According to various reports, food delivery firm Zomato raised its platform charge by almost 43% before Diwali celebrations, from INR 7 to INR 10 per order, in order to “keep Zomato running” and preserve services during the holiday season. Similarly another media report cited that Swiggy, another major competitor in the sector, also raised its fee to INR 10. The current charge for these platforms is 400% higher than the INR 2 per order platform fee that was first implemented in August 2023.
In places like Delhi and Bengaluru, Zomato raised their platform cost by 20% earlier in July, from INR 5 to INR 6 per order. According to Zomato’s annual report for the fiscal year 2022–2023, 647 million orders were placed overall. According to a rough estimate, the business may make an additional INR 5.7 million a day if the platform raise were implemented nationwide.
Food Lovers Express Their Disappointment at X
During the holiday rush, Zomato and Swiggy raised their platform fees, which infuriated foodies. Although the move to raise the platform charge did not sit well with users, the nation’s two largest food delivery apps are aiming to profit from an increase in orders during the holiday season.
The updated platform charge was the subject of debate on social networking site X. Ordering in has become too costly to be sustainable, as noted by several X users, and meal delivery fees have been steadily rising.
In August 2023, Zomato started charging INR 2 per order as a platform charge. Zomato increased the platform fee to INR 4 per order by January 2024. At the moment, each order costs INR 10. All users, including Gold members, are subject to the platform fee, which is in addition to Zomato’s delivery fee.
The Platform Fee Does Not Have a Set Formula
Zomato’s Chief Financial Officer, Akshant Goyal, stated during the company’s first quarter earnings call for FY25 that the platform charge is being changed “step by step” in order to determine how sensitive customers are to price adjustments. There is no set formula for the platform fee, Goyal had stated at the time, in reference to the likelihood of greater fees on days when there are more orders.
Zomato’s Current Financial Performance
On October 22, Zomato, headed by Deepinder Goyal, released its September quarter results. The company’s operating revenue increased 68% year over year to INR 4,799 crore.The fastest-growing quick commerce sector was the main driver of the total growth, although Zomato’s biggest source of income and profits, the meal delivery company, had a 21% increase in gross order value year over year to INR 9,690 crore.
Because it was a seasonally bad quarter, Zomato’s food delivery company saw take rates drop sequentially by 20 basis points to 24.1% during the July–September period. According to industry observers, there is little chance that the rise in platform fees imposed by food delivery businesses will affect customer behaviour. According to Zomato’s fiscal 2024 annual report, platform fees brought in INR 83 crore for the company.
Due to a growing middle class, rising internet usage, and shifting lifestyles, India’s food delivery market has experienced exponential growth in recent years. These startups guarantee that delicious meals will arrive at your door quickly, whether you are craving international or traditional Indian cuisine. The top ten food delivery startups in India that are changing the food scene are detailed in this detailed guide:
Swiggy, founded in 2014, is one of the leading food delivery startups in India. It was established by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini. Swiggy has successfully expanded its operations to numerous cities across India and has partnered with thousands of restaurants.
Key Features
Real-time Order Tracking: Allows users to track their orders in real-time.
Extensive Restaurant Network: Partnerships with a wide range of restaurants.
Swiggy Genie: Offers additional services like picking up and delivering packages.
Impact
Swiggy has transformed the food delivery landscape with its efficient delivery system and customer-centric approach. The platform ensures timely deliveries and a variety of food options, making it a top choice for food lovers.
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, started as a restaurant search and discovery service. It quickly evolved into a food delivery giant, competing head-to-head with Swiggy.
Key Features
Comprehensive Restaurant Listings: Detailed information about restaurants, including reviews and ratings.
Zomato Gold: Membership program offering exclusive discounts and offers.
Global Presence: Operations in several countries beyond India.
Impact
Zomato has significantly enhanced the food delivery experience with its user-friendly interface and extensive restaurant partnerships. The platform’s reviews and ratings system helps users make informed decisions.
Dunzo
Website
www.dunzo.com
Rating
4.7
Founded
2014
Platforms
Web, IOS/Android
Dunzo – Top Food Delivery Startups in India
Dunzo, founded in 2015 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, is a hyperlocal delivery service. While it delivers groceries, medicines, and other essentials, its food delivery service is highly popular.
