The auto sector is pushing for amendments that would remove tariffs on foreign parts used in domestically produced vehicles; thus, President Trump is making progress towards easing the impact of his tariffs.
In an attempt to avoid numerous charges piling on top of one another, a White House official announced on April 28 that imported cars would also be exempt from separate tariffs on steel and aluminium.
In a statement sent by email, Commerce Secretary Howard Lutnick noted that this agreement, which rewards domestic manufacturers, is a significant win for the president’s trade policies. Additionally, it gives corporations who have stated their intention to increase their domestic manufacturing and invest in America a runway.
Trump Administration Completing 100 Days
The requested changes are being proposed as Trump prepares to visit Michigan to commemorate the first 100 days of his second term in the White House. According to a report, a proclamation putting the adjustments into effect may be signed as early as 29 April, before Trump’s scheduled speech in Macomb County.
This county is a centre for auto manufacturing and a stronghold of blue-collar people that Trump claims his tariffs are intended to support. Additionally, the change would be the most recent development in Trump’s constantly shifting trade policy, which began earlier this month when he decided to halt increasing tariffs on dozens of trading partners in order to facilitate negotiations.
The anticipated adjustments occur shortly before the 25% tariffs on foreign vehicle parts go into force on May 3.
Based on the value of their US car manufacturing, manufacturers would be eligible to get a partial reimbursement for tariffs on imported auto parts under the proposed adjustments, the official said. With a phase-out intended to encourage automakers to move more of their supply chain into the US while also providing them time to adjust, the scope of those reimbursements would gradually decrease.
Players Welcoming the Move
A close-knit North American supply chain might be disrupted by Trump’s tariffs, so automakers, dealers, and component suppliers had begged for some reprieve. In a statement, Jim Farley, the CEO of Ford Motor Company, said that Ford is pleased with President Trump’s decisions.
This will lessen the negative effects of tariffs on suppliers, customers, and automakers. Ford and the administration will keep collaborating closely to promote the president’s vision for a robust and expanding American car industry.
“GM feels the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” said Mary Barra, CEO of General Motors Co., in a statement.
In a letter to the government last week, industry associations warned that tariffs on imported auto parts could increase the cost of US manufacturing plants, endangering attempts to boost local vehicle production.
The e-commerce industry has flourished well in recent years. The platforms have been a blessing for the consumers. People are now keener towards online shopping. They get to have a wide variety of discounts and easy exchange and returns.
Online shopping sites like Amazon, Flipkart, and Myntra are super popular. Now, another platform, Meesho, has entered the market. It is a social e-commerce platform that provides a wide range of products.
Meesho, apart from selling, allows the customers to resell the products in their social network. In recent times, the platform has become extremely popular. This has been possible because of the eye-catching marketing strategies of Meesho.
About Meesho – India’s Leading Social E-Commerce Platform
Meesho Logo
The name Meesho is short for ‘Meri e-Shop’. It is India’s first social e-commerce company. It provides a platform for various small businesses to enter and flourish in the online market.
Meesho allows a person to buy things from the platform. Along with this, it enables a person to resell the products from home. One can trade through their social media networks like WhatsApp or Facebook. The best part here is that a person does not have to bear any extra expense for trading.
Foundation of Meesho
Sanjeev Barnwal and Vidit Aatrey
Meesho came into existence in the year 2015. Vidit Aatrey and Sanjeev Barnwal are the co-founders of the company. They were batchmates in IIT Delhi. The headquarters of the company lies in Bengaluru.
They started the company with the idea of establishing small and medium enterprises online. Their initial idea was quite like Zomato and Blinkit (ex-Grofers). This was to bring the local retailers online.
Later on, they came up with an extensive idea for the company. It was to enable the people to resell the products using the platform.
Meesho helps people to resell the products with no investment. A person can go to the app and select any product that they like to resell. Then, one can add up their commission on top of the product and shipping charge. With this final price, one can share the products over WhatsApp or Facebook groups.
If a customer makes an order, then you can place it on the app. Meesho will get the payment, and you will get your cut. In this process, Meesho also takes a fixed percentage of commission from the sellers for itself.
Meesho Target Audience
Meesho’s target audience are the everyday Indians looking for value and convenience. This includes price-conscious shoppers from Tier 2, Tier 3, and rural areas who want quality products at affordable prices. Many of them are first-time online buyers, exploring the ease of shopping from their phones. Meesho also empowers small business owners and resellers—especially women—who use the platform to earn by sharing and selling products on social media apps like WhatsApp and Facebook. These users value simplicity, low investment, and the freedom to work from home.
Meesho Marketing Mix
The marketing mix of Meesho refers to the 4Ps of marketing: Product, Price, Place, and Promotion. Meesho uses a variety of marketing strategies and tactics to reach its target audience and to promote its products and services:
Meesho Marketing Mix
Product: Meesho has a diverse product line that includes apparel, home and kitchen, technology, and accessories. The company obtains its products from a range of providers and charges reasonable pricing. Meesho also provides a number of unique products that are only available on its marketplace.
Price: Meesho does not directly set product prices because individual resellers have pricing discretion. Sellers usually determine their own prices, taking into account aspects including cost, competition, and profit margins. To attract both merchants and consumers, the portal periodically offers discounts or promotions.
Place: Meesho is primarily an online marketplace and mobile application that connects vendors and customers across India. Sellers can use the Meesho app to display their products and sell to clients in their immediate vicinity or over larger networks. Meesho covers money processing and logistics, making transactions and deliveries easier.
Promotion: Meesho uses a variety of promotional channels to reach its target audience and to promote its products and services. The company uses social media marketing, digital marketing, and offline partnerships to reach its target audience. Meesho also runs contests and promotions to generate excitement and buzz around its brand.
Marketing Strategy of Meesho
Meesho has more than 11 lakh suppliers. The platform has gained huge popularity. Meesho has become the Unicorn in 2022. This became possible because of its proper planning and insane marketing strategies.
Here are some of the marketing strategies followed by Meesho:
Niche Based Strategy
Meesho Marketing Strategy
The foremost Meesho marketing strategy is based on a niche to empower women. Meesho aims to build the idea of independence among women. Women who are homemakers and lack financial independence are the most benefited from it.
Meesho’s strategy was to develop a niche around its company. It is to empower women with business opportunities at home. It enables them to be an entrepreneur without investment and too much hassle.
This woman-empowering strategy by Meesho gained huge popularity. It created an entrepreneurial hope among homemakers.
The world is digitizing at a rapid rate. People spend a lot of time on their social media. Meesho also engages in social media marketing. Meesho’s promotion strategy focuses on social media marketing, influencer partnerships, referral programs, and regional content.
