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Case Study on Swiggy : Business Model, New Competitors and Marketing Strategies

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Swiggy is food ordering and delivering company based in Bangalore. It provides a single window for ordering from a wide range of restaurants and have their own exclusive fleet of delivery personnel pick up orders from restaurants and deliver it to customers.It is a complete food ordering and delivery solution that connects neighborhood restaurants with urban foodies.

Swiggy Founders:

Swiggy was founded by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini in August 2014. Nandan Reddy aged 29 and Sriharsha Majety aged 31 both are both alumni of Birla Institute of Technology and Science (BITS) Pilani while Rahul Jaimini aged 31 is an alumnus of IIT Kharagpur.


Nandan Reddy and Sriharsha Majety in 2013, started their first venture named Bundl, which was a logistics aggregator that connected small and medium companies to courier service providers. After almost a year in business, they realized their focus had to change. They had spotted the need for an online hyperlocal logistics company in the restaurant industry. Then In August 2014, the duo rolled out the online food ordering and delivery startup Swiggy, along with Rahul Jaimini.

Related Post- Top 10 Logistics Companies in India

Swiggy Journey:

Swiggy began its Journey from Bengaluru with six delivery executives and 25 restaurants on its platform. In the time of 3 years, it has scaled up with over 6,000 delivery executives across India in more than 8 cities like Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata, and Pune.

Swiggy Business Model:

Swiggy has two major revenue streams.

  1. The major part of Swiggy’s revenue from commission it collects from restaurants for lead generation and for serving as a delivery partner.
  2. Swiggy also charges a nominal delivery fee from customers on orders below a threshold value which 200 rupees for most cities.

Swiggy Funding:

Swiggy is backed by one of best investors available in the market. Swiggy has raised a total of 75.5 million dollars in funding from various investors, including Bessemer Venture Partners, Norwest Venture, Accel Partners, SAIF Partners, Harmony Venture Partners, RB Investments and Apoletto.

Swiggy Competitors:

Indian food delivery market is valued at 15 billion dollars and set for an exponential growth. Food delivery has become a very competitive market in India. Swiggy is in direct competition with major on-demand food aggregators like Zomato. Whereas there are other
small startups like Foodpanda and Faasos also in the competition.

Now that Uber has finally released its food delivery app UberEATS in Mumbai and Google has launched its hyperlocal services and meal delivery app Areo in Bangalore and Mumbai. The competition is getting tougher for Swiggy. Swiggy is aiming to maintain its market share by keeping their maximum focus on 8 major cities which are Mumbai, Pune, Bangalore, Hyderabad, Chennai, Delhi, Gurgaon, and Kolkata.

Swiggy Marketing Strategies

Swiggy’s marketing strategy consists of both online and offline marketing campaigns.It promotes its campaigns via Facebook, Twitter, Youtube, Pinterest, and Instagram. Some of its campaigns include Secondtomom,#DiwaliGhayAayi, #SingwithSwiggy and Know your food series of pictures and food walks in a local area. The company has successfully built its brand awareness and connects with its audience through these channels. Their facebook page is quite active with regular updates, averaging to one post a day. Swiggy uses its Social media not only for campaigning but to engage with its customers from solving the greviences to taking the feedback.





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Last Updated on January 31, 2022 by Vishal Ravish