Key Features
Multi-utility Service: Delivers a wide range of items, not just food.
Quick Deliveries: Known for its fast and efficient delivery system.
User-friendly App: Easy-to-use interface with real-time tracking.
Impact
Dunzo has carved a niche in the food delivery market with its versatile service offerings. It provides a seamless delivery experience, making it a go-to option for many users.
Box8
Website
www.box8.in
Rating
4.6
Founded
2012
Platforms
Web, IOS/Android
Box8 – Top Food Delivery Startups in India
Box8, founded in 2012 by Anshul Gupta and Amit Raj, is a food delivery startup specializing in Indian meals. The company focuses on delivering freshly prepared, wholesome meals.
Key Features
Indian Cuisine Focus: Specializes in Indian meals prepared with fresh ingredients.
All-in-One Meal Boxes: Offers meal boxes that include a main course, sides, and dessert.
Quick Delivery: Ensures that food is delivered hot and fresh.
Impact
Box8 has gained popularity for its focus on Indian cuisine and quality meals. The startup’s commitment to delivering fresh and tasty food has made it a favorite among Indian food lovers.
FreshMenu
Website
www.freshmenu.com
Rating
4.5
Founded
2014
Platforms
Web, IOS/Android
FreshMenu – Top Food Delivery Startups in India
FreshMenu, founded in 2014 by Rashmi Daga, is a food delivery startup that offers gourmet meals prepared by professional chefs. The company focuses on delivering high-quality, freshly prepared food.
Key Features
Gourmet Meals: Offers a variety of gourmet dishes prepared by expert chefs.
Daily Menu: Features a changing menu with new dishes every day.
Fresh Ingredients: Emphasizes the use of fresh and high-quality ingredients.
Impact
FreshMenu has redefined the food delivery experience with its focus on gourmet meals. The startup’s dedication to quality and taste has earned it a loyal customer base.
Faasos
Website
www.eatsure.com
Rating
4.1
Founded
2011
Platforms
Eatsure, Swiggy, Zomato
Faasos – Top Food Delivery Startups in India
Faasos, founded in 2011 by Jaydeep Barman and Kallol Banerjee, is a food delivery startup known for its wraps and rolls. The company has since expanded its menu to include a variety of Indian and international dishes.
Key Features
Diverse Menu: Offers a wide range of dishes, including wraps, rice bowls, and desserts.
Quick Service: Known for its fast and efficient delivery.
Innovative Packaging: Uses eco-friendly and convenient packaging.
Impact
Faasos has made a mark in the food delivery industry with its diverse menu and quick service. The startup’s innovative approach to food delivery has resonated with customers across India.
Oven Story, founded in 2016, is a food delivery startup specializing in pizzas. The company focuses on delivering a variety of gourmet pizzas with unique toppings and flavors.
Key Features
Gourmet Pizzas: Offers a range of pizzas with diverse toppings.
Customized Orders: Allows customers to customize their pizzas.
Quick Delivery: Ensures timely delivery of hot and fresh pizzas.
Impact
Oven Story has become a favorite among pizza lovers for its gourmet offerings and customization options. The startup’s commitment to quality and taste has set it apart in the competitive food delivery market.
MojoPizza
Website
www.mojopizza.in
Rating
4.7
Founded
2017
Platforms
Web, IOS/Android
MojoPizza – Top Food Delivery Startups in India
MojoPizza, part of the Box8 family, was established to revolutionize pizza delivery in India. It offers a variety of pizzas with generous toppings and quick delivery.
Key Features:
Variety of pizza options
Generous toppings
Quick service
Attractive offers
Biryani By Kilo (BBK)
Website
www.biryanibykilo.com
Rating
4.7
Founded
2015
Platforms
Web, IOS/Android
Biriyani by Kilo – Top Food Delivery Startups in India
Biryani By Kilo, founded by Kaushik Roy and Vishal Jindal in 2015, focuses on delivering a wide range of biryanis cooked in traditional handis. The startup ensures that each order is prepared fresh upon request.