Meesho Social Media Marketing
This helps to develop a connection with the audience. It engages in collaborations, campaigns, graphics, and videos to promote its brand. It makes sure to build its online popularity.
Search Engine Optimization Strategy
Meesho’s SEO approach focuses on optimizing its website and content for relevant keywords so that it appears high in search results when people search for those phrases. Meesho also employs a range of SEO strategies to increase the authority and ranking of its website in search results. Meesho has become the most popular retail business in the country, with over 30.3 million visits each month and an annual revenue of over 200 million dollars. It is ranked 103rd in the country in terms of site visitors and 11th in its domain. It has gradually gained popularity and boosted engagement, with viewers interacting for an average of 3.59 minutes and a bounce rate of 51.69%.
Target Marketing
Meesho’s first and foremost marketing approach is to launch a focused campaign for women. Meesho carved out a niche for their company. It strives to empower women by providing them with business opportunities at home. They can establish their own business without spending much money or time. Meesho’s feminist strategy is much admired. Meesho’s target marketing strategy has helped the company reach its target population and develop its business. Meesho is currently one of India’s largest e-commerce enterprises and is well-positioned to expand further in the future.
Influencer Marketing
Influencers hold great potential and an audience with them. When a brand gets associated with an influencer, it gains the customers’ trust. Meesho’s marketing strategy is dependent on the influencer program.
Meesho has also opted for the strategy of influencer marketing. Various influencers like Abhinav Singh, Garima Chaurasia, Khushi Chaudhary, and Anisha Dixit promote Meesho. This helps Meesho gain more audience for the company.
Meme Marketing
Memes Posted by RVCJ Collaborating with Meesho
Meme marketing is the latest trend in the market. Everyone loves to see and share them. So, strategizing a company’s promotion in these memes is a successful marketing technique.
Meesho’s marketing strategy has taken a plunge into meme marketing. Meesho shares its new offers and discounts in memes. For example- They have used a dialogue from Jab We Met movie to convey its affordable prices. This strategy helps the company to attract more audiences and gain customers.
YouTube and Facebook Ads
Advertisements are the best way to market any business. Keeping up with the trend of digital marketing, Meesho uses YouTube and Facebook ads.
These ads help Meesho to build a strong presence. YouTube has a huge demographic audience. Thus, this strategy helps Meesho get seen by more viewers. Whenever a person clicks on these ads, they are redirected to the company’s site or app. In this way, it helps the company to earn traffic. This strategy has boosted Messho’s marketing.
Here’s one of the popular ad campaigns – “Sahi Price” by Meesho.
Other prominent marketing strategies of Meesho are email marketing, television commercials, sponsorships, and SMS marketing to build its brand presence.
Meesho’s Traffic Sources
Meesho’s marketing strategy is mainly focused on Direct traffic, which is 52.03% on average. It gets an organic search of 37.71%. Apart from these, it generates traffic of 3.73% from social media, 1.07% from emails, 0.18% from referrals, and 0.09% from the display. The generation of traffic helps them in online marketing.
Social Media traffic on Meesho:
Social Media Channels
Traffic Distribution
YouTube
52.70%
Facebook
32.13%
Instagram
5.87%
Whatsapp
5.74%
Pinterest
1.13%
Others
2.43%
Covid-19 Marketing Strategy of Meesho
Meesho took a high road and gained huge popularity during the pandemic. At a time when people were losing their jobs and looking for business opportunities, Meesho came as a ray of hope.
It not only provides products at an affordable rate but also helps individuals to resell them. They made campaigns like #MyStoreMyStory. The ad shows how a woman carries many roles in her life for her loved ones. It promotes itself by showing how Meesho helps women earn their entrepreneurial identity with no investment.
During the pandemic, Meesho, through its marketing strategies, encouraged people to engage in its business opportunities.
The “Arrey Wah!” marketing campaign by Meesho emphasizes the value and simplicity of buying on Meesho. The campaign includes a series of advertisements depicting people from many walks of life discovering excellent things at low prices on Meesho.
The advertisements were frequently amusing and relatable, emphasizing the significance of value and ease in today’s environment. This advertising has been extremely successful in reaching out to Indian customers. The advertisements are relatable and entertaining, emphasizing the significance of value and convenience in today’s environment.
Meesho Pe Hai Sab Kuch
Marketing Campaigns of Meesho – Meesho Pe Hai Sab Kuch
The “Meesho pe hai sab kuch taaki aap kar payein bahut kuch” campaign seeks to promote Meesho as a one-stop shop for all of your requirements, regardless of price or lifestyle.
The campaign includes a series of advertisements depicting people from different walks of life using Meesho to achieve their objectives. A young woman in one advertisement uses Meesho to buy a new dress for a job interview. Meesho’s price and convenience are also highlighted in the campaign. People are shown saving money on Meesho and obtaining their items fast and simply in the advertisements. Through this campaign, Meesho’s strategy was to increase its traffic and retain its customers.
#MyStoreMyStory
Marketing Campaigns of Meesho – #MyStoreMyStory
Meesho’s #MyStoreMyStory marketing campaign is a social media promotion that highlights Indian women’s business drive. The campaign tells the tales of women who used Meesho to launch their own enterprises and attain financial independence.
The campaign is founded on the observation that many Indian women want to work and support their families, but they may face obstacles such as a lack of capital, knowledge, and resources. Meesho is a platform that enables women to launch their own businesses with no upfront investment or experience.
Sahi Sahi customer, Toh Business Ek Number
Marketing Campaigns of Meesho – Sahi Sahi customer, Toh Business Ek Number
The campaign is built on the realization that customer quality is more essential than customer quantity. The campaign also emphasizes Meesho’s tools and services, which assist sellers in finding the proper clients. The advertisements depict retailers utilizing Meesho’s product recommendations, targeting, and analytics solutions to reach the proper buyers. This campaign shows the creativity of Meeho’s marketing.
Shopping ki Power
On July 24, 2024, Meesho unveiled its latest campaign, “Shopping ki Power”, aimed at encouraging first-time online shoppers in India. With the tagline “Shopping ki power lo apne haath mein”, the campaign promotes informed purchasing by showcasing real customer images, reviews, and educating users about Meesho’s easy return and refund policy. Conceptualised by DDB Mudra and Meesho’s creative team, the campaign focuses on building trust and confidence in e-commerce.
Conclusion
Meesho is one of the startups that made great progress in less time. In eight years, it has proved to be a great blessing for tier 2 and 3 cities. They have gained a huge customer base from these cities.
The company has helped various small businesses to establish themselves online. It started from helping the local shops and now has become a social e-commerce platform, helping various individuals. The unique idea and marketing strategies have helped Meesho grow well with further growth potential in its pocket.
