About Swiggy
Swiggy is a food ordering and delivery platform that operates in India. It was founded in the year 2014 and has its headquarters in Bangalore, India. It is a part of the Online food ordering and Q-commerce industry. As of 2021, Swiggy operated in 500+ Indian cities.
Think food, Think Swiggy.
No customers go hungry.
Swiggy Karo, Phir Jo Chahe Karo!
Sriharsha Majety
Growth is about learning and evolving with the different variables and moving parts. — Sriharsha Majety
Sriharsha Majety is basically from Andhra Pradesh. His father used to own a restaurant and his mother was a doctor. He is 34 years old. He did his MSc in Physics + B.E in EEE from BITS Pilani. He later graduated with an MBA in Finance from IIM Kolkata. He is a former Co-Founder of Bundl Technologies which has been re-branded to Swiggy.
Nandan Reddy
Nandan Reddy is an alumus of BITS Pilani. He co-founded Bundl with Sriharsha Majety. Nandan Reddy has also worked at Intellecap as an Associate — Business Consulting, IDinsight as an External Consultant, Zurna as a Founding Partner and Galla as Founder.
A business must be a mixture of technology + offline jobs.
Rahul Jaimini
Rahul Jaimini is an alumnus of IIT Kharagpur. He worked at Myntra and has worked in multiple companies before he executed his plan with Sriharsha and Nandan. He is one of the co-founders and CTO at Swiggy. He quit Swiggy a few years back and joined Pesto Tech.
How did it all start?
In August 2013, Sriharsha Majety and Nathan Reddy Founded Bundl — a company connecting courier companies across India. In 2014, Bundl shut down, as things didn’t go smoothly.
The year 2014 they marked the start of Swiggy. The three co-founders developed the concept of ‘Hyperlocal Food Delivery’. They began setting their services up first in Bengaluru, India and claimed to deliver the food within 40 minutes. They started with 25 delivery restaurants and 6 delivery executives.
Growth of Swiggy over the years
2014: Started with delivering 35 orders in the first month.
2015: Investment of $2 million dollars by Accel and SAIF Partners.
2016: Raised $15 million dollars from new financial specialists, Bessemer Venture Partners and Harmony Partners.
2017: Saw the introduction of Cloud Kitchen, Swiggy Pop, The Bowl Company(TBC), and Homely. Milestone of 5 million deliveries a month achieved. Won the startup of the year award and raised $80 million from Naspers and existing funders.
2018: Swiggy launches Swiggy Super and Supr Daily. Raised $1 billion by the end of the year. Swiggy becomes India’s fastest startup to turn unicorn.
2019: Spread across 500 cities from 100 cities in just one year. Swiggy cloud kitchen served a record 1.5 million monthly orders.
2020: Achieves a milestone during the pandemic and released a report that a Biriyani was ordered every second on Swiggy. Received funding of $43 million in series-I round funding. Swiggy launches Swiggy Instamart, Swiggy Genie, and Health Hub.
2021: Swiggy announces Phani Kishan as the co-founder. Valuation pegged at $5 billion dollars. Launch of Swiggy One.
2022: Losses widened to $557 million dollars.
2023: Revenue grows 45% upto INR 8,265Cr
Financial Reports for FY23
The goal of Swiggy
The primary goal of Swiggy was to bridge the gap between the restaurants and the users who wish to order food lovers.
Target Audience
Anyone who wishes to order food from nearby restaurants without stepping out of their home. It majorly focuses on working professionals, college students, E-Commerce savvy, and people who are living away from family.
How it works
It works just like purchasing any item on an E-Commerce platform.
- The customer gets to see the restaurants that are available to deliver food in the nearby area.
- Along with this, they have additional options of filtering out their food choices based on the cuisine they like, ratings, etc.
- To order one/more food items, just add them to your cart in the Swiggy app.
- Finally, select the payment method and proceed with the payment.
- Once the order has been placed, Swiggy keeps you updated with track of your order, till it has been delivered to you.
Why is it successful?
Swiggy is successful due several reasons. Because it is the best at what it does i.e deliver good food to the customer properly and securely. Two major reasons which contributed to Swiggy’s success were:
- Being open enough to mould itself according to the needs of the public.
- Being ready to experiment.
Challenges
- Shifting customer preferences
- Unstable market prices
- Adhering to food quality standards
- Managing customer expectations
- Improper food handing
- The threat of big players.
- Logistics Dilemma
How is it different from the rest?
Zomato is one of the main competitors of Swiggy. Swiggy provides some extra features to its customers that Zomato does not. Let us take a look at those.
Swiggy Instamart: on-demand grocery deliveries
Swiggy Genie: Pickup or Drop any item from anywhere in the city
Understanding its business model
The business model of Swiggy is a freemium business model where the communication is done from business-to-consumer (B2C).
Future Plans
Swiggy tends to capture and compete with some of the best food delivery partners in India like Zomato. It is now looking to introduce a new loyalty program, increase the cost-efficiency of its service, prepare for its IPO, and make Swiggy known to other parts of the world by expanding globally.
Key Partners
Key partners are the relationships that you have with other business, governmental, or non-consumer entities that help your business model work. The prime key partners of Swiggy are the restaurants/shops listed on the app and delivery suppliers.
Key Activities
Key activities consist of the activities that lead the company towards its goal with ease. Some of the key activities of Swiggy include hiring delivery partners, tech startup and running costs, managing tech infrastructure, and customer acquisitions.
Key Resources
Key Resources act as a building block describing the most important assets needed to make a business model work. Technology, Freelance delivery providers, and partnerships with local providers act as key resources of Swiggy.
Value Propositions
Value Propositions are the service features or innovations that make their product look attractive to the customers. Swiggy makes itself appealing through email and social media marketing, offering deals and discounts to its customers on special events, and continuously improving customer engagement and satisfaction.
Customer Relationships
Customer Relationships describe the ways that a company will engage with its customers to improve the customer experience. Swiggy builds its customer relationships through the customer support chat, social media, and feedback systems.
Customer Segments
Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways.
- Under demographic segmentation, Swiggy targets its customers based on age, value and income.
- Behavioural segmentation
- Loyalty status
Channels
Channels are through which the company provides its service to the customers. Swiggy provides its service through its mobile application, website, and digital marketing.
Cost Structure
Cost structure refers to the types and relative proportions of fixed and variable costs that a business incurs. The expenses include:
- Payroll expenses
- Costs to maintain application and website development
- Advertising and Marketing Expenses
- Dispute-related returns, refunds and other expenses
Revenue Streams
A revenue stream is a source of revenue for a company or organization. In business, a revenue stream is generally made up of either recurring revenue, transaction-based revenue, project revenue, or service revenue.
Delivery Charges: A small amount of delivery fee is applied on every order placed by the customer.
Ads: In-build advertisements in the app.
Commissions: A commission of 15% to 25% is charged on every order which is to be paid by the restaurant.
Swiggy Access: A kitchen incubator business by Swiggy where it provides a network of ready-to-occupy kitchens to its restaurant partners.
References:
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