Key Features:
Freshly prepared biryanis
Variety of regional biryanis
Traditional cooking methods
Quality ingredients
India’s food delivery market is dynamic and varied, with new businesses constantly coming up with new ideas to satisfy customers. These top 9 food delivery startups in India offer a wide range of options to satiate your cravings, whether you are looking for quick snacks, healthful options, or gourmet meals. These businesses have revolutionized food delivery by utilizing cutting-edge technology and providing exceptional customer service.
FAQ
How many food delivery startups are there in India?
India has over 500 food delivery startups, including major players like Swiggy, Zomato, and many regional platforms.
Who is the leader of food delivery in India?
Swiggy is the leader in food delivery in India, followed closely by Zomato.
Why did Uber Eats fail in India?
Uber Eats failed in India due to fierce competition from local giants like Swiggy and Zomato, which had a stronger market presence. Additionally, Uber Eats struggled with high operational costs and an inability to gain significant market share, leading to its sale to Zomato in 2020.
Which is the fastest food delivery service in India?
Swiggy is often considered the fastest food delivery service in India, thanks to its large delivery network and technology-driven operations. Zomato also provides quick service, especially in major cities, but Swiggy tends to lead in terms of speed and efficiency.
According to the company’s pre-listing prospectus, Swiggy, a food and grocery delivery service that is about to make its first public offering (IPO), gave its founders and senior management $271 million in employee stock options as part of its most recent stock-based compensation plan, which was implemented in April of this year.
Sriharsha Majety, founder and group chief executive officer of the Bengaluru-based company, has been allocated nearly $200 million worth of this stock. The remaining sum was given to food marketplace CEO Rohit Kapoor, cofounders Nandan Reddy and Phani Kishan Addepalli, chief financial officer Rahul Bothra, chief technology officer Madhusudhan Rao, and recently hired Swiggy Instamart CEO Amitesh Jha.
How This Esop Will Benefit Majety?
Majety, who, on a fully diluted basis, owns 6.23% of the company, may receive an extra 2.2-2.5% interest from the additional Esops awarded under the 2024 programme. Through the offer for sale (OFS) portion of the IPO, he will be selling a share valued at $7.5 million. Majety and Reddy traded Swiggy shares through secondary trades between July and September. Reddy sold shares for $12 million, while Majety offloaded a stake valued at almost $23 million.
While Kapoor, who has been with the firm since August 2022, was given stock options worth $9.8 million under the most recent Esop plan, Jha, who joined Swiggy in September from the online retailer Flipkart, was given options worth $13.3 million. In the most recent Esop scheme, Swiggy’s top human resources officer, Girish Menon, was also given $8.6 million worth of stock options.
Esop 2024 Scheme
As per the Esop 2024 scheme, the stock options granted to the senior management of the firm have a vesting term ranging from 1 to 8 years from the date of issue. Following the public listing, any fluctuations in the company’s stock price may also have an impact on how much the issued stock rewards are valued.
Founders and senior management are often given additional stock options by companies as a means of encouraging them to perform well prior to going public. In consumer internet companies, where founders witness a significant diluting of their interests over multiple fundraising rounds, this pattern is particularly common.
Swiggy filed regulatory documents with the Securities and Exchange Board of India (Sebi) in April for its $1.25 billion initial public offering (IPO) via the regulator’s confidential filing process. With Sebi’s permission, it filed an amended draft prospectus in September.
The offering’s initial $450 million fresh issue component, however, may be increased to $600 million. Top Swiggy investors to take part in the OFS portion of the deal, in addition to Majety and Reddy, are Prosus, Norwest Venture Partners, Elevation Capital, Accel, Coatue, and Alpha Wave Global, which is the company’s largest shareholder.
With the aim of effectively managing bulk orders, the food delivery startup Swiggy, preparing for an IPO, has formally introduced its XL electric vehicle (EV) fleet in Gurugram. This new service was launched on 5 September 2024, following a fruitful trial period throughout the holiday season.
The debut of Swiggy Food Marketplace is timed to coincide with a rise in demand for bulk purchases when family and friends get together to celebrate, according to Sidharth Bhakoo, National Business Head. Since food is intimately linked to good times and laughter, Swiggy is seeing a rise in demand for large orders during get-togethers amongst friends and family. According to Bhakoo, owing to the on-going festive season, when there is happiness and cheer around, it is the right time to roll out this service.