FAQs
Who is the CEO of Meesho?
Vidit Aatrey is the co-founder and CEO of Meesho.
How does Meesho’s marketing strategy work so effectively?
Meesho’s marketing strategy is particularly effective because it targets its niche audience and reaches them through various channels and tactics.
How many resellers are on Meesho?
Meesho has more than 15 million resellers on its platform, of which 15 million are women.
What is the business model of Meesho?
Meesho earns from the 10% to 20% commission they charge sellers when they sell a product.
What is Meesho target audience?
Meesho targets price-sensitive consumers, mainly from Tier 2, Tier 3, and rural areas of India, who are often first-time online shoppers. It also focuses on small business owners and resellers—especially women—who use the platform to earn by selling products through social media. Meesho appeals to mobile-first users looking for affordable, convenient shopping and earning opportunities.
The business of restaurants and cafes has taken on a new form thanks to the online meal delivery service. Customers now have access to an enormous array of options in addition to improved connections to regional and global food chains thanks to this system. At the moment, Swiggy and Zomato are the two industry titans; while numerous other businesses attempted their hand at this market, they were unable to compete with these titans. In addition to being the biggest online food ordering and delivery service in India, Swiggy is also the number one unicorn startup in the country. Since its launch in August 2014, it has more than five lakh app installations, partnerships with over 1,50,000 restaurants, and has a strong presence in more than 325 cities across India.
Swiggy pioneered quick pick-and-drop meal delivery services to ease people’s lives. It provides a single window for placing orders from a wide selection of restaurants and a complete meal ordering and delivery system that links local restaurants with food enthusiasts.
They have revolutionised and broken all barriers pertaining to food delivery. From a time when we had to travel, order, and wait to get our favourite food parcelled, today we have grown so much through apps like Swiggy to have high favourite delicacies delivered right in front of our doors. This article will look into the business model that has helped Swiggy gain a place in the market.
Through this article, we will understand the whole ecosystem of Swiggy’s business, right from what business model it follows to how it makes money, we will put a magnifying glass on each of its developments.
About Swiggy
The Bangalore-based business Swiggy was founded in 2014 and has already spread to over 100 Indian cities. Swiggy, which was founded by Rahul Jaimini, Nandan Reddy, and Sriharsha Majety, has a vast national business network. As food ordering and delivery giants, they are currently expanding their digital presence by introducing a variety of platforms and expanding their services in response to circumstances such as “when you prefer not to dine out, they bring the restaurant to you.” In the ongoing competition between Swiggy and Zomato, the app’s features are consistently attracting customers to place orders with Swiggy. Customers may keep tabs on their orders, get real-time updates, talk to customer service, pay with cash on delivery, find incredible bargains, and so on. People from the working class and students love Swiggy because they don’t have much time to cook for themselves.
For example, Swiggy Pop is a 30-35-minute meal delivery service for a single serving. Swiggy offers a variety of products and services to its customers. The Swiggy POP menu offers several dishes such as Asian combos, burgers, bowl meals, biryanis, and Indian thalis. All single-serve meals priced between Rs 99 and Rs 200 will be delivered quickly.
While Swiggy’s primary revenue generator is its commission model, the company does have other verticals that contribute to its success. It uses cutting-edge methods and technology to meet the market’s increasing need for foodies. In addition to being a model of efficient and effective customer service, it also follows all the latest trends in the restaurant industry.
It connects establishments with customers who are looking to eat. It runs well on a dual partnership basis, which is good news for eateries and grocery shops that want to use the platform for food delivery.
Swiggy’s business model focuses on localized, on-demand meal delivery. In addition to connecting eateries, it coordinates a network of delivery partners to provide customers with their meals whenever they want them (within 30 minutes).
Similar to Uber, Bundl Technologies Private Limited built this unicorn startup’s business model around a dual partnership arrangement.
Cooperating Restaurants: Restaurant partners are businesses that have agreed to deliver to Swiggy app and website users.
Collaboration with Delivery Partners: Individuals in the delivery fleet are in charge of picking up the order from the partner restaurant and delivering it to the final customer.
Swiggy’s entire business ecosystem runs on commission, delivery charges, subscriptions, restaurants, and cloud kitchens.
Let’s understand the Business Model of Swiggy in detail:
Key Partners of Swiggy
The major partners that drive Swiggy forward are the restaurants and shops that sign up to have their enterprise enter into food delivery services.
Other than eateries, Swiggy also partnered with pharmacies, groceries, et cetera through their platform. Today, Swiggy Mart is a very important part of the company.
Recently, they had also partnered with Instagram to allow users to use Instagram’s food order stickers in their stories. These stickers will help the viewers of such stories to order similar things from Swiggy.
Key Activities of Swiggy
The most important activity that Swiggy has to undertake is to acquire customers and manage their orders in real-time. This is accompanied by handling delivery and payment processes simultaneously.
Having a very efficient partnership with retail shops, restaurants, and other eateries is an unavoidable part of Swiggy. Swiggy Go fulfills another important activity of pick-up and delivery as well.
Having a sound technical system is a very important part of Swiggy since multiple aspects need to be addressed at the same time while an order is being placed.
Management of these technical operations, maintaining an efficient IT infrastructure, and proper updation of the system are other important activities of Swiggy.
Key Resources of Swiggy
The key resources of Swiggy are the local partners like Keventers, Yogidthaan, and Biriyani Blues tea, which are bestsellers in the cities.
Delivery providers and technology providers are other key resources of Swiggy, which have played a very significant role in strengthening its system.
The resources of Swiggy are expanding as it continues to reach out to more places and more untapped markets.
Value Proposition of Swiggy
Swiggy’s policy of no restriction is one of the main value propositions of the firm.
It also has a very robust online payment system, which has made the entire food ordering journey easier for the customers.
The no minimum order policy has also helped in reaching up to 14 million orders per month, while many orders amounted to less than a hundred rupees.
The Swiggy app’s other main value proposition is that it has given its platform to restaurants and stores to use.
It has helped both Swiggy and its partners to save more than 30% of their operational costs.
Recently, they also launched Swiggy Go, wherein they offer instant pick-up and drop services, which can be utilized by customers to send any kind of packages, documents, parcels, or even tiffin.
They also have digital wallets by partnering with companies like PhonePe, Paytm, FreeCharge, etc.
Swiggy, being an expanding company, needs to have a very efficient customer relationship to ensure long-term growth. Hence, it has active customer support at the perusal of user.
Apart from a 24*7 telephonic system, they also have chat services.
