“Delivering happiness at your doorstep” – Swiggy
Don’t want to cook? Do Swiggy! Today Swiggy has become an on-the-go kitchen for all who can not cook due to their busy schedule or want to satisfy their craving at midnight. It is an esteemed online food delivery platform in India, catering to almost 1.45 million daily orders. Originally known as Swiggy Bundl Technologies Pvt Ltd, the platform was initially operated as an e-commerce solution. However, in 2014 the company took a rebranding decision and entered the online food delivery market, where it has emerged as a dominant player in the highly competitive online food delivery market.
As Swiggy’s growth continues to expand, accompanied by seamless technology, extensive restaurant partnerships, and effective logistics, the company managed to capture a significant market share. While the company’s success is evident in the public eye, there has been considerable growth in the unlisted market. This article will explain the factors behind Swiggy’s growth and explain why investors should buy Swiggy unlisted shares.
History Of Swiggy | From Scratch To Now
Founded in 2014 by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety, with a handful of restaurants in Bangalore. Today, the company has expanded to over 500 cities across India and is known as a successful brand in the online food delivery industry. In the most recent rounds in January 2022, the company’s valuation in the unlisted market was approximately $10.7 billion (Rs. 87,589.57 crores).
Considering the change in the food delivery industry, Swiggy also tried its hands at new avenues for growth. The company expanded its footprint into diverse categories, such as grocery delivery, cloud kitchen, and meat delivery. However, it decided to discontinue its meat delivery business and cloud kitchen venture. In the move to strengthen its position further, Swiggy made a significant acquisition in 2022 by taking over Dineout, a renowned restaurant, for Rs. 930 crores. This acquisition helped Swiggy’s business, enhanced customer experience, and solidified its industry presence.
Swiggy Business Model: Unveiling Revenue Streams And Strategies
Besides the exceptional services to customers and partners, the success of Swiggy lies in the robust and adaptive business model. The innovative approach of Swiggy to generate revenue is the commission that it charges from the partner restaurants for every order through the platform. This mutual deal allows Swiggy to earn a percentage of revenue generated by its restaurant partners.
In addition to commissions, Swiggy earns money from delivery fees. Customers are charged a fee based on the distance between the location and the restaurant and the value of their order. The price structure is designed considering several factors, such as the company’s revenue and customer satisfaction.
However, the revenue strategies of the company go beyond these fundamental components. The company has introduced Swiggy One, a subscription-based service that offers users exclusive benefits like free delivery and instant customer support. Additionally, subscribers can access Dineout, further helping Swiggy expand its revenue.
Showcasing The Powerful Market Presence Of Swiggy
Swiggy’s dominant position in the Indian food delivery market is a crucial factor behind its exponential growth in the unlisted share market. The company has significantly positioned itself as a market leader with customer-centric relationships, a user-friendly app, and vast renowned restaurant partnerships. Swiggy has witnessed significant growth in recent years. The company achieved a remarkable 2.2-fold increase in the previous year, reaching Rs. 5,705 crores. This impressive growth helped the company attract new customers and capture a greater place in the pre-IPO market.
According to the recent HSBC Global Research, Swiggy currently holds a significant position in the food delivery industry, holding 46% market value, surpassing its main competitor, Zomato, in the market share during October-December 2022. Further, the market valuation of Swiggy is expected to reach a value of Rs. 1,15,517 crores by 2026. This projected growth reflects a compound annual growth (CAGR) of 30.11% from 2021 to 2026.
Future Of Swiggy Unlisted Shares In The Grey Market
Swiggy is currently a privately-held company with unlisted shares available for trading. It is expected that the company will be going public soon. This opens up the opportunity for investors who want to buy Swiggy unlisted shares. Swiggy is actively preparing for an IPO which is expected to take place this year; however, an official date for the IPO announcement has yet to be released. Indicating the IPO preparations, Swiggy recently appointed three independent directors to its board.
Why Should You Invest In Swiggy Unlisted Shares?
Several factors contribute to Swiggy’s success in the unlisted market. If you plan to buy Swiggy unlisted shares considering the company’s future growth, you are not wrong. The company has a strong position in the market with notable financial performance. So it would be beneficial to invest in the Swiggy unlisted shares if you want to generate a good profit in the future.