High-Tech Vehicle Will Deliver the Food
Temperature-controlled compartments are a feature of the XL fleet that guarantee food quality while in transit. During the Haryana state assembly elections, the fleet has already provided 3,500 meals to election officials at over 580 voting places in the constituencies of Gurugram and Badshahpur since the launch of this service.
Twenty Swiggy XL EVs provided officials with three meals spread over two days, giving them the vital nourishment they needed throughout the challenging election season. The Deputy Commissioner of Gurugram, Nishant Kumar Yadav, praised Swiggy for their role in the election process and urged them to keep up their civic engagement.
The initiative’s environmental benefits were emphasised by Sidharth Bhakoo, who pointed out that the all-electric fleet reduces carbon emissions by minimising the need for several delivery journeys.
This debut comes after Swiggy recently unveiled “Bolt,” a 10-minute meal delivery service that can be found in major cities including Bengaluru, Chennai, Hyderabad, Delhi, Mumbai, and Pune and that delivers food within a 2-kilometre radius.
Company’s Financial Report Card
The business also recently introduced “Cafe,” a service that delivers snacks and drinks in 15 minutes. Despite these advancements, Swiggy’s losses increased by 8.31% year over year to INR 611 crore in the first quarter of FY25, and the company recorded slower growth than its competitor Zomato.
Currently gearing up for its impending initial public offering (IPO), the foodtech business has gained clearance from shareholders to raise the new issue size to INR 5,000 crore. In order to maintain its competitive edge in the food delivery industry, Swiggy is getting ready to expand its XL EV fleet to include additional cities in addition to Gurugram.
According to a media source, the foodtech giant Swiggy’s cheating complaint against a former employee was recently forwarded to the Karnataka Crime Investigation Department (CID) for additional investigation. The investigation gained momentum once the business said that it discovered the former employee had conspired with 12 other individuals and businesses to steal from Swiggy.
Swiggy initiated legal action, according to a media report, following the discovery that a former employee had taken away INR 32.67 crore from the company over a period of time. Swiggy first filed a complaint with the Bengaluru Marathahalli Police Station and then assembled an outside team to investigate the situation. Given the amount involved, the Marathahalli Police Station officers transferred the case to the CID after starting an investigation.
Statement From Officials
Police officials stated that they had forwarded the case to the Crime Investigation Department because of the significant sum of money involved. They are currently looking into the matter.
A media outlet received confirmation from CID sources that they have taken over the case. According to a top official, “We are currently investigating, and there will be a breakthrough soon.”
What Exactly Happened?
The former employee of Scootsy Logistics Private Limited, a subsidiary of Swiggy, and 12 other people were accused of stealing INR 32.67 crore over a period of time. On November 27, 2023, the FIR was filed. Swiggy’s Scootsy purchases goods from one company and resells them to another.
Srikhara KM, the primary accused in this case, is accused of defrauding RPGS Associates, Swiggy’s vendor, by fraudulently transferring INR 32.17 crore between August 2021 and February 2022, according to the cheating complaint filed by Scootsy Logistics, Swiggy’s business-to-business (B2B) arm. The complaint further stated that throughout the period, an extra INR 50.06 lakh was transferred to other companies for unidentified work.
This means that throughout those roughly six months, Swiggy lost a total of INR 32.67 crore. Previously, Srikhara served as the finance manager and later the general manager of Scootsy, according to the FIR. RPGS Associates, Fresh Farm Agro Pvt Ltd, Acuity Stationery Pvt Ltd, First Choice Grocery Ltd, Amaxa Pharma Prvt. Ltd, Packingocity Pvt. Ltd, and “others” are among the companies included in the complaint.
Executives including Rasitha Prasad, Swara Prasad, and Chackingal Prasad Nair (directors of 360 Fresh Farm Agro Pvt Ltd), as well as Chakingal Prasad Nair (RPGS Associates), are named as co-accused in the FIR. A case has been filed by Indian Penal Code sections 34 (common intention), 408 (criminal breach of trust by employee), and 420 (cheating).
Shocking Development Before IPO
All of this is happening just as Swiggy is gearing up for one of the biggest initial public offers (IPOs) in India, which is set to take place later this year when it plans to go public on the stock markets. Swiggy intends to raise $1.25 billion, or INR 10,414 crore, in total.