Being active on social media, customers can also send messages to Swiggy’s social media pages, where they usually reply promptly.
It also allows you to rate the places and food delivered by Swiggy.
Channels of Swiggy
Swiggy can be accessed in multiple ways. Various channels on Swiggy include their mobile apps and websites, which are available on both Android and iOS.
Their recent additions to Swiggy Stores and Swiggy Go are the new channels of the firm.
Customer Segment of Swiggy
The people who prefer dining in their own homes but do not want to cook their own food are the main customer segment of Swiggy.
From the people who wanted food to be delivered at their doorsteps being principal customers, we can see a shift to the people who not only want food delivered but also things like groceries, gifts, flowers, medicines, etc, coming into the central stage of customer segments.
Cost Structure of Swiggy
Swiggy also has to incur a lot of expenditure daily to ensure the proper functioning of the app and websites.
They have to incur the expenses of their employees and delivery partners. This is apart from the 2 or 3% commission that Swiggy gives to restaurants that partner with them.
They also have to bear the cost of website and app development, along with maintenance charges.
Advertisements, marketing, and administration create huge expenses as well. Swiggy also has to bear the cost of other miscellaneous expenses, including returns and refunds.
How Swiggy Makes Money | Swiggy Revenue Model
Swiggy Financials 2024
Swiggy Financials
FY23
FY24
Operating Revenue
INR 8265 crore
INR 11247 crore
Total Expenditure
INR 12884 crore
INR 13947 crore
Procurement Costs
INR 3381 crore
INR 4604 crore
Employee Benefit Expense
INR 2130 crore
INR 2012 crore
Advertising Expense
INR 2501 crore
INR 1851 crore
Delivery & Related Charges
INR 1694 crore
INR 1637 crore
Net Loss/Profit
INR -4179 crore
INR -2350 crore
Swiggy Financials FY24
Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy’s total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.
Swiggy was an early player in the Indian food delivery market because of its innovative business approach, which has allowed it to diversify its revenue streams and become a market leader. Upon analyzing the activities of Swiggy over the years, one can observe that their revenue streams are increasing. This is indicative of the company’s very stable and long-term growth. The pandemic restrictions on dine-in services have further helped Swiggy to get the extra push it needed. Below are the Swiggy revenue streams through which the company earns and runs.
Delivery Charges
Since there is no minimum order amount for delivery on Swiggy, the app frequently receives orders below Rs 100. Owing to this, the logistics cost of such orders increases. Therefore, as Swiggy established a dominant position in the market, it began charging delivery fees for small orders, the exact amount of which varied by city. Customers are Swiggy’s primary source of revenue. If a customer’s order total is less than Rs. 250, the business will charge them for delivery. The fee for each order ranges from twenty to forty rupees.
Commission
Another significant portion of the income comes from commissions, which Swiggy gets. In exchange for delivering restaurants’ food orders through the Swiggy app and generating sales leads, it receives commissions from such eateries. Every order placed through Swiggy’s site costs a 15% to 25% fee for restaurants. Restaurants receive perks on this account, such as more exposure and, on occasion, a 2% to 3% reduction in commission.
Advertisement
Swiggy also uses many methods to earn money from advertisements. It displays advertisements for a variety of restaurants on its application and charges a fee to promote them in multiple regions. On top of that, Swiggy charges certain establishments a premium to have their names shown higher on the app’s list of available places to eat. Banner ads and priority restaurant listings were the two main ways that Swiggy began to commercialize its platform. Following in the footsteps of Zomato and Foodpanda, Swiggy has just begun using banner ads. Their website and app feature regionally specific restaurant promotions and listings. The pricing for different regions on the displayed page varies according to the restaurant’s desired level of visibility through the banner ad.
Swiggy Access
Just lately, Swiggy debuted Swiggy Access, a facility similar to a central kitchen base that holds the kitchens of several restaurants, including Swiggy’s own labels. Restaurants will be able to set up kitchens in locations even when they’re not physically there, thanks to this cloud kitchen business concept. From its humble beginnings in Bangalore, the chain has grown to include 36 kitchens across 30 locations in Hyderabad, Kolkata, Delhi, and Mumbai.
Table Reservations
Swiggy has made partnerships with several high-end restaurants. When customers reserve a table at one of these restaurants, Swiggy charges a commission to the restaurant. Additionally, customers are required to pay a nominal booking fee to Swiggy.
Through its Swiggy Instamart app, Swiggy has recently expanded into the online grocery delivery area. The company operates this business through its delivery partners and has established partnerships with numerous grocery retailers. The company retains a commission on each order from the grocery store, while the client is charged with delivery and handling fees.
Swiggy Super
A new membership program called Swiggy Super has just been introduced by Swiggy. Swiggy does not impose surge pricing, requiring the consumer to pay a set amount, and offers limitless free delivery on orders above Rs 99. An introductory price of Rs 49 for a one-month membership and Rs 129 for a three-month membership are the two available alternatives, with the former costing Rs 149 and the latter Rs 349.
Swiggy Go
Swiggy, a frontrunner in the delivery space, uses “Swiggy Go” as an income generator. With its 2019 launch, it provides clients with an immediate pick-up and drop-off service. The service enables users to select, send, and drop anything from and to numerous locations throughout geographies, and the corporation earns a significant amount from it.
Financial institutions like ICICI Bank, HSBC, and Citibank are some of Swiggy’s business partners. Affiliate marketing is a relatively new but very effective revenue stream, and it works for everyone involved. The meal delivery giant has gotten an advantage over competing models thanks to its innovative features and outstanding customer service. With its top-notch service, it has expanded its clientele.
How Does Swiggy Make Money?
USP of Swiggy
Delivery in a timely way and the absence of a minimum order requirement are Swiggy’s primary points of differentiation.
Swiggy SWOT Analysis
SWOT Analysis of Swiggy
Swiggy Strengths
The speed of Swiggy’s delivery is one of the reasons for its fame.
Swiggy has been an excellent p user-friendly platform for consumers to place orders.
The brand’s extensive range and the variety of nearby restaurants are two more of its strengths.
Swiggy Weaknesses
Swiggy will only take orders from establishments that are physically close to the consumer. However, to satisfy their clients, many competitors expand their territory.
Customers’ overall bills are increased by Swiggy’s specific packing and delivery expenses.
Swiggy Opportunities
To gain a larger portion of the market, the corporation can rebrand itself more frequently.
Additionally, the organization may capitalize on cities in which it does not have a presence.
Swiggy Threats
Zomato, another big player in this industry, is a direct competitor to the corporation. Since Zomato is a major player, it has the potential to offer substantial discounts to clients in the future, drawing them away from Swiggy.
