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Tag: swiggy

  • The New Stand-Alone App from Swiggy ‘Snacc’ for Food Delivery in 15 minutes

    Swiggy, a platform that delivers groceries and food, has released a new app called Snacc that allows users to order meals, snacks, and beverages in as little as 15 minutes. The debut coincides with a race among Indian food delivery apps to deliver hot beverages and biryani to consumers’ doorsteps in less than ten to fifteen minutes.

    Recently, Blinkit, Zomato’s quick-commerce subsidiary, launched “Bistro,” a platform that promises to deliver meals, snacks, and drinks in ten minutes. The debut took place barely one day after competitor Zepto announced the Zepto Cafe, their endeavour.  In a few places, Zomato has started offering its own 15-minute food delivery service. Zomato’s explore page now has a special “15-minute delivery” tab. The business hasn’t, however, released an official statement. Quick-to-prepare, ready-to-eat meals from a few eateries within a two-kilometre radius are promised by the service.

    Vibrant Features of Snacc

    On January 7, Snacc, which has a bright fluorescent green background and dark blue writing, went online in a few areas of Bengaluru. The sources claim that Swiggy intends to expand the platform throughout the nation.

    Chocolate cookies, Indian breakfast, coffee, tea, eggs, rolls and sandwiches, lunches, cold drinks, egg puffs, and cheese Maggie are among the foods offered at Snacc. Prior to that, Swiggy announced in December that it had expanded Bolt, its 10-minute meal delivery service, to more than 400 cities and towns nationwide. For the first time, fresh food from consumers’ favourite restaurants is being delivered right to their door. According to Rohit Kapoor, CEO of Swiggy’s Food Marketplace, fries are crispy straight out of the packaging, ice creams remain frozen, and idlis arrive warm and fluffy.

    Offerings of Bolt

    The Bolt offers a variety of well-liked food items that are ready to pack or take little preparation time, such as burgers, snacks, bakery goods, drinks, desserts, ice creams, and breakfast items. Local favourites like Gwalia Sweets in Ahmedabad, Shiraz and Kookie Jar in Kolkata, Karachi Bakery, and G Pulla Reddy Sweets in Hyderabad are available to customers on Bolt in addition to well-known domestic brands.

    The app also offers food items from MM Mithaiwala in Mumbai, Bhartiya Jalpan and Anand Sweets in Bangalore, Sethi Ice Cream in Delhi, and Irani Cafe in Pune, etc. More than 10% of the orders placed by leading partners in Tier-2 cities, such as Varalakshmi Tiffins in Guntur, Akhshay Tiffins in Mangalore, and Baap of Rolls in Roorkee, already come through Bolt.

    According to Swiggy’s annual report on the nation’s food ordering habits, the 10-minute Bolt meal delivery service set records for delivery times of up to three minutes for food items like burgers, cakes, and ice creams in places like Nashik, Hyderabad, Mumbai, and Delhi.

    Magicpin’s magiNOW to Spice up the Competition

    MagicNOW, a new 15-minute meal delivery service being piloted in major Indian cities and metros, was recently unveiled by magicpin, the country’s third-largest food delivery app.

    In order to preserve freshness and culinary integrity, magicNOW strives to deliver fast meals within a 1.5–2 km radius. Bengaluru, Hyderabad, Mumbai, Chennai, Delhi-NCR, and Pune would be the first cities to host it. Between November 14 and December 15, magicNOW successfully performed 75,000 deliveries from more than 1,000 local restaurants and a network of more than 2,000 food brands, such as Wendy’s, Chaayos, and Faasos. According to Datum Intelligence’s study, the fast commerce market is projected to grow from $6.1 billion in 2024 to $40 billion by 2030.