Swiggy will issue new shares valued at INR 3,750 crore, while the offer for-sale component would be about INR 6,664 crore (comprising 18.53 crore shares). Swiggy submitted its first updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on September 26.
According to previous media reports, the business is expected to boost the value of its IPO by INR 1,250 crore, or $150 million, bringing the total to INR 11,664 crore, or $1.4 billion.
“Project Next” is a career growth project that has been created by Swiggy, which is on its way to becoming an initial public offering (IPO). The company is looking to tap into the partner network to speed up the process of restaurant onboarding.
By participating in this effort, the platform’s delivery partners are allowed to assume new positions within the organization, including sales executives, amongst other positions. The project is a component of Swiggy Skills, a bigger initiative that provides individuals in a variety of jobs with opportunities for employment, internships, and training, as well as opportunities to acquire new skills.
Earlier this month, Swiggy Skills was introduced to the public in conjunction with the Ministry of Skill Development and Entrepreneurship.
How Project Next Can Further Support Delivery Partners?
By means of Project Next, delivery partners are anticipated to be accountable for the onboarding and management of Swiggy’s expanding restaurant network, particularly in Tier II and Tier III locations, to provide eateries with high-quality service on the platform.
Across India, Swiggy collaborates with close to 4 lakh delivery partners. While a lot of people appreciate the site since it offers flexible income opportunities, some want more.
“As part of Swiggy Skills effort, we developed Project Next to empower this particular demographic.” According to Rohit Kapoor, the Chief Executive Officer of Swiggy Food Marketplace, this one-of-a-kind program assists delivery partners in making the transition from “blue collar” to “white collar” workers.
According to a statement released by the firm, Project Next has successfully led to the transformation of one hundred Swiggy delivery partners into sales executives. These sales executives have successfully onboarded nearly 350 eateries. The company intends to broaden the scope of this program by initiating the transition of hundreds of additional delivery partners across more than 150 expanding regions. These markets include Vadodara, Amritsar, Nashik, Agra, and Dharwad.
Project Next is the most recent initiative to be revealed as part of the ‘Swiggy Skills’ initiative, which was announced earlier this month in collaboration with the Union Ministry of Skill Development and Entrepreneurship.
It was stated in the release that Swiggy will collaborate with the discovery of employment opportunities for 3,000 individuals in restaurant operations and various aspects of retail management. Additionally, Swiggy will facilitate online skill development and upskilling for almost 240,000 delivery partners and the staff of its 200,000 restaurant partners as part of the initiative.
Zomato has become the first digital marketplace to address the issue of distinguishing between real and artificial graphics by announcing that it will prohibit the use of images generated by artificial intelligence in restaurant menus and promotional materials.
According to Rakesh Ranjan, chief executive officer of Zomato’s food ordering and delivery business, eateries that do not comply with the new guideline will be removed from the platform beginning on September 16.
Taking Immediate Action
There are already 276,000 restaurant partners on Zomato, and only 10% of them use artificial intelligence in any capacity. Of those restaurants, only 2% rely only on photos created by AI. The expanding use of artificial intelligence in this context, on the other hand, is seen by Zomato as a danger to authenticity.
This was implemented by the company since it observed the problem beginning to become noticeable. It is necessary to handle it as soon as possible, according to Ranjan, even though it is not yet widespread. Zomato also asserts that it has developed artificial intelligence capabilities that are able to differentiate between real photographs and images generated by AI with an accuracy rate of 90%.
Assistance for Eateries Going through Change
Zomato is providing inexpensive photoshoots to restaurants through its network partners in order to aid them throughout this changeover. Prices for the service range from INR 4,000 to INR 5,000, with the exact amount being determined by the percentage of the menu that requires photography. To provide a point of reference, the average cost for a small restaurant to cover 70% of its menu with professional photographs is between INR 7000 and 15000.
Ranjan noted that artificial intelligence is still essential in areas such as food categorisation and nutrition labelling throughout the food delivery and rapid commerce sectors, despite the fact that Zomato is taking a firm stance on images generated by AI.
Message From Zomato’s CEO
According to Deepinder Goyal, CEO of Zomato, the company uses a variety of artificial intelligence (AI) techniques to improve the efficiency of its workflows.
