Billion Dollar Unicorns: Swiggy Enters The Club With Massive Funding

According to RedSeer Consulting, India as a market holds tremendous potential for food delivery apps with the sector recording a 125% increase in order volumes. A huge beneficiary of this trend is Indian food delivery startup that recently entered the Billion Dollar Unicorn club.

Swiggy’s Offerings

Swiggy was founded in August 2014 by Nandan Reddy, Sriharsha Majety, and Rahul Jaimani in Bangalore. It was inspired by the thought of providing the urban foodie with a food ordering and delivery solution from the best restaurants in the neighborhood. It has its own exclusive fleet of delivery personnel who pick up orders from restaurants and deliver it to customers.

Swiggy’s main value proposition is that it has a no minimum order policy on any restaurant and accepts online payments. Today, it has about 40,000 restaurants on its platform, up from 5,000 in 2016. It currently operates in 31 cities including the major cities and tier-2 cities like Dehradun, Jaipur, Chandigarh, Kanpur, Vellore, Mysore, Nagpur, Pune, Pondicherry, Nashik, Tirupur, Vellore, Vijayawada, and Vizag. Swiggy has a fleet size of about 55,000.

Swiggy has about 14 million monthly orders and 0.5 million daily orders. In August 2018, Swiggy had over 19 million orders, followed by Zomato with over 12 million, UberEats with over 3 million, and FoodPanda with over 1.5 million.

Swiggy’s Expansion

In Novemer last year, Swiggy launched Swiggy Access in Bangalore. The delivery-only Access kitchen was shared by Swiggy’s own private brands, including The Bowl Company, House of Dabbas and Punjabi Rasoi as well as two of its restaurant partners Leon Grill and Keventers.

Through the Swiggy Access program, restaurant partners are charged a higher than normal commission fee but restaurants leading the bulk of order volume on the Access model get lower commissions. However, they still end up saving 25% operation costs as Swiggy does not charge any rent for the kitchen space. Only signature dishes are available at the Access kitchens and the restaurants are curated by Swiggy based on customer feedback, cuisine score, and quality of supply score.

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