advertising

Swiggy also earns some revenue with:

1. Banner Promotions – Swiggy encourages restaurants to promote their brand via display ads on its app. This helps all the restaurants that are partnered with Swiggy from different regions, to receive considerable visibility against the payments they make.
2. Priority listing of restaurants – Swiggy has an option for priority listing and in them, the company includes select restaurants against premium rates. A restaurant has to pay more if it wants to be displayed ahead of its peers.

Platform Fees

Swiggy is also earning revenue from platform fees, which started in April 2023 in cities like Bangalore, Hyderabad, and Chennai. They are charging Rs. 2 as a platform fees for every order.

Swiggy Access

Produces income by renting out fully functional cooking areas to restaurant partners, allowing them to grow into new neighborhoods.
Swiggy Super Memberships: Offers members advantages like priority issue resolution and spike price-free orders in exchange for a subscription-based income stream.

Swiggy Go

Expand revenue sources by generating a new revenue stream for the business by providing quick package pick-and-drop services.

Instamart

Produces income via expedited grocery delivery, guaranteeing prompt delivery and meeting clients' urgent requirements.

Swiggy Genie

Makes money by charging for on-demand pick-and-drop services for a range of products, giving consumers convenience and making money from the delivery process.

Swiggy Bazaar

To enter the social commerce space, Swiggy intends to make money by offering fresh farm produce and food FMCG on its platform.

Affiliate Income

Increases sales for the partner company and brings in money by collaborating with financial institutions to provide clients discounts when they use their credit and debit cards.

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Swiggy - ESOPs

Swiggy has demonstrated its dedication to rewarding its employees through its Employee Stock Ownership Plan (ESOP) liquidity program since 2021. With a start date of June 2022 and a value of $23 million, the first tranche offered benefits to about 900 workers.

With this initiative, Swiggy is demonstrating its commitment to recognizing and rewarding its workforce—it has held four liquidity events since 2018. Building on this momentum, Swiggy further demonstrated its dedication to employee engagement and retention when it announced that the second phase of its ESOP liquidity program will be with a total investment of $50 million as per the news report of July 2023.

Swiggy - Challenges Faced

Swiggy has faced numerous difficulties since its founding, some of which are carried over from Bundl. Swiggy deals with a plethora of challenges every day, ranging from making sure the app runs smoothly to managing relationships with restaurants and delivery partners and skillfully negotiating revenue channels while responding to unfavorable reviews.

Notably, the platform experienced labor unrest when delivery executives went on strike in Bangalore and Mumbai, demanding better pay and working conditions. The untimely demise of a Swiggy delivery worker in Hyderabad brought attention to the dangers of the profession.

Swiggy had unheard-of challenges during the COVID-19 outbreak, but the company quickly adjusted, putting in place safety precautions for its employees and enduring layoffs. Swiggy was also forced to temporarily halt Swiggy Genie operations and reduce services like Supr Daily due to operational difficulties. Despite these difficulties, Swiggy's fortitude is evident as it works to overcome setbacks and advance in the very competitive food technology market.

Swiggy - Funding and Investors

Swiggy has seen a total of $3.8 billion worth of funding over 19 rounds.

Swiggy raised INR 5,085 crore from anchor investors ahead of Its IPO launch on November 5, 2024. Over 75 investors, including BlackRock, Fidelity, Nomura, BNP Paribas, and Allianz Global, invested in the anchor portion of Swiggy's IPO.

Amitabh Bachchan’s family office has purchased a small stake in Swiggy by buying shares from the company’s employees and early investors, according to sources. Raamdeo Agrawal, chairman of Motilal Oswal Financial Services, has also invested in Swiggy, as quick-commerce companies are currently seeing a surge in fundraising. Additionally, Hindustan Composite’s board has agreed to buy 1,50,000 equity shares in Swiggy, investing INR 5.17 crore, as per a disclosure made through the National Stock Exchange (NSE).

Swiggy - Investments

Swiggy has made a total of 7 investments to date.

Here's the list of the Swiggy investments:

Exit

Swiggy has exited from Fingerlix.

Swiggy - Acquisitions

Swiggy has acquired 6 companies to date.

Here's a glimpse at all the companies that Swiggy has acquired:

Swiggy - Growth

Swiggy Growth Highlights are:

• It has 1,50,000+ restaurant partners countrywide as of April 2024
• It has 2,60,000+ delivery executives as of April 2024
• It has a presence in 500+ cities in PAN India as of April 2024
• The valuation of Swiggy is $12.7 billion as per news report of April 9, 2024

Swiggy Financials FY24

Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy's total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.

Swiggy - IPO

Swiggy plans to raise INR 5,000 crore through its upcoming IPO and will ask shareholders for approval at an EGM on October 3, 2024. For the year ending March 31, 2024, Swiggy saw a 36% growth in operating revenue and reduced its net loss by 44%. The company had earlier aimed to raise INR 3,750 crore in fresh funds and an INR 6,664 crore offer for sale. However, the final size of the IPO may change from what it is currently asking shareholders to approve. Swiggy opened its IPO on November 6, 2024, with allotment scheduled for November 11. Swiggy's IPO listing date is scheduled for November 13.

As of October 2024, Swiggy has reduced its valuation by 10-16% to around $12.5-13.5 billion for its upcoming IPO because of recent market fluctuations. According to Reuters, Swiggy made this move in response to volatility in the Indian stock markets, aiming to ensure that investors who bid during the IPO have strong potential for returns.