The employment of artificial intelligence in the creation of graphics for food on restaurant menus is, however, something that we highly discourage. Artificial intelligence-generated photographs of food and dishes are deceptive, and we have received a great number of client complaints regarding this matter. Customers claim that this results in a breach of trust, which in turn leads to an increase in the number of complaints and refunds, as well as a decrease in ratings.
Since we will be actively beginning to remove such photos from menus by the end of this month, we strongly encourage our restaurant partners to refrain from employing artificial intelligence (AI) for dish photographs in restaurant menus from this point on. In addition, we will no longer accept photos of dishes that were generated by artificial intelligence (to the extent that we are able to identify them through automation).
Swiggy Opting Different Strategy
Alternatively, Swiggy, which is Zomato’s competitor, is taking a different approach by collaborating with Spyne.ai to provide its restaurant partners photographic services that are powered by artificial intelligence.
An accelerator programme is also available through Swiggy, which provides rewards to eateries that meet a predetermined image threshold standard.
The Central Government has partnered with Swiggy, a fast-commerce and food-delivery company, to enhance internship and job possibilities, according to a statement released on September 7.
An initiative was launched by the Bengaluru-based startup with the Ministry of Skill Development and Entrepreneurship to offer job opportunities and skilling within the company’s food delivery and rapid commerce networks. The 2.4 lakh delivery partners and employees of the affiliated restaurants with Swiggy are anticipated to reap the benefits of the cooperation. Jobs, internships, and training in restaurant management and other areas of retail management are likely to be created as a result of this program.
Skill India Digital Hub
As part of its Skills commitment, Swiggy will provide its employees with access to online training modules, certificates, and courses through its delivery partner platform’s integration with Skill India Digital Hub (SIDH).
According to Jayant Chaudhary, the Union minister of state (independent charge) for skill development and entrepreneurship (MSDE), today’s alliance exemplifies the power of public-private partnerships to expand opportunities for the logistics industry’s workforce. The ministry is hoping that more corporations will get involved because there is a lot of potential in this field.
Almost 2.4 lakh delivery partners and the staff of its 2 lakh restaurant partners will have easy access to online skill development courses, offline certifications, and training modules, according to Rohit Kapoor, CEO of Swiggy Food Marketplace. The company intends to integrate with MSDE’s Skill India Digital Hub (SIDH) across its partners’ apps.
Through its Swiggy Instamart activities, the company will be able to recruit 3,000 people nationwide. Additionally, 200 individuals who have been taught by MSDE will be provided with internship opportunities in its senior-level rapid commerce activities, according to Kapoor.
Introducing Incognito Mode Feature
In the meanwhile, Swiggy announced the debut of its Incognito Mode, a first in the industry that lets customers shop for food and other items anonymously.
Incognito Mode prevents these orders from being saved in the app’s history, so you won’t have to worry about accidentally deleting them when you’re planning a surprise, treating yourself, or making a secret purchase. You may place orders on Swiggy Food and Instamart with confidence when you use Incognito Mode.
According to Swiggy, Incognito Mode is perfect for buying personal wellness products on Swiggy Instamart or any other kind of purchase when the buyer would like to keep their identity hidden.
“As social as our lives are becoming, there are still things we prefer to keep private, and Incognito Mode is designed to address that need,” added Kapoor.
Incognito Mode protects the privacy of customers’ choices, whether they are placing a dinner order or making a short transaction. We are thrilled to provide our users with a smooth experience that allows them to enjoy Swiggy’s numerous services while enhanced privacy is prioritized.
Ten percent of Swiggy users have access to the functionality right now, and the rest will get it in the next few days.
Users can access Incognito Mode by simply toggling a button in their cart. A confirmation message will show up after Incognito Mode is turned on to let you know. Customers can monitor their orders for up to three hours after delivery to address any issues that may arise after they’ve received their packages. Following this, the order is subtly removed from the order history, guaranteeing that the purchase will stay confidential.
The auto ancillary company Hindustan Composite has purchased a minority share in the online food delivery company Swiggy, which is planning to go public shortly. In the days that followed the acquisition of a minority investment in the Bengaluru-based company by Amitabh Bachchan’s family office, this new development has taken place.
