Swiggy Case Study: History, Valuation, Product, Services & Growth
Swiggy is India’s largest and most valuable online food ordering and delivery platform. Founded in 2014, Swiggy is based out of Bengaluru, India, and, as of March 2019, was operating out of 100 Indian cities. In early 2019, Swiggy expanded into general product deliveries, under the brand name Swiggy Stores.
In September 2019, Swiggy launched instant pick up and drop service Swiggy Go. The service is used to pick up and drop off a diverse array of items, including laundry and document or parcel deliveries to business clients and retail customers.
HISTORY
In 2013 two founders, Sriharsha Majety and Nandan Reddy designed an e-commerce website called “Bundl” to facilitate courier service and ship goods within India. Bundl was quickly paused, and they moved into the food delivery market. At the time, the food delivery sector was in turmoil as several notable startups, such as Foodpanda (later acquired by Ola Cabs), TinyOwl (later acquired by Zomato), and Ola Cafe (later closed) were struggling. Majety and Reddy approached Rahul Jaimini, formerly with Myntra, and founded Swiggy and parent holding company Bundl Technologies in 2014. The company built out a dedicated delivery network and grew rapidly, primarily driven by the focus on logistics and locking in key resources.
VALUATION
India’s largest food delivery company, Swiggy, has raised $113 million in a Series I funding round, according to a report by TechCrunch.
The funding round was led by Prosus Ventures, a venture capital fund that caters to food delivery startups. The funding coincides with Zomato acquiring Uber Eats’ India business. Meituan Dianping and Wellington Management Company also took part in the funding round.
Swiggy now has a valuation of $3.6 billion, which is a little higher than its previous valuation of $3.3 billion. So far, Swiggy has raised $1.57 billion.
Swiggy Co-Founder and CEO Sriharsha Majety said the company is going to use the money to invest in “new lines of business” like more delivery options besides food, as well as cloud kitchens. It wants to be on a “sustainable path to profitability.”
Prosus Ventures invested in Swiggy three years ago and since then has become the food delivery company’s biggest investor. In December of 2018, it invested over $700 million in Swiggy.
PRODUCT & SERVICES
Online food ordering and delivery service Swiggy has forayed into on-demand product deliveries from local stores, in a bid to diversify its delivery services beyond food. Called Swiggy Stores, the services will be available within the Swiggy app and will deliver products from physical stores across various categories like fruits and vegetables, kiranas and supermarkets, florists, baby care, health and supplements, pet care stores, meat stores, and pan shops among others in an hour or less. Swiggy will use its growing delivery fleet of 1.25 lakh active delivery partners to make product deliveries, the company said in a statement. ET had first reported in April 2018 that Swiggy was readying a hyperlocal delivery product. The Bengaluru-based delivery platform was looking to enable the buying and delivery of products from any store in the city including electronics, groceries, flower shops, and gift shops.
Marketing Strategy
Swiggy’s marketing strategy focuses on building brand awareness and user acquisition. The company has invested heavily in advertising campaigns across various mediums such as television, radio, print, and digital platforms. Swiggy has also launched referral and loyalty programs to encourage customers to invite their friends to use the platform and offer rewards to frequent users.
User Experience
Swiggy’s app and website offer an excellent user experience, with a user-friendly interface, intuitive navigation, and a vast selection of restaurants and dishes to choose from. The platform’s advanced search and filter options make it easy for users to find the right restaurant and dish based on their preferences. Swiggy’s delivery fleet also ensures that orders are delivered quickly and efficiently, providing customers with a seamless experience.
Growth and Expansion
Swiggy’s growth and expansion have been rapid, with the company expanding its presence across India’s major cities and towns. In addition, the company has also expanded its offerings beyond food delivery, launching Swiggy Go, which offers on-demand pick-up and drop-off services for a variety of items, including groceries, documents, and laundry. The company has also expanded its services to include Swiggy Stores, which offers customers a wide range of products, including groceries, health and wellness products, and pet supplies, among others.
Challenges
Despite its rapid growth and success, Swiggy faces several challenges, including intense competition from other food delivery platforms such as Zomato and Uber Eats. The company also faces regulatory challenges in various cities, with some municipalities imposing restrictions on food delivery services.
Conclusion
Swiggy’s success can be attributed to its innovative business model, user-friendly app, excellent customer service, and strategic marketing efforts. As the company continues to expand its offerings and presence across India, it will need to navigate various challenges, including regulatory issues and competition from other players in the market. However, with its strong brand and loyal customer base, Swiggy is well-positioned to continue its growth and expansion in the years to come.