    Zomato Competes with Swiggy Bolt and Zepto Cafe in 15-Minute Delivery
    Zomato competes with Swiggy Bolt and Zepto Cafe in the growing 15-minute delivery market, intensifying the race for faster service.
    StartupTalkyNitin Konde

  • Coca-Cola-Supported Foodtech Company Thrive Closes

    According to Krishi Fagwani, cofounder and CEO of the foodtech platform Thrive, it is the most recent Indian firm to cease operations. The cofounder blamed a lack of resources for the decision to shut down operations in a LinkedIn post. “We’ve worked hard over the years to develop a more equitable method of food delivery and discovery, which includes reduced commissions, more fair prices, socially guided discovery, and a human-centred relationship between eateries and their patrons. However, we were unable to obtain the resources needed to scale that goal,” Fagwani stated. The founders reflected on the lessons learnt, stating that it is “extraordinarily challenging” for tiny platforms to exist and that a “few well-funded giants” control the market. “In order to guarantee continuity for our restaurant partners, we are currently working to transfer Thrive ONDC, Thrive Direct, and the Thrive Marketing Suite to the appropriate industry partner,” he continued. He promised that throughout the transition phase, all services—including payments and tax compliance—would run smoothly. 42 people worked for the startup. 

    Why Thrive Opted for Closing its Operations?

    Thrive, which was founded in 2020 by Fagwani, Dhruv Dewan, and Karan Chechani, directly competed with Swiggy and Zomato and had partnerships with over 14,000 eateries across 80 locations. It gave restaurants the option of using one of the startup’s third-party logistics partners or their own employees to deliver the orders. Additionally, Thrive provided restaurants with a self-serve feature that allowed them to create their own sub-portals on its platform in order to receive direct online orders from customers. In contrast to Zomato and Swiggy, which charge 18–25% commission, the platform promised to charge only 3%.

    Zomato and the newly listed Swiggy are the two main players in the food tech industry. By making strategic acquisitions and altering their business structures, the corporations were able to weather the pandemic. They have both joined the race for rapid commerce.

    The truth is that a tiny number of wealthy giants still control the majority of the industry, making it extremely difficult for smaller, purpose-driven platforms like Thrive to grow to the size that eateries deserve.

    Coca-Cola’s First Investment

    Notably, Coca-Cola made its first investment in an Indian firm in 2023 when it purchased a 15% share in Thrive. In 2021, Jubilant FoodWorks, the company that runs Domino’s India, paid about INR 25 Cr to acquire a 35% share in Thrive. By doing this, Thrive becomes one of the minimum of 12 sponsored startups that were shut down in 2024.

    Tracxn, a data website, reports that Thrive has raised $2.5 million in equity capital over three rounds. Revenue for FY23 increased slightly to INR 2.5 crore from INR 2.3 crore the year before. Its net losses, however, increased to INR 7.4 crore from INR 2.8 crore the previous year.

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  • Swiggy Supports Events by Introducing its New “Scenes” Offering

    Foodtech giant Swiggy has introduced Swiggy Scenes, a new feature on its app, in what appears to be an attempt to strengthen its events and ticketing play. The new option, which was introduced under Swiggy’s “Dineout” offering, enables customers to reserve events, parties, and live music at Swiggy’s partner restaurants. Currently, customers can reserve over 55 events in Delhi, including live music, Christmas parties, and New Year’s celebrations. In Bengaluru, the firm has organised roughly 48 events. Swiggy wasn’t available right away to answer Inc42’s questions about the development. As soon as an answer is received, the story will be updated.

    Recently Launched Initiatives by Swiggy

    The launch of Scenes complements Swiggy‘s several other new developments over the past year or so. The company announced the introduction of One BLCK, a new premium invite-only membership club, on December 12. In October, it also introduced Bolt, a 10-minute meal delivery service. Nonetheless, this appears to be Swiggy’s first new product for its “out-of-home consumption vertical” in the previous 12 months. The vertical includes its restaurant reservation and booking platform Dineout as well as its exclusive events and experiences firm Swiggy SteppinOut.

    Swiggy’s Financial Progress

    In Q2 of FY25, Swiggy generated INR 60 Cr in sales from the vertical, a 71% increase over INR 35 Cr in the same quarter last year. Swiggy projected adjusted EBITDA break-even for the out-of-home consumption vertical for the current fiscal year in its investor presentation. In Q2 of FY24, the vertical’s deficit decreased 79% to INR 9.26 Cr from INR 44.34 Cr. During the reviewed quarter, the adjusted EBITDA margin as a percentage of its GOV was -1.3%, compared to -8.8% during the same period last year. This comes as Zomato, Swiggy’s fiercest opponent, has been strengthening its position in the ticketing market for a while.