People nowadays are more health-conscious than ever before, and as a result, they prefer to cook their meals at home rather than ordering from out.
Swiggy’s growth over time has been phenomenal. It aims to raise more funds to strengthen and expand its services to more places. Despite being a latecomer in the industry, Swiggy was able to gain its deserved position through strategic planning and stable expansion.
Swiggy is doing a fantastic job of satisfying its consumers’ appetites, and it has complemented this with a well-thought-out business plan. This venture is poised for massive growth in the years to come if it continues at its current rate. Even though it’s in a head-to-head competition with another giant named Zomato, Swiggy has a critical advantage that will determine its fate.
FAQ
Who is the founder of Swiggy?
Swiggy was founded by Nandan Reddy, Sriharsha Majety, Rahul Jaimini in 2014.
How much Commission does Swiggy charges?
Swiggy charges 22-25 per cent on order value from their restaurant partners.
What is the business model of Swiggy?
Swiggy’s business model is a hyperlocal food delivery platform. It connects customers with nearby restaurants through its app and website, charges restaurants a commission fee on each order, and collects delivery fees from customers. It also earns from ads and subscription plans like Swiggy One.
What is the revenue model of Swiggy?
Swiggy’s revenue model is multi-channel. It earns money mainly by charging a commission fee from restaurants on each order placed through its platform. It also collects delivery charges from customers, especially during peak hours or for long distances. Swiggy earns through advertisements by promoting restaurants on its app and website, and from subscription plans like Swiggy One, which offer users free deliveries and other benefits for a fee. Additionally, it has expanded into grocery and quick commerce (Instamart), adding new revenue streams.
How does Swiggy dineout make money?
Swiggy Dineout makes money by charging commission fees from partner restaurants for every table booking or dining bill paid through its platform. It also earns through subscription plans like Gourmet Passport, which offer users discounts. Additionally, it generates revenue from promotional listings and ads for restaurants.
In a business, one of the most important factors is advertisement. It is needed to get connected with your audience and engage them with your brand. Brands provide their customers with their products and services. Advertisements are needed while introducing new products, for getting the attention of the target audience, and basically to build a place in the human mind. This can only be done by being creative, the attention span of a human being is worse than that of a goldfish. So, brands have to do something that can blow the audience’s heart and mind, so that they can remember them.
Most of the brands start specific ad campaigns during special occasions; it can be a festival, Independence Day or any kind of day that holds meaning. Mother’s Day is celebrated on the second sunday of May every year. A mother sacrifices a lot for their children brands understand their sentiment and often make moving commercials that include mothers to gather the attention of the audience and make a sentimental connection with them. In this article, we will talk about the top Mother’s Day commercials of 2022 by brands. So, let’s get right into it.
“Creative without strategy is called ‘art.’ Creative with strategy is called ‘advertising.”
-Jef I. Richards
GIVA Jewellery takes a tender walk down memory lane with a beautifully shot film titled “Maa – The First Sparkle in Your Life”. This ad features Anushka Sharma as their brand ambassador and tells a universal story to which every viewer can relate. Towards the end of the film, Anushka presents her mother with a piece of jewellery from GIVA, symbolizing her mother’s enduring influence on her life and gratitude. The campaign’s central message revolves around the idea that a mother’s love is the first sparkle in one’s life, a guiding light that continues to shine through every phase. Through emotional storytelling, GIVA creates a campaign that is both personal and universal, leaving viewers with a warm reminder to celebrate the woman who first lit up their world.
Biba
Biba – Mother’s Day Commercials
BIBA’s 2024 Mother’s Day campaign, “Kuch Nahi,” is a heartfelt tribute to the selfless love of mothers who often say they want “nothing” but truly deserve everything. This is a short film set in a humble household, portraying a mother who intuitively fulfills her family’s needs without being asked. The narrative culminates in a touching moment where the daughter surprises her mother with a BIBA outfit for a family function, honouring her mother’s silent sacrifices. Celebrate the pure and unconditional love of motherhood with BIBA’s “Kuch Nahi” collection, thoughtfully created for Mother’s Day. This ad commercial beautifully captures the unspoken strength of mothers, a heartfelt reminder that though they may ask for nothing, they truly deserve everything.
McDonald
McDonald – Mother’s Day Commercials
The campaign tells the heartwarming story of 8-year-old Ashu, who wants to give his mom the perfect Mother’s Day gift. He starts by pouring his love into a handmade card, but when he feels it’s not enough, he takes things further with a little help from his big brother. Together, they break open Ashu’s beloved ‘Gullak’ (piggy bank) to treat their mom to a special meal at McDonald’s. With his little hands clutching the coins from his broken piggy bank, Ashu walks up to the counter and proudly orders the meal, his big moment to treat his mom. And when she realizes what he’s done, her eyes light up with that special mix of surprise, pride, and love. As they sit together, sharing fries and laughter, it’s clear: sometimes, the most ordinary moments become precious when they’re filled with love.
Mother Dairy
Mother Diary – Mother’s Day Commercials
Some love is so pure, so selfless, it can only be described as “Maa Jaisi,” like a mother’s. Mother Dairy’s touching film celebrates these everyday heroes who embody a mother’s nurturing spirit. What makes this campaign extra special is the musical soul behind it, legendary poet Gulzar Saab. His lyrics flow like a lullaby, beautifully capturing the essence of everyday kindness and care. The music, paired with visuals of real, unscripted human interactions, turns the film into a warm hug of nostalgia and gratitude. Because in the end, what makes someone “Maa Jaisi” isn’t who they are but how deeply they care.
SBI Life Insurance’s Mother’s Day campaign, titled “Mummy Ki Apni Pehchaan”, is a poignant tribute to the multifaceted roles mothers play in today’s society. The campaign shines a light on mothers who put effort into balancing their personal and professional lives, particularly those serving as Life Mitras, SBI Life’s term for their insurance advisors. The heart of the campaign is a digital film that portrays a day in the life of a Life Mitra. It showcases how she manages her responsibilities as a financial advisor while also being the cornerstone of her family. The narrative takes an unexpected turn when her daughter steps into her shoes for a day, gaining a newfound appreciation for her mother’s dedication and resilience. It encourages mothers to pursue their professional ambitions without compromising their familial roles, highlighting that personal growth and family well-being can go hand in hand.
Bandhan Life Insurance
Bandhan Life Insurance – Mother’s Day Commercials
The “Bandhan Life Maa Ki Udaan, Bandhan Se” advertisement is a heartfelt tribute celebrating the profound bond between mothers and their children. It features a touching narrative that tells the story of a 38-year-old woman who runs her own business. Set against a backdrop of everyday life, the ad follows the journey of a mother who, despite facing numerous challenges, remains the pillar of strength for her family. Her aspirations take a backseat as she prioritizes the needs and dreams of her loved ones. However, with encouragement and support from her children, she embarks on a path to rediscover and pursue her passions, symbolizing the idea of “Maa Ki Udaan” or “Mother’s Flight.”