Swiggy - Campaigns

"Sharma Ji Ki Beti," Swiggy Dineout's campaign, aims to change Indian customers' dining-out experiences. The campaign, which was created by Toaster India, fits in with Swiggy Dineout's strategic aim to raise its profile during one of the company's yearly flagship events, the Great Indian Restaurant Festival (GIRF).

With this innovative campaign, we hope to challenge the norms around dining out and provide consumers across the country with a remarkable dining experience.

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Swiggy - Awards and Recognitions

Here are some of the popular awards won by Swiggy:

• Swiggy won the "Best Employer Brand Award" in 2023 from LinkedIn Talent Awards.
• Swiggy won the Economic Times Start-up Award in 2017 as the Best Start-up of the Year
• Swiggy also was recognized at Star Re. Imagine Awards for its tagline ‘No order too small’
• The brand won the Outlook Social Media Award in 2016
• Furthermore, Swiggy is also known for achieving unicorn status in just 4 years since it was founded

Swiggy - Competitors

Though Swiggy boasts of a huge market now, it has always witnessed tough market competition from companies like:

• Zomato
• Faasos
• Box8

Some other competitors of Swiggy include Zepto, Dunzo, FreshMenu, etc.

Swiggy - Future Plans

Swiggy is aiming for a valuation of about $15 billion in its upcoming stock market debut, where it plans to raise $1-1.2 billion as per the sources. As of October 24, 2024, Swiggy has reduced its valuation by 10-16% to around $12.5-13.5 billion for its upcoming IPO due to recent market fluctuations. If successful, it would be one of the largest Indian initial public offerings (IPOs) this year.

Swiggy formally became a public company on April 8, 2024. The company's status with the Registrar of Companies has been updated after a resolution adopted by its board of directors. This update represents a significant step towards the company's definitive initial public offering (IPO) plan, which is slated to take place in the second half of this year. The holding company's name has been changed from Swiggy Private Limited to Swiggy Limited as part of this transformation, reflecting its development as a publicly traded company.

After reaching this momentous milestone, Swiggy hopes to take advantage of its newfound prominence and start growing and expanding to fully utilize the enormous potential of the public markets. This calculated action highlights Swiggy's dedication to seizing fresh opportunities, increasing shareholder value, and reaffirming its position as the industry leader in rapid commerce and food.

FAQs

Who is the founder of Swiggy?

Rahul Jaimini, Sriharsha Majety, and Nandan Reddy are the founders of Swiggy, who founded the company in 2014.

What is Swiggy?

Swiggy is a food delivery platform at its core, the services of which can be accessed from Android and IOS devices, and through the website. It partners with a wide range of restaurants and provides easy access to diverse food dishes from varying cuisines.

Which is Swiggy's parent company?

Swiggy parent company is Bundl Technologies Private Limited.

What is Swiggy tagline?

Swiggy has many taglines depending on its campaigns but the tagline "No Order Too Small" brought it a recognition from Star Re. Imagine Awards.

What is mission and vision of Swiggy?

Swiggy mission states, "Our mission is to elevate the quality of life for the urban consumer with unparalleled convenience. Convenience is what makes us tick. It's what makes us get out of bed and say, "Let's do this."

Swiggy Vision is "to be the leading local service provider in India. By offering a wide range of service alternatives, they hope to redefine ease for all users and become the country's easiest and most accessible platform."

What is Swiggy's Customer Care Number?

Swiggy focuses on dealing with a bunch of customer queries with its comprehensive chat support instead of attending to a bunch of customers and keeping them waiting on their phone lines. With Swiggy's easy chat support, a customer just needs to initiate a chat and initially answer the bot, which later redirects them to real advisors who solve their queries. Furthermore, the customers can also drop their issues at support@swiggy.in.

How did Swiggy start?

Swiggy was started by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, an IIT Kharagpur alumni who agreed to code for the platform. The company was founded in 2014, in Koramangala, Bangalore.

Is Swiggy running in loss?

Food delivery giant Swiggy (Bundl Technologies Private Limited) has reported its revenues for the financial year 2023 at Rs 8264.6 crore, an increase since the last financial year. The company further reported a net loss of Rs 4,179 crore. Though the losses have increased from Rs 3,629 crore, which Swiggy witnessed in FY22, Swiggy is certainly running in losses!

How can a restaurant partner with Swiggy?

A restaurant can simply mail Swiggy at partnersupport@swiggy.in and follow all the instructions.

Is there a minimum order value for ordering at Swiggy?

The short answer is No. If you want to order at Swiggy, you can do it without any further worries about any minimum order value that you must maintain.

What is the Swiggy affiliate program?

The Swiggy affiliate program is an initiative of Swiggy, which lets Swiggy users stand a chance to earn the highest payout.

What is the Swiggy Instamart website?

Swiggy Instamart doesn't have a new website. However, if the users want to visit Swiggy Instamart on the Swiggy website, then they just need to go to the Instamart section of the website.

What are some Swiggy alternatives?

Some of the Swiggy alternatives are:

• Zomato
• DoorDash
• GrubHub
• Postmates
• Deliveroo
• Faasos
• Box8

Is Supr Daily acquired by Swiggy?

Supr Daily, a milk delivery startup in Mumbai, was acquired by Swiggy in September 2021.

When did Swiggy start in India?

Swiggy was started in 2014 in India.