    Zomato released District, a distinct app for its ticketing division, in November following the purchase of Paytm Insider earlier this year. Zomato provides its users with movie, event, and food options through the app. Through its first qualified institutional placement (QIP) in November, Zomato raised INR 8,500 Cr (about $1 billion) to support the expansion of its events and ticketing operations, as well as speedy commerce and food delivery.

    Cutting Down on Losses

    Revenue from its “Going Out” vertical increased 214% to INR 154 Cr in Q2 FY25 from INR 49 Cr in Q2 FY24. In the meantime, Swiggy reduced its consolidated net loss from INR 657 Cr in the previous quarter to INR 625.53 Cr in the September quarter, a 4.78% decrease. In Q2 of FY24, revenue increased by 30% to INR 3,601.45 Cr from INR 2,763.33 Cr.

    Swiggy Launches “One BLCK” Membership Plan
    Swiggy unveils “One BLCK,” a premium membership plan designed to offer exclusive benefits and services for its loyal customers.
    StartupTalkyNitin Konde

  • Swiggy Introduces “One BLCK,” a New Membership Plan

    On 11 December 2024, Swiggy, a food and grocery delivery service, unveiled One Blck, an invite-only membership that will be a level beyond its current loyalty programme. The goal of the change is to boost growth in all of its business sectors while improving the experience for premium clients. Swiggy’s membership programme presently features three tiers, including One Blck, a base version, and One Lite, a low-end version that was introduced in 2023.

    The Bengaluru-based business claims that One Blck will provide members with an on-time guarantee and quicker delivery for their food orders. Members will get access to perks like free cocktails, drinks, or desserts when dining out.

    What One BLCK Offers?

    The on-time guarantee function was also introduced by Zomato, its main competitor, in 2019 for users of its Gold loyalty programme, which Zomato later abandoned. In addition to discounts on food delivery and Dineout, One Blck members will receive all the benefits of the current Swiggy One membership, including unlimited free deliveries on food orders and its rapid commerce arm Instamart.

    In 2021, the firm debuted its One loyalty programme, and according to the corporation, members spend over three times as much time on the platform as non-members do. By the end of FY24, Swiggy One had 5.3 million users. The cost of the new programme would be INR 299 for a three-month subscription. Selected users around India will receive invitations to this programme in phases, and current Swiggy One members will also have the opportunity to upgrade to this new membership.

    One BLCK, positioned as a pioneer in the sector, goes beyond fast commerce and food delivery. These advantages, according to Swiggy, include partnerships with companies like Hamleys, Cinepolis, Disney+ Hotstar, and Amazon Prime. Yatra Prime subscriptions are being given out to One BLCK members at no cost as part of the launch offers.

    Swiggy Pushing its Premium Offerings

    Swiggy has been increasingly emphasising its premium offerings. It began testing a premium membership and personal assistant service dubbed Rare earlier this year, giving wealthy clients access to VIP and private events. According to Phani Kishan, cofounder and chief growth officer of Swiggy, Swiggy One Blck is the business-class counterpart for the brand’s clients, improving the factors that are most important to premium users: speed, dependability, and individualised service. For the July–September quarter, Swiggy reported a 30% YoY rise in operating revenue, while its net loss marginally decreased to INR 625 crore.

    By October–December 2025, the company anticipates turning a profit at the group level, largely due to higher profitability in its meal delivery sector. Bolt, a 10-minute meal delivery service that it recently introduced, is now available in more than 400 cities. Currently, 5% of its food delivery comes from Bolt.

    As the Indian food delivery and quick-commerce industries get more competitive, platforms like Swiggy are diversifying their membership services to attract and retain high-value clients.

