Connect with us

Business

How Swiggy became India’s fastest growing unicorn

Published

on

Swiggy began as a late arrival into a saturated market in 2014. Zomato, the food-tech giant, had chosen against expanding its delivery service. Swiggy recently raised $210 million at a valuation of $1.3 billion, marking a significant milestone in the three founders’ incredible journey.

Swiggy is the only consumer internet startup that has thrived since the hyper-funding boom of 2014-2015. Flipkart took more than six years to achieve the billion-dollar barrier, whereas Swiggy did so in less than four. It has outperformed both more established startups like Zomato and Foodpanda, as well as peers like Tinyowl, which eventually went bankrupt.

Sharp focus on logistics

Swiggy’s success reflects a larger trend in the startup ecosystem: organisations that have complete control over the customer experience value chain have won over pure marketplaces. Swiggy got a lot of things right, but its logistical operations are the driving cause behind its success. The company believed that the only way to break into the food delivery sector was to establish a large logistics network. Most food-tech companies are now operating their delivery fleets.

Swiggy is an Indian fast food delivery business situated in Koramangala. According to one of the company’s investors, the company’s client retention and repeat purchase rates were higher than any of its competitors while it was exclusively operating there. Swiggy has raised over a million in capital from investors including Accel Partners, who led the startup’s first institutional round of funding in 2015.

Catch the trend early

Swiggy was started in 2013 by Majety and Reddy, both BITS-Pilani grads. Bundle, a technology solution created by the duo, was created to address a major pain point in Indian e-commerce. Following brainstorming sessions, they decided to shelve Bundl in favour of attempting to break into the food-delivery industry. Swiggy has quickly become one of India’s most popular online food delivery businesses.

Swiggy, an Indian meal delivery business, was founded by Majety and Reddy. Rahul Jaimini, a former Myntra software engineer and IIT alumni, created the startup.

Build a complementary team

Swiggy co-founders Majety Reddy and Rajiv Reddy decided to form Bundl Technologies Pvt. Ltd in August 2014 as a tribute to their previous achievements. Majesty started his career as a trader at Nomura in London, but after a year, he quit and decided to tour the world. Rajiv had travelled around Europe and Asia and had come to the conclusion that he wanted to go it alone. The three men were able to bring their distinct expertise to the table, which was beneficial to them

Ensure it’s sustainable

Over the last four years, Swiggy, the fast-food delivery business, has faced numerous hurdles. The online investment boom that began in mid-2014 has come to an end, and some firms have begun to close their doors. According to regulatory filings filed with the ministry of corporate affairs, Swiggy’s losses increased 65 times in the fiscal year ended March 2016. Naspers sponsored an $80 million investment round for the startup in May 2017.

Road ahead

In India, the online meal ordering industry is predicted to triple in size to at least $2.5 billion in the next three years. With huge fundraising rounds, Swiggy and Zomato have so far led the way. Ola purchased Foodpanda and is developing a food-delivery business, while Uber launched UberEats last year.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Investor’s greed a problem, says Sankaran Naren

Published

on

Sankaran-Naren-on-Greedy-Investors-Marksmen-Daily

Gordon Gekko might have felt that greed, for lack of a better word, is good, but that isn’t always the case. The human urge to clamour for more has caught many an investor on the wrong foot and Sankaran Naren, Executive Director and CIO at ICICI Prudential, opines that investor greed is increasing day-by-day, which is a problem.

Naren Indian equity portfolios at ICICI Prudential, and has worked with various financial services companies, including Refco Sify Securities India and HDFC Securities. Delving further into the issue at hand, he says, “We are not seeing a problem in the macro or business cycle. But investor greed is a bigger problem. They think that there is only one asset class called equity and there is nothing called risk and that is the bigger problem rather than anything else in the macro or business cycle from an India point of view. In the world, all the way from 2012, people have not seen market corrections in the US. There people are used to investing in stocks and not worrying at all about market corrections except in 2018 December and 2020 March,” said Sankaran.

At this point, he believes that it is very important for investors to practice asset allocation and that they should make choices based on earnings connected to 2021 or 2022, investing in names which have steady operating cash flows, dividend yield, etc.