According to a disclosure that was submitted through the National Stock Exchange (NSE), the board of directors of Hindustan Composite has struck an agreement with Swiggy to acquire 1,50,000 equity shares, which will result in an investment of INR 5.17 crore.
The report went on to state that as of March 2023, Swiggy’s net value was an impressive INR 9,810 crore, which is equivalent to $1.18 billion. To gain both short-term and long-term benefits, Hindustan Composite intends to complete this minor acquisition by the 30th of November in the year 2024.
Swiggy Planning to Raise INR 3,750 Crore via a Fresh Issue
In May, Swiggy submitted documents for an initial public offering (IPO) through a confidential process. With the help of a new issue of equity shares and an offer for sale of up to an aggregate sum of INR 6,664 crore ($800 million), the company would be able to raise a maximum of INR 3,750 crore ($450 million) through its first public offering. Media sources indicate that the company will shortly submit draft initial public offering documents to SEBI.
In July, Swiggy further launched its sixth employee stock ownership plan (ESOP) liquidity program, which had a total value of $65 million. It claims to have permitted over INR 1000 crore worth of ESOPs liquidity throughout five events, which benefited three thousand and two hundred employees.
In addition, the company that is supported by Prosus strengthened its leadership team by appointing new chief executive officer (CEO) and chief operating officer (COO) positions in the first week of November.
In the first three quarters of the fiscal year 24 (FY24), Swiggy’s revenue was INR 5,476 crore, while the company suffered a loss of INR 1,600 crore. It has not yet submitted audited results for FY24.
According to the data provided by the stock exchange, the competitor of Swiggy, Zomato, is currently valued at $28.3 billion. During the first three months of fiscal year 24 (FY24), the company that is run by Deepinder Goyal reported a revenue of INR 4,206 crores and a profit of INR 253 crores.
The media has reported that Amazon aims to launch its fast commerce service in India in the first quarter of 2025. The US-based eCommerce giant is refocusing its strategy to compete with rival Flipkart, which has just joined the fast-growing category with its ‘Minutes’ service.
Amazon India has designated a senior executive to spearhead the creation of its speedy commerce strategy in keeping with this approach. This move is part of a larger effort to reorganize its leadership to better compete in the rapidly expanding Indian market.
Exploring the Possibility of Acquiring a Stake in Swiggy
Reportedly, Amazon is looking into buying stakes in Swiggy, specifically its Instamart quick service platform.
According to a media report, a precise schedule has been established, but the foundation for the rapid commerce vertical has been ongoing for some time. Amazon has been pushing the project forward internally.
Since Amazon has not yet introduced a global quick commerce service, the launch of this new service will be subject to permission from Amazon’s headquarters. The situation is further complicated because Manish Tiwary, Amazon’s chief of India, is presently serving his notice term and is scheduled to depart the company in October.
30-Minute Delivery Is Amazon’s Goal for Speedy Commerce
After getting a head start in the grocery delivery market with its Pantry service, Amazon has been perfecting its strategy by combining its fresh two-hour service with next-day delivery. The fulfillment of these deliveries is handled by More Retail stores, a joint venture with Samara Capital, and customers also have the option of store pick-ups.
The 30-minute delivery trend is changing, even though Amazon’s next-day customer base for groceries and non-grocery items is still rather large.
Even if the final product is still in the works, a media report hinted that Amazon might keep slotted deliveries as a tactic, targeting certain SKUs.
Over the course of 2024, the rapid commerce sector experienced substantial changes, and even more changes are on the way. The Mumbai-based firm Zepto is quickly growing its dark store networks and SKUs. In less than two months, the company will finish a $1 billion fundraising round.
Indian Ecommerce’s New Battlefield
According to sources within the business, eCommerce platforms will increase their rapid commerce offerings to encompass 20,000+ products this Diwali, leading to fiercer competition.
New Delhi and Mumbai are the latest cities to get Flipkart’s Minutes service, which was first launched in Bengaluru earlier this month. At the same time, BigBasket is ditching its present hybrid model of scheduled and quick deliveries in favor of a quick-delivery-only strategy.
1Lattice and Datum Intelligence predict that the value of India’s eCommerce business increased by 18-20% in the first half of this year, with grocery sales increasing by more than 38% due to a dramatic rise in fast commerce.
Nitin Konde
