How Swiggy, which delivers orders in as little as 13 minutes, achieved the second-largest quick commerce market share in India, with over 600 'dark stores' and a massive number of gig workers
Swiggy, a company that started out as a food delivery service and has risen to become India's second largest player in the 'quick commerce' field, which delivers food and daily necessities instantly, will hold an initial public offering (IPO) on November 13, 2024. Bloomberg summarizes how Swiggy has expanded its market share in India.
How Swiggy Beat Amazon to 13-Minute Grocery Deliveries in India - Bloomberg
Swiggy's public debut will test India's appetite for $1B+ IPOs | TechCrunch
https://techcrunch.com/2024/11/11/swiggy-listing-to-test-india-appetite-for-1-billion-plus-ipos/
Founded by Sriharsha Majeti in 2014, Swiggy started its food delivery business with just $13,000 (approximately 2 million yen). It grew steadily, attracting 50,000 users in its first year, and has successfully raised at least $3.6 billion (approximately 550 billion yen) since 2015. In between expanding its business centered on delivering food from restaurants, in 2020 it launched 'Instamart,' a service that delivers groceries instantly. In 2024, it rapidly grew to receive a total of $320 million (approximately 49 billion yen) in orders in three months.
Swiggy has 46.8 million annual users and, as of June 2024, has partnered with 223,000 restaurants across the country and signed contracts with 450,000 delivery partners in major cities, but the company says its strategy relies on hundreds of thousands of gig workers who take on one-off jobs online.
Swiggy has set up more than 600 delivery points, or '
Swiggy, which prides itself on its fast delivery times, has been hit by a mountain of customer complaints and is under scrutiny for signs of exploitation in its worker contracts and benefits. In addition to these circumstances, analysts point out that 'Swiggy's business growth is 4 to 6 quarters behind its peers,' and local investors have responded negatively.
Swiggy itself has shown a desire to expand its business, and has filed for an IPO in April 2024, with the company scheduled to go public on November 13. It has already received bids from sources including the Norwegian government fund, more than three times the expected amount.
According to research firm Chryseum Advisors, Swiggy has a market share of about 37% in the domestic quick commerce sector, second only to Zomato's 39% as of March 31, 2024. Demand for India's quick commerce business itself continues to grow, and Amazon, which already operates general e-commerce in India, is also planning to enter the quick commerce business from 2025.
'If an Indian online shopper wants a washing machine, a smartphone or furniture, they usually go to Flipkart or Amazon,' Majeti said. 'The race to win in this market is not about who has the most capital, but who can innovate and improve the hyperlocal consumer experience.'
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