How Does Swiggy Make Money?

There was a time when it seems like magic that you can have the food of your choice with just a single click. Not anymore with unicorns like Swiggy!

Swiggy headquartered in Bengaluru(India) is basically a restaurant aggregator that lists down restaurants on their app. They take orders on their behalf and finally deliver them to the end customer.

Index:

Prelude:

Swiggy was started in 2014 by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety. In 2013 Nandan and Sriharsha (Alumnus of BITS Pilani) started a logistic company Bundl which connect SMEs to courier service provider. Later, they approached Rahul who works at Myntra(An online fashion retailer) to join them on a hyperlocal logistics startup in the restaurant sector and finally came up with Swiggy.

Revenue Streams:

Swiggy makes revenue on a commission basis, they take about 10-20% commission on the restaurant sales. Their other revenue sources include delivery charges from the end customers and also from the advertisement. The restaurant promotes itself based on some keywords on their website/App which also adds up revenue for Swiggy.

Several other programs like Swiggy pop, Swiggy Access, Swiggy Daily, and Swiggy Super got implemented to open new sources of revenue.

Swiggy is now trying to expand its wing in the Indian market to get a competitive edge over its competitors Zomato, Uber Eats, and Food Panda. For that, they have introduced many new programs and plans.

Swiggy Super:

Swiggy Super is a membership program for Rs.49/month and Rs.129/3months. This program also offers unlimited free delivery for all orders above Rs.99 and also has the perks of no surge fee during high demands.

Swiggy Pop:

Swiggy pop offers single-serve meals within 30-35 minutes. Pop offers menus of single-serve meals within the range of Rs 99 to Rs 200 from popular restaurants.

Swiggy Access:

Swiggy Access is a central kitchen facility for restaurants that started at the pilot scale in Bengaluru(India) at the end of 2017. They have also launched their private label restaurants like The Bowl Company and House of Dabbas.

Swiggy Daily:

Swiggy Daily is introduced to provide homestyle-cooked food on a daily basis to its customers. This will also help them to increase the loyalty of their brand among customers.

Swiggy Stores:

Cost Structure of Swiggy:

Payroll for its employees in the office and delivery partners.

Website/App Server and hosting charges.
Advertising and marketing cost.
Returns, refunds, and other costs.

Office infrastructure costs.

Revenue and Profits:

For the FY17, Bengaluru-based Swiggy had revenue of 19$ million(133 crores) on the loss of 29$ million(205 crores). Later in FY18, they made a revenue of 63$ million(442 crores) on the profit of about 7$ million(48.6 crores).

In FY2020 Swiggy make losses of Rs 3,920.4 crore and made a total expense of 6,864.1 crores.

Currently, Swiggy made about 22-25 million deliveries a month and expanded in more than 40 cities in India.

Valuation:

Towards the end of 2018, Swiggy was close to the valuation of 3.3$ billion (23,000 crores) after about 9 rounds of funding.

Source: Crunchbase

Swiggy is backed majorly by Capetown(S.A) based Naspers.

Facts and Updates:

In FY2020 Swiggy added more than 100k restaurants and 200k+ delivery partners.
In 2020 Swiggy stopped its grocery delivery service which they recently started along with its food delivery service.
In FY2020 Swiggy make losses of Rs 3,920.4 crore and made a total expense of 6,864.1 crores.

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FAQs

Who founded Swiggy?

What's the revenue and profit for Swiggy?

For the FY17, Bengaluru based Swiggy had revenue of 19$ million(133 crores) on the loss of 29$ million(205 crores). Later in FY18, they made a revenue of 63$ million(442 crores) on the profit of about 7$ million(48.6 crores).

What's the valuation of Swiggy?