Himalaya BabyCare
Himalaya BabyCare – Mother’s Day Commercials
The #StrengthOfLove campaign by Himalaya BabyCare is a warm, relatable, and emotionally resonant tribute to mothers and their everyday superpowers. Ahead of Mother’s Day 2024, this ad focuses on the diligent and emotional strength that mothers display while juggling multiple roles in the lives of their small children. The ad uses a clever narrative series of multitasking challenges to depict the daily hustle of mothers. Whether it’s calming a crying baby while managing household chores, handling work calls with a toddler clinging to her, or managing sleepless nights with a smile, the campaign beautifully illustrates how a mother’s love isn’t just emotional, it’s powerful, resourceful, and deeply instinctive.
Amazon
Amazon, the biggest E-commerce platform released a beautiful advertisement for the 2022 mother’ day. It not only shows how a loving mother is fulfilling the responsibility of a working mother but also how she is making her own path in a place that is termed as the man’s world. The woman in the advertisement was seen kissing her child before heading out in her scooter. Slowly, it shows that she is a delivery executive and is seen delivering big packages to different places. People seems shocked and surprised to see her while many gave her sweet and encouraging smiles. The advertisement, in the end, shows that they are called trailblazers as well as moms.
Tanishq
Tanishq – Mother’s Day Commercials
One of India’s most popular jewellery brands launched a new advertisement ahead of mother’s day. The advertisement shows a woman in an interview who is coming back to work after maternity leave. Maternity leaves most of the time becomes a gap in a resume, so this ad shows how the woman describes the maternity leave just like any other job experience and termed it as ‘Life Boot Camp’. The interviewer in the end hires the woman and told her that with her experience she is ready for something bigger. The ad showed in the conclusion that a maternity break is not a gap but a boot camp in leadership.
Babyshop is a well-known children’s retail store known for selling baby and kids products. For their mother’s day special they launched an advertisement where it shows that even in times of uncertainty and Covid-19, moms are taking care of their children diligently. They struggle with stress and are afraid of the virus but still, mothers teach their children all the necessary values and give them hope and care in the tough times. In the end, the advertisement conveys that no matter what mothers will always be a light to guide the children, support them and be an inspiration to them.
DICK’s Sporting Goods
Dick’s Sporting Goods – Mother’s Day Commercials
Dick’s Sporting Goods is a company known for providing amazing sporting goods. This year for their mother’s day advertisement, the company took their own employees and made them the protagonists of the advertisement. The advertisement shows those mothers reassuring their children who are taking part in different sports. In the commercial, the children looked nervous and scared to take a step into the sporting world while the mothers took charge and give them hope and strength by reassuring them.
Mondello Park
Mondello Park – Mother’s Day Commercials
Mondello Park is an international motorsport venue in Ireland. Mondello Park has released an advertisement ahead of Mother’s Day. In the advertisement, a young man has taken his grandmother to the park and has decided to take her on a ride in a fast car. In a change of event, the Grandma tells the young man that she is going to drive the car. The ad shows the enjoying the ride and it concludes with a message that “Give her a memory that will last forever”.
Prega News
Prega News – Mother’s Day Commercials
Prega News, the popular brand of pregnancy test kits has created a brilliant ad campaign for this mother’s day. The commercial took on itself to break the age-old stereotype of perfect mothers. The ad shows how a working mother forgot to order formula food for her baby, and for this the feeling of guilt traps her. While discussing the next mother’s day ad campaign with the employees, another woman suggested making a campaign to show that mothers can be imperfect. They can also make mistakes just like other humans and it is completely okay to not be perfect.
Shoppers Stop
Shoppers Stop – Mother’s Day Commercials
The online shop that provides different brands of clothes for everyone has come up with quite an interesting ad for their mother’s day campaign. They are showing mothers here being cool and accepting and encouraging their children with their choices in life. They released three commercials altogether. One of the commercials shows a young man is shown playing video games, suddenly his mom came and he thought she is going to scold him for playing games at late night. At the turn of events, the mom said that she will also play with him.
Mother’s Day has always been a great time for brands to launch an ad campaign that can move people and thus make them feel connected with the brand. Sentimental advertisement can do wonders and when it includes social issues and inspirational moments, it becomes more powerful. This is the reason why popular brand often releases new ad campaign, especially for Mother’s day.
FAQs
When is Mother’s Day celebrated?
Mother’s Day is celebrated on the second Sunday of May every year.
Who is the founder of Amazon?
Jeff Bezos is the founder of Amazon.
What are some of the marketing ideas for Mother’s Day?
One of the marketing ideas for brands is to create a sentimental ad campaign that related to mothers and children.
India’s commercial vehicle space is undergoing a giant upheaval. Mahindra & Mahindra took a firm step in this very direction when it acquired a 58.96% stake in SML Isuzu, for INR 555 crore, at INR 650 per share. This not only brings Mahindra up to the fourth position in the segment for trucks and buses over 3.5 tonnes, where it had only 3% market share before, but it gives the company a slightly better foothold in a very uncertain market. The company now sits with 10–12% market share in an overall segment that, frankly, doesn’t even seem to grow much right now.
The acquisition fits like a glove with Mahindra & Mahindra’s long-term plans to significantly scale its operations over the next decade. That share moves up to 21% when you include the combined share of Mahindra’s group companies in this sector. Such a consolidation gives the company a distinctly stronger competitive status in the market.
Fast-Tracking Entry into Electric Mobility
One of the most impressive features of the arrangement is Mahindra’s rapid entree into the electric bus sector, a market that is picking up speed as masses of people are transported in urban environments and those systems look for sustainable options. The existing work SML Isuzu has done in electric vehicle technology provides Mahindra with a jump-off point to expand its electric commercial vehicle offerings.
Mahindra’s auto and farm business is overseen by Rajesh Jejurikar. He emphasized opportunities for synergy across platforms, components, and supply chains. The two brands will keep operating independently for now, he said, the integration behind the scenes will aim to optimize cost efficiencies and technological collaboration.
Deal Structure and Strategic Intent
The acquisition includes the purchase of stakes held by Japan’s Sumitomo Corporation and Isuzu Motors, which together account for the 58.96% majority. In line with Indian regulations, Mahindra will also make a mandatory open offer to public shareholders for up to 26% more. The offer price may be significantly lower than SML Isuzu’s recent market valuation, it shows Mahindra’s confidence in the long-term strategic value of the deal as compared to short-term financial metrics.
