The trend of e-commerce platforms is at its peak and so as the food ordering ecosystem. It’s the diversity of services, cuisines and huge demand and interest of the people that has led to such an exponential growth in this industry. Swiggy is one of the key players in this market and is giving tough competition to others by introducing the quick serving scheme with minimal delivery charges.
Swiggy, a Bengaluru based food ordering and delivery Start-up was founded on Aug 1, 2014, by IIT-Kharagpur alumnus Rahul Jamini and BITS-Pilani alumni Nandan Reddy, and Sriharsha Majety.
Swiggy currently rules over eight major cities in India with more than 9000 restaurants on its platform, which was only possible due to the funding it received from various investors over the years. It raised $465.5 Million in 7 series of funding.
- It received an initial Series A funding of $ 2 Million on April 3, 2015, by Accel and SAIF partners.
- It raised a funding of $16.5 Million in Series B funding on June 4, 2015, invested by Norwest Venture Partners.
- It raised $35 Million in Series C funding on Jan 18, 2016, led by a group of 5 investors namely, SAIF partners, RB Investments Pte. Ltd., Norwest Venture Partners, Harmony Partners.
- It again raised $7 Million in Series C funding on May 10, 2016, led by Norwest Venture Partners.
- It raised a funding of $15 Million in Series D funding on Sept 19, 2016, led by Bessemer Venture Partners.
- It raised a funding of $80 Million in Series E funding on May 30, 2017, invested by Naspers.
- It received a funding of $100 Million in Series F funding on Feb 8, 2018, again led by Naspers.
- It has recently received a funding of $210 Million in Series G funding on June 21, 2018, by DST Global and Naspers.
Swiggy is different from its competitors as it has its own fleet of delivery boys who are equipped with smartphones and the Swiggy app, which helps the user to track their delivery through routing algorithms.
It has two major revenue schemes.
- It takes commission from the restaurant from where the food is ordered and serves as a lead generator and delivery partner.
- It charges 20% of the delivery cost, which is much higher as compared to a normal of 8 to 15% and the delivery time is pretty less too.
- As it has its own fleet of delivery personnel, there is no minimum cost for ordering food. You can even order food worth Rs 50 and charges a delivery fee from the customer. On orders which are high in amount, Swiggy just takes the commission from the restaurants.
Food and restaurants sector in India is very vast and provides ample opportunities for setup and growth as margin in this sector is quite high. Some of the competitors of Swiggy, in this sector of trade, are Zomato, Foodpanda, UberEats, innerchef, dineout and others, who too have a good foundation and firm grip on the market. Zomato has emerged to be the biggest competitor after it acquired the delivery startup runnr.
Swiggy focuses mainly on delivering and therefore the restaurants don’t need to bother about delivering the orders, which results in better quality of service. Whereas other competitors focus mainly on taking orders and the parcel is delivered by the restaurant itself.