Swiggy is one of the fastest growing startup in India. Swiggy yesterday raised $210 million at $1.3B In this series we are analyzing the business model of swiggy , how it started and what it is doing to stay ahead of its competitors. So, read along.
1. How Swiggy started?
Swiggy was founded almost 4 years back in Aug 2014 in Banglore by Nandan Reddy and Sriharsha Majety, both BITS Pilani Alumni who were later joined by Rahul Janimini, an IIT Kharagpur alumni to take on technical work. Prior to Swiggy all there were food ordering services, but Swiggy introduced ordering & delivering food at your door steps. In less than a year they raised over $2M.
2. Swiggy revenue model?
Delivery charges of Swiggy for orders less than Rs 250 if Rs 30-40. But for higher order is high as 30%, so for order of Rs 1000, you pay about Rs 1300. So, let’s talk some maths here:
Avg. number of orders in a day: 1,00,000
avg. order price: Rs 250
one year revenue: multiplying the factors and diving by 65 to get in dollars is roughly $21M
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3. Major challenges ahead & competitors
Zomato started in 2008 and Foodpanda in 2012 are swiggy’s major competitors. Swiggy has around 200K downloads which is half of Zomato(around 400K). Swiggy is losing millions of dollars every month, and to generate profit in delivery services from which even Amazon couldn’t is a task in itself!
So, this was ours brief Analysis on Swiggy, an Indian Startup ready to take on the world!