    Swiggy Downgraded by HDFC Securities; PT Increased to INR 470
    HDFC Securities downgrades Swiggy to a “Reduce” rating while increasing its price target to INR 470, reflecting cautious optimism on the stock.
    StartupTalkyNitin Konde

  • While Raising PT to INR 470, HDFC Securities Downgrades Swiggy to “Reduce”

    HDFC Securities, a broking firm, downgraded Swiggy from “add” to “reduce”; however, it raised its target price from INR 430 per share to INR 470. This would indicate a 9.2% decline from the stock’s last closing price. Swiggy’s stock closed on 4 December’s trading session on the BSE at INR 518.10 per share. During 5 December’s intraday trading session, the stock continued to rise, rising more than 11% to INR 576.95 on the BSE.

    Although Swiggy’s key performance indicators in the quick commerce and food delivery areas are improving, the company still trails Zomato, according to a recent report from analysts at HDFC Securities. According to the broking, Swiggy recorded a 4.8% quarterly increase in monthly transacting customers in the food delivery segment in Q2 FY25, while gross order value increased 5.6% on a quarter-over-quarter basis to INR 7,190 Cr. The company’s vigorous promotion of its subscription service, Swiggy One, was primarily responsible for this.

    Zomato is Still Leading the Race

    According to HDFC Securities, Swiggy continued to lag behind Zomato in the food delivery sector across all KPIs in H1 FY25. In H1, Zomato’s GOV increased by 24%, but Swiggy recorded a 14% growth in the food delivery market. Furthermore, the broking claims that Instamart, Swiggy’s rapid commerce division, is still trailing its Zomato rival Blinkit in terms of growth and unit economics.

    HDFC Securities emphasised that although Swiggy’s dark shop network has seen an improvement in order density, Blinkit has made more progress in terms of unit economics at a comparable scale. The broking stated that although the increase in client acquisition is positive, the present market pricing indicates that the path to convergence in rapid commerce with Blinkit is inevitable.

    Current Financial Structure of Swiggy

    Swiggy was downgraded by HDFC Securities after the Sriharsha Majety-led company’s operating revenue increased 12% QoQ to INR 3,601.45 Cr, but its net loss worsened sequentially by more than 2% to INR 625 Cr in Q2 FY25. Swiggy stated in its Q2 FY25 investor presentation that it aimed to achieve a consolidated adjusted EBITDA profitability by Q3 FY26. Additionally, a new subsidiary that will function in the “sports activities and amusement and recreation activities” section is being established by the foodtech company.

    Even if the food delivery market is more established and less competitive, Swiggy’s poor performance highlights the difficulties it faces, according to another broking business, HSBC Securities and Capital Markets (India). Swiggy was valued at $16 billion by HSBC, which included $1.3 billion in cash and investments, $10 billion for rapid commerce, and $5 billion for food delivery. Nevertheless, it does not anticipate that the overall business will achieve EBITDA breakeven before the fiscal year of 2028.

    Swiggy’s Food Delivery Business Limits Expansion Plans
    Swiggy’s food delivery business is focusing on enhancing operations in existing cities rather than expanding into new locations, prioritizing efficiency and growth.
    StartupTalkyNitin Konde

  • Swiggy’s Food Delivery Business is not Concentrating on Expanding into New Cities

    The food delivery industry has reached a saturation point in terms of the number of cities; thus, foodtech giant Swiggy is concentrating on strengthening its position in the current locations rather than expanding geographically. Following the release of its financial results for the second quarter of FY25, the company emphasised during its earnings call that there is no longer any business case for growing into an additional 50–100 cities. According to the corporation, there isn’t a strong commercial rationale for expanding to another 50 or 100 locations; therefore, doing so would primarily be a selfish exercise.

    Swiggy is instead focusing on expansion in high-potential metropolitan areas with growing migrant populations and developing communities, such as the new Bengaluru and Delhi NCR neighbourhoods. Cities like Bengaluru and the National Capital Region are no longer confined to their central regions. According to Swiggy CEO Sriharsha Majety, the company’s expansion into neighbouring zones—which Swiggy refers to as Tier 1.5 locations—is growing more and more important as new customers in these areas look for affordability.

