Swiggy is India’s largest online food item ordering & delivery chain, it also tops the chart of India Unicorn startup lists. It’s a Bangalore based startup started in 2014, and as of now, it’s expanded to more than 100 Indian cities. Swiggy propelled quick pick and drop food delivery applications to make the life of people simpler. It gives a single window to request from an extensive variety of restaurants along with an entire food entering and conveyance arrangement that connects neighbourhood eateries with foodies.
How SWIGGY Started?
Swiggy came into existence in the year 2014 when two BITS Pilani graduates, Sriharsha Majety and Nandan Reddy came up with the concept ‘Hyper local food delivery’. They get acquainted with Rahul Jaimini, who rejuvenated this vision with a principle site.
In August 2014, Swiggy started activities by joining a couple of eateries in the city Koramangala in Bengaluru. Following that, they started conveying food to their clients in just 40 minutes.
Soon after this, in May 2015, Swiggy raised its initial round of financing and came up with the application. Through this innovative app, one can get incredible food right to their doorstep and evolve their living standard.
Services offered by Swiggy
As the food ordering and delivering food giants, they are now growing more digitally by launching various platforms and increasing their services because of the conditions like “ when you don’t want to go out to the restaurant, then they bring the restaurant to you.
Swiggy has multiple offerings and services for its clients- Swiggy Pop, a single-serve meal delivery service in 30-35 minutes. A selection of items like Indian Thalis, bowl meals, biryanis, burgers, and Asian combos is included in the Swiggy POP menu. All the single-serve meals that come between ranges Rs.99-200 will be delivered in a short time.
The other categories of services that come under Swiggy are Swiggy Cloud, the cloud kitchen service and Swiggy Stores.
Recently, Swiggy has just launched a platform for partners known as ‘Swiggy Partners’ where they can request for the premium packaging material. It will help them get the service at a reasonable price and will ensure a better customer experience.
The start-up initially started with delivering basic food items and perishables from nearby stores. In September 2019, it propelled a new service ‘Swiggy Go’ (very Similar to Dunzo Business Model) which is used to pick and drop a wide array of items such as clothing, forgotten keys, documents, or deliveries to business persons and other customers. Swiggy Go is currently accessible just in Bangalore, however, said it will expand the service in more than 300 urban cities in a year or so.
Swiggy Funding Rounds
In 2015, Swiggy started pulling investments from various organizations. The very first investment was by Accel and SAIF Partners which is $2 million. In the following year, Swiggy managed to raise $15 million from new financial specialists, Bessemer Venture Partners and Harmony Partners.
In the next year 2017, Swiggy raised an additional $80 million from Prosus & Naspers and again $100 million from Prosus & Naspers in 2018.
In the year 2018, they raised a funding of $210 million from DST Global, Prosus & Naspers. By investing a $1 Billion by naspers with the total stake of 40.6% of the whole in Swiggy, and become the largest stakeholder in Swiggy.
Recently in 6 April, 2020, they received the $43 million in series-I round funding.
Swiggy Business Model: How Swiggy earns?
Swiggy is growing its business at a rapid scale and the revenue generation model of the company is simultaneously expanding.
Delivery Charges: The main sort of income stream Swiggy acquired is from its customers. The company collects delivery charges from customers on the order that costs less than their minimum order of Rs. 250. A charge of 20 to 40 rupees is charged on per order.
Commissions: Swiggy acquires another major part of the revenue stream from commissions. It collects commissions from restaurants to generate sales leads and to deliver their food items through Swiggy’s application. Restaurants have to pay 15% to 25% on every order placed from Swiggy’s site.
Advertisement: Swiggy also procures advertising income in different ways. It shows advertisements of different restaurants on its app and charges address cost to get them promoted in various regions. Also, some restaurants and cafes pay premium rates to Swiggy to get prioritised on the app from the list of accessible eateries.
Swiggy Access: The start-up has come up with the most innovative idea i.e. cloud kitchen idea. It gives its restaurant partners a ready-to-use kitchen area in those zones where they don’t work. It brings food closer to its customers and empowers restaurants to set up their kitchen in new areas. Swiggy expects to get 25% of income from Swiggy access facility and incorporated 30 partners with 36 kitchens.
Swiggy earns subsidiary income as well by collaborating with different financial institutions such as Citibank, HSBC and ICICI Bank. It gives both the parties mutual benefit. It permits clients to get few charge card offers from these organizations.
Swiggy has joined hands with the fastest-growing fast-food outlet, Burger King, Goli Vada Pav, Cafe Coffee Day for giving delivery services.
It additionally has cooperated with Google Local Guide to encourage client reviews and with Sodexo to empower clients for paying through metal cards.
It banded together with Indifi Technologies to encourage a financing program for restaurant partners.
Swiggy launched its own payment wallet ‘Swiggy Money’ in partnership with ICICI bank. The customers who don’t possess a bank account with ICICI can also avail the benefits of these services.
Swiggy Most Popular Digital Campaign
Swiggy initiated a new promotional campaign and explored a novel food combo. The campaign has a slogan ‘Ghar ka Khana, Saath Mein Thoda Swiggy’! The company draws this idea by observing that Indian purchasers like to supplement their home-prepared the food with some ordered dishes from Swiggy.
Swiggy makes the customer eating experience delightful where shoppers can complement their preferred food with the food they love ordering from outside. The Start-up advertised the campaign through TV plugs and digital platforms and tried to connect emotionally with their customers.
More about Swiggy
Swiggy currently stands with a net worth of 3.6 billion at the end of the financial year 2020.
From 2019, Swiggy underwent its expansion from 17 cities to 245 locations and is planning to expand it furthermore.
Another vision of the company is the transformation into an AI (Artificial Intelligence) first product.
Swiggy recently acquired the Kint.io on 4 February, 2019,
Swiggy also made the two investments in the Fingerlix with the total amount of $143 million.
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