The month has been happening for online food ordering and delivery platform Swiggy. From elevating Phani Kishan (Ex-Vice President – Strategy & Investment) as a co-founder to raising $1.25 billion funding – the company has been in constant limelight amid arch-rival Zomato going IPO.
Total 1.25 Billion Dollar Fundraise
With an $800 million investment from Amansa Capital, Falcon Edge Capital, Goldman Sachs, Qatar Investment Authority, etc., and a hefty $450 million investment from SoftBank, Swiggy is now valued at $5.5 billion.
Days after Zomato’s initial public offering (IPO) was subscribed more than 38 times, Swiggy bagged spectacular attention from investors across the globe. This is all because of Swiggy’s YoY growth of more than 100% since 2018. In FY2019 alone the company’s revenue was 176% over the previous year.
Swiggy to Storm into Grocery Delivery Business
According to Sriharsha Majety (CEO, Swiggy), with the recent fundraise, the Foodtech giant will aggressively expand its non-food delivery segment such as the online grocery delivery platform – InstaMart. Amid COVID, the online food delivery company reacted to the changing situations with alternate business plans. As a result, they launched InstaMart in August 2020 to further penetrate into the non-food delivery segment of their business. The company also runs a subscription-based bread and milk delivery platform – SuperDaily.
Interesting to See How Swiggy Expands the Non-Food Delivery Segment
The non-food delivery segment has great potential. Especially, during the tough times of pandemic, when everything was shut and mobility was severely restricted on health grounds, the pickup and drop services – Swiggy Genie helped many. So, in the coming days, Swiggy is going to branch out in both the food and non-food delivery segment competing with the likes of BigBasket and JioMart.
Maybe the company will follow the 1960s’ Walmart-inspired move of taking the metropolitan business to the smaller towns and becoming the only big player there. The company might seriously invest in technology adaptation, process optimization, and setting up operations in the tier-2 tier-3 cities. A lot to be discussed and referenced in the coming future.