    Changing Business Strategies

    Affordability is still a major factor, the CEO continued, particularly for markets like regular corporate lunches, where maximising delivery speed by distance is essential. Core city rents are also rising. In the meantime, Swiggy is trying to satisfy the increasing demand from customers for more options for its rapid commerce vertical, Instamart. It is still difficult to strike a balance between this and delivery speed, though. Although consumers anticipate a wide selection of goods, Swiggy claims that its current business strategy can supply up to 20,000 SKUs in 10 minutes. According to Majety, the corporation would have to make a minor compromise by lengthening the delivery time if it wanted to increase the assortment beyond this range.

    Adding New Dark Stores for Business Expansion

    Rahul Bothra, the CFO of Swiggy, told a media outlet last month that the company’s new dark stores would essentially occupy an area that is two to three times larger than its existing dark stores. In addition to expanding the company’s SKU coverage, adding dark stores will provide a variety of delivery options; for example, Swiggy Instamart can deliver some items in 10 minutes and others in 20 minutes, Bothra stated. On December 4, Swiggy announced that its operating revenue had increased by 30% to INR 3,601.45 Cr, while its consolidated net loss had decreased by 4.78% year over year to INR 625.53 Cr. In the quarter ending in September 2024, Swiggy Instamart’s operating revenue increased 135.7% to INR 490 Cr from INR 208 Cr in the same time the previous year.

    Swiggy Expands “Bolt” 10-Minute Delivery to 400+ Locations
    Swiggy extends its “Bolt” 10-minute meal delivery service to over 400 locations, making quick and convenient dining accessible across India.
    StartupTalkyNitin Konde

  • Swiggy Extended its 10-minute Meal Delivery Service, “Bolt,” to More than 400 Locations

    Swiggy Ltd., an on-demand convenience platform, announced on 2 December that it has extended its Bolt 10-minute meal delivery service to more than 400 Indian cities and towns. According to a statement from Swiggy, Bolt was first introduced in Bangalore, Chennai, Hyderabad, New Delhi, Mumbai, and Pune. Today, it operates in Jaipur, Lucknow, Ahmedabad, Indore, Coimbatore, and Kochi.

    The 10-minute meal delivery service has been extended by Swiggy to Tier-2 and Tier-3 cities, including Roorkee, Guntur, Warangal, Patna, Jagtial, Solan, Nashik, and Shillong, the company said. According to the report, the states with the greatest Bolt adoption rates are Andhra Pradesh and Telangana, followed by Haryana, Tamil Nadu, Gujarat, West Bengal, Rajasthan, and Punjab.

    Closely Working with Restaurant Partners for Bolt

    In order to maximise order priority for Bolt orders that contain food products that require little to no preparation time, Swiggy stated that it is actively collaborating with eateries.

    There is no incentive for quick delivery, and delivery partners are not made aware of the difference between Bolt and standard orders for their own safety. According to the corporation, Bolt’s current delivery radius of 2 kilometres fosters familiarity and allows for quicker delivery. Additionally, it stated that giving priority to delivery executives who are nearest to Bolt stores maximises delivery speed.

    Features of Bolt

    Bolt, which was created with speed in mind, specialises in foods that can be served without sacrificing quality, freshness, or taste. Swiggy further stated that it offers a selection of over 10 lakh dishes from over 40,000 restaurant partners.

    Bolt is transforming the dining experience for patrons. It was simple to decide to expand Bolt given the positive feedback the company has received thus far and the increasing enthusiasm from local and national eateries. According to Rohit Kapoor, CEO of Swiggy’s Food Marketplace, the company is excited to expand this experience to even more cities and homes.

    It has collaborated with local businesses like Gwalia Sweets in Ahmedabad, Karachi Bakery in Hyderabad, Shiraz in Kolkata, Irani Cafe in Pune, and KFC, McDonald’s, Burger King, Baskin Robbins, and Starbucks. Restaurants in Tier II cities, such as Baap of Rolls in Roorkee and Varalakshmi Tiffins in Guntur, report that Swiggy Bolt processes more than 10% of their orders.

    The industry leader in meal delivery, Gurgaon-based Zomato, tried 10-minute food delivery in 2022 but ended the trial programme and introduced Zomato Everyday instead. In comparatively shorter amounts of time, Zomato Everyday delivers meals made by home cooks from central kitchens.

