During the last weekend, I was thinking if I can have the best momos of Kolkata from Denzong Kitchen delivered at my home. I was in no mood in sacrificing my lazy hours to go out, wait in a queue outside the restaurant for 30-40 minutes until the turn comes to satisfy my taste buds with the mouth watering dishes. However, Denzong Kitchen didn’t have any home delivery facilities. A good friend of mine Sumit, who earlier introduced me to the momos of Denzong Kitchen, solved my problem. This time, he suggested me to install the Swiggy application on my android phone and order the dishes of my choice from amongst the listed restaurants.
I was happy to get my desired food home delivered. What impressed me the most is the delivery time which Swiggy took. I placed the order at 3:20 PM and got it at 4 PM. To add more, I even got a discount of Rs. 100 on my first order using Sumit’s referral code. Today, we are sharing the inspiring success story of the food ordering start-up Swiggy.
Swiggy is a new name in the food ordering business of India. It was founded by Sriharsha Majety, a BITS Pilani and IIM Calcutta alumnus, Nandan Reddy, a BITS Pilani alumnus, and Rahul Jaimini from IIT-Kharagpur in August 2014. Prior to initiation of operations of Swiggy, the partners worked on another start-up called Bundl. It served as a courier aggregator and offered logistics marketplace to some e-commerce companies of Bangalore. Although, the initiative was a success, the partners chose to close it down only to stride further towards a larger goal. They identified that their project may not realize high growths because of the already existing major players like Flipkart, Amazon, Snapdeal who were offering free marketplace support to the sellers throughout India. The founders were quick to migrate to another business idea. They saw ample growth potential in the food industry and started their new venture with Swiggy. It was started with a seed capital of Rs. 10 Lakh partnering with restaurants in and around Koramangala region of Bangalore.
Swiggy helps its users in finding a restaurant near their locality and order food from the desired restaurant. A delivery boy from Swiggy picks up the food from the restaurant and gets it delivered. The entire process of ordering food online is pretty simple and hassle free. One may easily place an order either from their website or from their smartphone application. Swiggy works on a commission based business model. It charges a certain amount of commission from its partner restaurants. This business model is also increasing the businesses of the restaurants in a big way. It gives them the access to many more customers. Also, there are many restaurants that don’t have home delivery facilities. Swiggy does it for them. Earlier, this food ordering start-up used to levy a small delivery charge on customers, however, the charges have been waived off recently to attract more users.
So far, Swiggy has raised USD 18 million in its Series A and Series B fundings from Accel partners, SAIF partners, Norwest Venture Capital and an undisclosed global investment entity. With the funds, the company penetrated into the markets of several other cities. Presently, it offers services in 7 cities of the country namely Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai, Pune and Kolkata. The founders have plans in expanding to few other cities in the coming months.
There are certain advantages which Swiggy enjoy over its competitors like Foodpanda, Just Eat etc. Swiggy don’t have any minimum order limit. This means you can even order the minimum priced item from a listed restaurant and Swiggy shall deliver it at your home. Also, while other food ordering portals don’t facilitate the end delivery to its users, Swiggy maintains its own delivery channel so that the partner restaurants need not have to bother about the delivery of foods. Every delivery boy at Swiggy is assigned only one task at a time. It helps in reducing the time of delivery.
The food ordering market in India is still at its initial stages with very few companies competiting with each other. Companies like Swiggy are sure to grow few folds as long as their strategies are right. Presently, the young start-up is concentrating more in creating a strong customer base with lucrative offers and referral bonuses. After all we Indians are always price sensitive and the markets of the country follow the same way!