“The key learning from 2007 is that investors who invested in IPOs based on 2014 earnings were in for a disappointment. There is a fair amount of froth in many parts of the markets, particularly in new-age areas. Unlike Asia which has seen periodic market corrections, since 2012, US equities have barely witnessed a meaningful correction,” said the fund manager.

“Today the number of loss-making new age companies trading at stretched valuations is very high in the US compared with dividend-paying, cash flow-generating old economy-oriented companies,” he concluded, as he offered an investment roadmap for stocks and mutual funds to a rapt audience. 

Continue Reading

Business

Mercedes to slow expansion in India, opt for direct sales

Published

on

mercedes-to-opt-for-direct-sales

In what perhaps signal a shift in the often traditional ways of carmakers, Mercedes-Benz will not expand its dealer network in India beyond the current sales and service touch points as it transitions to a direct gross sales model. This will see the German titan assume responsibility for distribution, warehouse, retail, and even reductions. 

The company, which leads India’s luxury market, has committed Rs. 60 crore to the new retail concept, which will see sellers work as franchisee partners, largely responsible for product demos, model expertise, automobile supply, and after-gross sales. 

“The new direct-to-customer model – under the ‘Retail of the Future’ initiative — will help drive in transparency and ease into the whole system through installation of a robust online platform,” Mercedes India MD & CEO Martin Schwenk stated. 

Mercedes will announce a nationally-set cost under the new system, as it will own the whole inventory of vehicles and charge them directly to customers. The intriguing part is that dealers will not be permitted to provide any discounts to entice customers, and will instead be treated like franchise partners. Any incentive program can be implemented immediately by the company. 

This will be the first time an automaker completes direct gross sales with sellers and retailers – now referred to as franchise partners – who will be engaged purely for inquiries, customer service, supply, and repair help, earning a fee and incentive based on the volumes they sell. 

“We are present in around 50 cities, which is sufficient to take care of existing and new customers. We have no intentions to further increase or reduce this network.” said Schwenk. 

The firm says that the measure will guarantee higher dealer profitability by eliminating possibilities of any inter-dealer cut-throat worth warfare. The sellers may even profit by saving on the stock holding price that they presently have. Such expense usually runs into crores of rupees for every retailer, and carries a curiosity price and potential penalties if shares should not liquidate (bought) on time by them. This retail program has already been carried out in countries like Austria, Sweden and South Africa, and it will be interesting to see how it plays out in India. 

Continue Reading

Business

Swiggy to give 2-day paid monthly period leave to female delivery partners

Published

on

swiggy-gives-2-day-paif-leave-for-female-delivery-partner-marksmen-daily

Food delivery giant Swiggy has announced a two-day paid monthly period leave policy for female delivery partners, marking an industry first. Swiggy has over 1000 women on its delivery team, and has stated that since bringing on female delivery partners, it has been working to increase inclusivity and diversity across the platform. The company believes that providing a welcoming environment for women will inspire them to explore delivering with them.  

Other initiatives to deepen inclusivity include enabling access to vehicles, access to hygienic restrooms, and implementing safety measures for female delivery partners. Mihir Shah, Vice President of Operations at Swiggy, said discomfort from being out and about on the road while menstruating is probably one of the most underreported reasons why many women don’t consider delivery to be a viable gig.  

“To support them through any menstruation-related challenges, we’ve introduced a no-questions-asked, two-day paid monthly period time-off policy for all our regular female delivery partners,” said Shah.  

SoftBank-backed Swiggy has approximately 200,000 delivery partners, with about 1,000 of them being female. Swiggy hired its first female delivery partner in Pune in 2016. “Since then, we’ve been working hard to promote inclusivity and diversity across the platform, with a goal of increasing the number of female delivery partners in Swiggy’s delivery fleet,” Shah added.

“Swiggy understands the pain of a woman in the field and period leave will definitely motivate more women to choose this platform and be independent,” said Komal, a delivery partner from Chennai.  

Last year, rival company Zomato announced a period leave policy, allowing female employees to take up to 10 period leaves in a year. These are available to employees and not the gig workforce. It has, however, taken steps to have a more inclusive gig workforce. In June this year, it said it has set a goal of reaching 10 percent female delivery partners by the end of 2021 starting with Bangalore, Hyderabad, and Pune. 

Continue Reading

Trending