    Swiggy’s this Year’s Performance

    In the quarter that ended in June 2024, Swiggy recorded a gross order value (GOV) of INR 6,808 crore, up from INR 5,959 crore during the same period the previous year. During the April–June quarter, the firm had 14.03 million monthly transacting consumers.

    According to a research report published on November 25 by broking firm UBS Securities, Swiggy’s GOV for food delivery grew more slowly than Zomato’s in the first quarter of fiscal 2025, but both businesses are predicted to grow at comparable rates starting in FY26.

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  • A Single-Dish Restaurants are Delisted by Zomato

    Zomato, a prominent player in the foodtech industry, has cracked the whip and delisted several “potentially fraudulent” restaurants after consumers reported several single-dish restaurants on the platform.

    “We have removed all of these eateries from our site after identifying them as possibly fake. We have also looked into any other restaurants that have a very small menu on Zomato and may have listed restricted goods or devised a method to list prohibited things in order to address this more thoroughly,” Zomato stated in a post on X.

    Further Strengthening its Security

    The business claimed that by utilising generic cuisine names like “Merry Berry” and “Naughty Strawberry,” among others, many of these eateries were able to “game” Zomato’s checks. In order to prevent such occurrences in the future, Zomato stated that it has reinforced its fraud checks even further. The foodtech giant reiterated its policy, stating that all eateries listed on its platform must have a permit from the Food Safety and Standards Authority of India (FSSAI). According to the report, the business “actively” prevents products like alcohol, cigarettes, cigars, and vape pens from being featured on its marketplace.

    This comes days after an X user in Chandigarh reported several eateries selling a single meal at exorbitant pricing with “nonexistent addresses.” “Something really shady is cooking on @zomato,” the person wrote, tagging the local police.

    How the Issue Caught the Eye-Balls?

    According to the X user, he attempted to place an order from one of the aforementioned restaurants but was not delivered. He posted, “I attempted to place an order, but it was automatically cancelled after a while, and the restaurant is now showing as closed.” It is important to note that Zomato is the market leader for meal delivery services.

    In a recent report, broking firm Motilal Oswal stated that Zomato’s 58% market share in the food delivery sector increased its lead over Swiggy, which was just launched. Swiggy held a 42% market share, the broking added. In the meantime, Blinkit, a significant player in quick commerce owned by Zomato, maintains its lead in the quick “10 minute” delivery sector with 46% of the market, followed by Zepto (29%) and Swiggy Instamart (25%).

    Some X users expressed gratitude for the change, while others called for stricter measures to be taken against these dishonest eateries.

    An X user commented, “It’s good to see an update from your side regarding the issue that was raised by some users.”

    So you didn’t check those restaurants’ FSSAI licenses? asked another. 

    Another person claimed, “I don’t believe Zomato even visits the restaurant or cloud kitchen. It must be completely online.”

    “If these eateries were selling illegal goods, you should contact the police right once; “delisting” is certainly insufficient,” said one X user.

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  • In Just 10 Minutes, Blinkit’s Massive Order Fleet will Bring PS5, Baggage and More

    According to a media report, Blinkit, Zomato’s rapid commerce division, has started a pilot programme to test a large-order fleet intended for delivering heavier consumer goods within the Delhi NCR area.

    Geysers, air purifiers, luggage bags, and PlayStations are among the things handled by the fleet, according to the report, which guarantees delivery within a 10-minute interval.

    Aligning with the Concept of Express Dark Stores

    As the rapid commerce industry faces growing competition to increase average order values (AOV), the initiative is consistent with Blinkit‘s stated aspirations to create express dark stores for 30-minute delivery of high-value items. As of right now, Blinkit’s AOV is INR 660, up 8% from INR 607 during the same quarter previous year. Zomato refused to share more information regarding the experimental programme as stated in the report.

    Swiggy’s Plan            

    The move coincides with rivals in the rapid commerce market investigating new product categories. According to recent remarks made by Swiggy CFO Rahul Bothra about the company’s impending IPO, rival Swiggy Instamart is creating its own infrastructure for longer delivery times for some categories, but it intends to concentrate on kitchen appliances rather than big electronics.

