Swiggy is an Indian food delivery app, founded in 2014 and now is loved across the nation. Based in Bengaluru, it has been working to transform the way people buy food. The journey of this food delivery startup has been full of ups and downs, like all other startups, so let’s just dive into its story and read about it!
The Birth of an Idea
Swiggy was founded by three BITS Pilani graduates—Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Initially, they set out to create a logistics business but soon realized the potential in food delivery, a market with immense growth opportunities. They started operations in Koramangala, Bengaluru, by partnering with local restaurants to deliver meals straight to people’s doors. And the people loved it, the response was pretty great.
The Path to Success
The success was not an overnight thing, it took a lot of effort, and after so much effort put into it, the company is doing really well. The app now has over 5 million downloads and offers a vast variety of cuisines. The technology behind the brand makes it easy for users to browse menus, place orders, and track deliveries in real-time. Constant improvement through customer feedback has been the best part in refining of the platform.
They didn’t stop at food delivery. In 2019, they introduced Swiggy Go, a pick-up and delivery service, that expanded into package delivery, groceries, and other essentials. This move into a broader logistics platform allowed Swiggy to meet the growing demands of its users and further broaden its market reach. In April 2020 it was renamed as swiggy genie.
How Swiggy Earns
Its revenue comes from multiple streams, all of which have seen significant growth. In FY23, its revenue from services rose by 39% to ₹4,786 crore, while its earnings from food and traded goods increased by 58%, reaching ₹3,352 crore.
The company’s income is derived from the following main sources:
- Delivery Charges: Customers are charged a fee for deliveries under ₹250.
- Restaurant Commissions: Swiggy earns a percentage of each order placed through its platform, ranging between 15% and 25%.
- Advertising: Partner restaurants can pay for better visibility on Swiggy’s app, helping them attract more customers.
- Cloud Kitchens: Through its Swiggy Access program, it offers kitchen spaces to restaurants, enabling them to operate without having to open physical outlets.
It has also made payments more convenient with Swiggy Money, a digital wallet that allows users to pay seamlessly through the app.
Connecting with Customers
The venture has mastered the art of connecting with its audience through fun, engaging marketing campaigns. Its slogan, “Swiggy Karo, Phir Jo Chahe Karo” (Order from us, Then Do Whatever You Want), strikes a chord with its users by highlighting the convenience of food delivery.
Another campaign, “Ghar ka Khana, Saath Mein Thoda Swiggy” (Home-Cooked Food with a Little Swiggy), emphasizes the idea of balancing home-cooked meals with the occasional indulgence from Swiggy. These campaigns reflect their playful and relatable brand personality, which has helped it build a loyal customer base.
The Road Ahead
India’s food delivery market is expected to reach $43.78 billion by 2024, and the brand is well-positioned to tap into this growth. With a presence in over 100 cities and an ever-expanding array of services, it continues to be a dominant player in the food delivery industry, constantly adapting and evolving to meet customer needs. The company is planning to go public soon, however, the unlisted price of it is around Rs 515 per share. Being in the news a lot lately for the wait for IPO approval from SEBI.
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