The investment is in line with the Mahindra Group’s capital allocation strategy – a clear tactic which targets high-growth areas where strong operational performance is often noticed. Mahindra CEO Anish Shah has repeatedly emphasized the group’s goal to achieve 5x growth in segments that are part of the emerging business. One of those segments is commercial vehicles, which electrification makes a far more promising business than it was just a few years ago.
Even though Mahindra has dismissed the idea of an immediate merger of its truck and bus division and SML Isuzu, it seems that the roadmap leads to deeper operational harmony in the future. As for the decision to maintain SML Isuzu’s Swaraj Mazda branding, it comes across as measured approach. It is one thing to ultimately achieve operational entity harmony, it is quite another to do so while maintaining the market identities necessary to retain customer loyalty.
Ather Energy’s highly awaited initial public offering opened with a comparatively tepid response, achieving just over 12% overall subscription on day one. Retail investors were the main driver behind that early subscription lift, with their category achieving 46% subscription by the end of the first day. Meanwhile, non-institutional investors managed to reach an overall subscription level of 14%. The offering itself has an overall target size of nearly INR 3,000 crore and is open for bidding until April 30. Shares are being offered at a price between INR 304 and INR 321. Even with this lackluster lead-in, most observers say that this kind of early first-day subscription performance is not unusual for offers that are debuting in this kind of cautious market environment.
The initial public offering (IPO), comprising a fresh issue of INR 2,626 crore and an offer-for-sale worth INR 355 crore, is the first big mainboard listing of FY26. It will test the waters of investor sentiment for the emerging Indian electric vehicle sector when it lists on May 6.
Valuation Reflects Adjusted Expectations
Ather’s valuation at the high end of its price band comes to around USD 1.4 billion, nearly 44% lower than the earlier figure they were shooting for. The company seems to be taking a more realistic approach these days, thanks to all the craziness in the global and domestic equity markets. In any case, analysts looking at the offering found Ather’s valuation to be reasonable, in light of its growth rate and an EV/sales multiple of 8x, based on a nine-month FY25 revenue estimate of INR 1,579 crore.
Experts in finance from Arihant Capital have recommended adopting a ‘subscribe for listing gains’ stance, which shows their level of confidence in Ather’s strategic positioning and future earnings potential. Trading in the grey market shows a barely-there premium, under 1%. Yet that has not significantly reduced the level of confidence that institutions have in Ather.
Solid Anchor Support Bolsters Confidence
Before the opening of the IPO, Ather Energy received INR 1,340 crore from a list of prominent anchor investors. Included in this list are several heavyweights, such as SBI Mutual Fund, Franklin Templeton, and the Abu Dhabi Investment Authority. Seen as a vital confidence booster for retail and institutional investors considering a longer-term investment in the electric mobility sector, this anchor book is one that several individuals in the investment community are keeping an eye on.
The company plans to use the new capital to drive its next stage of growth. It aims to do things like establish a manufacturing plant in Maharashtra and pay back loans it has taken. It also intends to do quite a lot of work in research and development in marketing and other corporate endeavors.
Early Backers Set to Reap Rewards
Ather’s IPO is also set to bring notable gains for its early investors. IIT Madras, through its incubation arms, holds about 15.58 lakh shares in the company and is expected to realize around INR 50 crore from the sale. This windfall reflects the long-term vision of Ather’s early supporters and the successful maturation of one of India’s prominent electric two-wheeler brands.
Ather Energy is in a prime position to take advantage of the rapidly changing electric vehicle market in India. It has benefited from an early-mover advantage. Its recent introduction of a premium product, the Ather Rizta, promises to grow its already substantial product suite. Ather’s seemingly unquenchable thirst for in-house research and development has additionally equipped it very well for future success.
When Bert Mueller picked India instead of Europe for his study abroad program, people were hardly placing bets that it would lead to the establishment of a company worth millions. While many of his fellow students chose the well-trodden paths of Spain and Italy, Mueller opted for the narrow, less-frequented roads of India, the places not covered in the guidebooks. Aside from kindling his personal passion for India, his years there also sparked the idea for a chain of Mexican-inspired restaurants he calls California Burrito, which now has more than 100 locations across India. Back in Bengaluru, where he runs the operation, he’s plotting the company’s next move.
The concept of bringing Mexican gastronomy to India germinated in 2011 when Mueller, with childhood friends Dharam Khosla and Gaelan Connell, established their first outlet. At the time, the Mexican flavor profile was mostly a mystery to Indian diners, making our launch a rather daring and risky proposition.
From Modest Beginnings to a $23 Million Revenue Stream
The venture began with an initial investment from close family and friends of the founders, who together invested around USD 250,000. Their first-year revenue, close to USD 500,000, was a promising start for a brand-new concept in a competitive market. Fast forward twelve years, and the brand now generates around USD 23 million annually. This figure is even more impressive when you consider the devaluation of the rupee over the same period (from approximately INR 44 to about INR 85 to the dollar).
Even with the remarkable figures he has posted, Mueller has remained down to earth. He lives on a budget that is modest by American standards but puts him in a pretty comfortable place. He spends around $150 to $200 monthly on groceries, and about another $100 dining out, with a lifestyle focused more on building the business than on making himself too comfortable.
Navigating Challenges in a New Market
Accomplishing success was not without its hurdles. It meant steering through an unfamiliar legal system, building a supply chain from scratch, and convincing consumers in a diverse marketplace to embrace a never-before-seen cuisine.
Mueller’s ambition for California Burrito goes well beyond the present 103 outlets. He sets his sights on reaching 300 locations by 2030, and in the methodical way he has built the company so far, there’s little reason not to expect he’ll hit that target. In the same stretch of time, he hopes to make the brand a household name across India. Following that expansion, an initial public offering is very much in the cards, which should grease the wheels for the next phase of the company’s growth.
On Monday, the Indian rupee staged a swift rally, momentarily appreciating to 84.96 against the US dollar before settling at 85.03. This was the rupee’s best trading day since December 20, 2024, and a marked improvement from a close of 85.49 last Friday. Dealers attributed the gains to very strong buying in domestic equities and active dollar-selling by foreign banks. In fact, the rupee’s 0.49% intraday rise was the largest single-day gain since April 11, clearly reflecting a market that has taken a strong shine to the currency.
At the start of this month, the rupee had also dipped beneath the 85 threshold on April 4, reaching as low as 84.95. However, meagre customer demand and a stronger dollar due to rising U.S. Treasury yields, along with expectations of a more aggressive Federal Reserve, kept the rupee under pressure. On Monday, the Indian currency had gained some demand along with a slight boost coming from a more stable dollar. By the end of trading, the rupee had managed to push up a little, offering some direction.