    A broader deployment in other major metropolitan regions where Blinkit works may result from the pilot’s success in Delhi NCR.

    Competition in Quick Commerce Space Getting Stiffer

    Quick Commerce and e-commerce platforms are engaged in a fierce battle in the thriving online retail market, blurring the boundaries between their business models and encroaching on one another’s territory as part of their expansion strategies.

    For example, fast commerce platforms such as Swiggy, Instamart, Zepto, and Zomato’s Blinkit used to be recognised for delivering groceries and necessities in a matter of minutes, but they have since expanded into other categories, including apparel, cosmetics, toys, and presents. Conversely, e-commerce giants like Amazon intend to join the q-commerce market, and Flipkart has already done so, offering product delivery in less than one hour.

    Customers’ purchasing habits have changed as a result of this progression; they now anticipate that every good, from skincare to gifts to dairy products, will arrive at their door in a matter of minutes. The competition’s ultimate winners are shoppers who value convenience.

    In 2020, it all began with the prompt delivery of groceries, food, and other necessities. However, by introducing a variety of categories like fashion, beauty, electronics, toys, home appliances, kitchen supplies, and more, rapid commerce titans like Blinkit and Zepto are stepping into the world of e-commerce. 

    By strengthening the rapid commerce platforms, this plan will make it more difficult for conventional kirana stores and e-commerce competitors Flipkart and Amazon to compete. Expanding their logistics network beyond groceries and necessities calls for greater manpower as well as the availability of dark stores to hold a high number of SKUs for quicker last-mile deliveries.

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  • The Fintech Business PayU is Being Considered for IPO by Prosus in 2025

    According to a November 13 media report, Prosus, which recently saw a healthy return on its investment in Swiggy at the food delivery startup’s initial public offering (IPO), plans to list PayU, its payments and fintech business in India, in 2025. Ervin Tu, the group chief investment officer for Prosus, was quoted in the report as saying that the listing might occur at a valuation between $5 billion and $7 billion.

    A renowned media outlet reports that UBS just increased PayU’s valuation from $3.7 billion to $4.2 billion, citing improved trading multiples in the global payments market. Listed in Amsterdam and a member of South Africa’s Naspers, Prosus is regarded as one of the largest long-term technology investors globally.

    PayU Was Planned to Get Listed in 2023

    Since late 2023, PayU had planned to go public at a valuation of $5 billion to $7 billion. It was permitted to function as a payment aggregator in April after just escaping a 15-month regulatory prohibition on hiring new merchants. For its primary payments function, it faces competition from companies like Walmart-owned PhonePe and Tiger Global-backed Razorpay. PayU also helps small enterprises and consumers get loans.

    Rapid Expansion of India’s Digital Payment Market is Attracting Investors

    According to Prosus’ 2024 annual report, retail digital transactions in India, one of the world’s fastest-growing digital payments markets, grew 44% year over year in FY24, while payment volume rose 20%.

    India is a “pillar” of the Dutch investor’s strategy, according to Tu. “We have great optimism about the future for India and for us.”

    His remarks follow the successful market debut of Swiggy, another portfolio business, on November 13. Prosus, which still owns a 25% share in the food and grocery delivery company, claimed in a statement that it had made $2 billion from its investment. Fabricio Bloisi, the CEO of Prosus, stated last month that he anticipates more of the companies in his Indian portfolio going public within the next 12 to 18 months. Among other Indian businesses, it owns shares in Meesho, an online marketplace, and Urban Company, a home services provider.

    Sriharsha Majety, the founder and group CEO of Swiggy, stated on the sidelines of the company’s successful initial public offering (IPO) that the Prosus team has been a crucial part of Swiggy’s path to reach this milestone, helping the business at every turn since it started working with it in 2017. Their steadfast faith in Swiggy’s mission has been essential to the company’s success in the quick commerce sector as well as its food and 1P delivery platforms. Swiggy has learnt a lot and garnered useful insights from Prosus’ vast global exposure to the food industry. Swiggy looks forward to strengthening its partnership and leveraging Prosus’ global insights and industry expertise as it continues to develop, expand, and change as a publicly traded company.

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