Swiggy is an Indian multitasking food delivery app. Initially, Swiggy started a food delivery business like Zomato, but over time, Swiggy introduced its quick commerce or grocery delivery service and porter service called Swiggy Genie. In short, Swiggy is trying to give us comfortable delivery services. Swiggy was founded in August 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini.
History of Swiggy
Swiggy originated from Bengaluru, where most Indian startups started.
Initially, the founders operated a startup called Bundle Technologies, but it was not working well. Then, they modified their business model and focused on the food delivery business only, and that’s how Swiggy was started.
The management of Swiggy found out the loopholes and needs of the current generation and upgraded their app with better services, cost, and delivery timing and that was the reason Swiggy became so popular in less time.
During 2017-18 Swiggy extended its services to Delhi, Hyderabad, Mumbai, and Pune and started grabbing the smooth cupcake market of the food delivery business.
During this period Swiggy and Zomato became two major players in food delivery businesses in India and they positively enjoyed the competition and upgraded their services like real-time tracking and cashless payment services to become no.1 in the food delivery segment.
To beat the competition Swiggy burned mostly cash in aggressive marketing strategies and heavy discounts and they successfully gained customers through this.
Swiggy raised $210 million from Naspers and DST Global and became a unicorn in just 4 years.
During 2019-20, Swiggy tried different ideas to attract more customers
Swiggy Stores for grocery and essential services and Swiggy one for on-demand delivery services.
Swiggy POP for affordable single-meal
Swiggy Daily for subscription-based tiffin series
All these services have not performed well
During COVID-19 19 Swiggy faced huge struggles and financial crises but at the same time, it’s a golden opportunity for the delivery business.
After COVID-19, Swiggy launched Swiggy Instamart in collaboration with Swiggy dark stores for 10-15 min delivery services and it became successful,
In 2022, Swiggy acquired Dineout to expand its services in the Dineout business, and in the same year, Swiggy raised $700 million, reached its market cap of $ 10.7 billion, and became the market leader in food delivery services.
[ History of Zomato, Click To Know More ]
In 2021 Zomato’s biggest rival Swiggy launched its IPO and raised multifold funds. The manager of Swiggy had planned its IPO a long time ago but has not been presented yet for some unknown reasons, we are expecting to launch the Swiggy IPO by the end of 2024.
Can we go for Swiggy IPO?
As of 2 October 2024, the valuation of Swiggy is $13.3 Billion, estimated by Invesco, a US-based assets management firm.
As per recent data, Swiggy has almost 45% market share in the food delivery business and a 32% market share in quick commerce delivery services,
After the bumper response received by Zomato IPO, we are expecting a good listing gain in Swiggy IPO too but we have to wait till management discloses the offer price for IPO. which will be the main game changer.