Equity Markets and Foreign Inflows Boost Sentiment
The resurgence of the rupee was fueled by a jump in the domestic equity market, where heavyweight stocks like Reliance Industries vaulted over 5 percent after they too beat quarterly earnings estimates. Reliance’s stellar performance helped lift the broader market sentiment, in turn attracting foreign portfolio investment back into Indian equities.
A declining dollar worldwide also added to the rupee’s momentum. The dollar index, which measures the greenback against six major currencies, dipped to 99.6. Meanwhile, other major global currencies, including the euro, pound sterling, and a number of Asian currencies like the Thai baht and the Malaysian ringgit, gained some ground against the dollar in April and early May, which further boosted the rupee’s trajectory.
While Treasury officials observed a psychological resistance level around 85, they said that a convincing breach at that level could open a path for further appreciation. Most heads of Treasury believe that if the momentum continued, there was a chance that it could open below 85 in the next session and reach an additional movement of anywhere from 60 to 70 paise beyond that.
Bond Yields Rise Amid Foreign Selling
Though the rupee saw gains, the government bond market felt some pressure. The yield on the 10-year benchmark bond rose 4 basis points, to 6.40 percent, up from 6.36 percent at the previous close.
Dealers linked the sell-off to profit-taking by foreign banks that had purchased the bonds. And they cited as reasons for the seemingly contrary movement the uptick in India-Pakistan tensions and the need for some participants to take profits after a recent run in both the rupee and the bond market.
Accordingly, the authorities aim to offer a fresh 10-year bond, with INR 30,000 crore of securities available in the first auction on Friday. The new bond is likely to see strong demand, given the risk-off sentiment in the markets and the surging demand for fixed-income assets. The positive outlook for bonds is brightened further by the Reserve Bank of India’s announcement that it would buy government securities in open market operations worth INR 1.25 trillion.
Scott Bessent, Secretary of the Treasury, has made it clear that easing current trade tensions is the responsibility of China. In an interview with CNBC’s Squawk Box, Bessent explained that the trade relationship between the US and China is heavily tilted in China’s favor, with it selling five times more goods to the US than it gets in return. He highlighted the steep tariffs, 120% to 145%, are unsustainable and suggested that China take some steps toward making the trade relationship a little more balanced. That, he said, would de-escalate the current situation, which is in China’s best interest.
Market uncertainty has been heightened by President Donald Trump’s announcement in early April of global tariffs affecting pretty much all trade partners. Although the metal tariffs have been put on hold for 90 days while negotiations are carried out, the pressure is very much on for talks to produce something that all sides can live with.
Signs of Progress with Other Trading Partners
Although there are many problems with China, Bessent had a much more optimistic view of our other trade partners. He said that the U.S. has been given very promising signals from a number of countries and expects to see new trade agreements with them very soon. One country he seemed to suggest could be a front-runner for announcing a deal was India. He indicated that developments concerning a trade agreement with India might be announced in the next few days.
Currently, about 15 to 18 major trading relationships are under negotiation. Bessent said that many countries have put forward very strong proposals, and the administration is taking a close look at them. His remarks suggest that even as the China situation looms large, steps taken with other countries could, in the end, serve to cushion the U.S. economy.
Europe Grapples with a Strong Euro
Focusing on Europe, Bessent proposed that the region’s monetary policymakers are expressing heightened concern over the euro’s strength against the U.S. dollar. Since the onset of 2014, the euro has appreciated almost 10%, reversing dangerously close to parity levels in early January, not to mention the sort of levels that almost got European leaders to endorse currency interventions back in 2012.
He forecast that the European Central Bank might have to reduce interest rates to combat the euro’s ascent. While the US keeps a strong-dollar policy, European countries are probably looking for ways to maintain their currency’s value in a fast-changing global market.
The recent status of the trade discussions with China is a bit murky, and the White House has sent out some mixed signals. President Trump has suggested that the talks are indeed continuing, which China has refuted.
Urban Company, a leading on-demand services platform, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) valued at up to INR 1,900 crore. The IPO is a mix of a primary issuance and an offer-for-sale (OFS) by existing investors, aimed at boosting the company’s growth and technological capabilities.
Structure of the IPO
Urban Company’s IPO will comprise two components: a fresh issue of shares worth INR 429 crore and an offer-for-sale (OFS) of INR 1,471 crore. The initial approval from the company’s board was for a fresh issue size of INR 528 crore, but the DRHP indicates a reduction to INR 429 crore. This will be used primarily for technology development, including cloud infrastructure, as well as marketing and operational expenses.
Key Shareholders and Ownership Breakdown
As per the details in the DRHP, Elevation Capital holds the largest share of 10.84% in Urban Company, making it the biggest external stakeholder. Following closely are Accel India with 10.5% and VY Capital, which owns 9.18%. Other notable investors include Steadview and Prosus, each possessing 6.80% of the company. Additionally, Bessemer India and Tiger Global own 6.46% and 4.73%, respectively. The company’s co-founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, together own 20.01% of the company, with their stakes equally distributed among them.
Offer-for-Sale (OFS) Component
The offer-for-sale component will see several major investors offload shares:
Accel India plans to sell shares worth INR 433 crore.
Elevation Capital will offer shares worth INR 346 crore.
Tiger Global (via Internet Fund V) is set to offload INR 303 crore worth of shares.
Bessemer India and VY Capital will also participate, selling shares valued at INR 173 crore and INR 216 crore, respectively.
Financial Growth and Future Plans
Urban Company has demonstrated strong financial performance. For the financial year ending March 2024, the company reported a revenue of INR 828 crore, marking a 30% growth from INR 636.5 crore in the previous fiscal year. In terms of profitability, the company successfully narrowed its losses to INR 93 crore from a more substantial loss of INR 312.4 crore in FY23, reflecting its ongoing efforts to improve operational efficiency.
The company plans to allocate the IPO proceeds towards developing its technological infrastructure and enhancing its digital capabilities. Also, some funds will be used for expanding marketing efforts and covering overhead costs, including expenses related to office space.
Company Background and Market Position
Urban Company was founded nearly a decade ago by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan. Since its inception, the company has grown to become a leader in the on-demand services industry, offering a variety of services such as beauty treatments, appliance repairs, plumbing, and cleaning.
Lead Managers and Investor Expectations
The lead bookrunning managers for the IPO include Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs, and JM Financial. With a strong track record and expanding market demand, Urban Company’s IPO is expected to generate significant interest from investors, looking to tap into the fast-growing home services market.
