In 2022, the Indian food delivery market may surge to US$12 billion
According to foreign media The Spoon , Indian food delivery service company Swiggy has completed a J round of financing of US$1.25 billion. This round of financing was led by SoftBank Vision Fund and Prosus Ventures. Companies such as Falcon Edge Capital, Amansa Capital, Think Investments and Carmignac also participated in the investment. So far, Swiggy has raised more than $2.9 billion in funding, and the company is valued at approximately $5.5 billion.
Swiggy was founded in 2014 by Sriharsha Majety in India, aiming to provide users with takeaway express service. The company’s development model is similar to the US group review of business models, including providing groceries, beauty parlors, and called the car payment, including multiple categories of service delivery. In terms of business model, depending on the city, customers need to pay 20 to 24 rupees for each order, and Swiggy also charges 15-25% commissions from restaurants.
Food delivery companies are one of the companies most severely affected by the new crown epidemic. Swiggy’s average order volume in 2020 is only 35-40% of 2019. At the same time, further affected by the epidemic, Indians gradually tend to cook at home instead of ordering food online. Therefore, Swiggy has begun to try to launch DIY food packs, and has begun in West Bengal, Orissa, and Jharkhand. It sells alcohol, and it also expanded the grocery delivery service Swiggy Stores to 125 cities.
Source: Enterprise’s official website
Since July 2020, Swiggy has launched a “45-minute arrival” grocery delivery service-Instamart in Bangalore and Gurgaon. At the beginning, this service only launched alcohol delivery services in small cities, and then cooperated with bookstores to provide academic books for students in Kerala and West Bengal, followed by pet food, gourmet groceries, and health care. Products and meat delivery business.
It is reported that through this service, Swiggy’s total product value of food delivery has returned to 85% of its pre-epidemic level, but the quantity has not returned to normal. At the same time, through this new service, Swiggy positions itself as a convenient solution provider for hyper-localization needs.
Swiggy’s competitors: one is the local counterpart Zomato; the other is a new player-Amazon. Last year, Amazon also entered the Indian food delivery market, although its current business is still limited to parts of Bangalore. Founder Majety said that Swiggy’s long-term goal is to provide services to 500 million users in the next 10-15 years, and it will eventually rival Meituan.
Overall, the Indian food delivery market has huge room for growth. Analysts at Wall Street investment bank Bernstein wrote in a report earlier this year that the Indian food delivery market is expected to surge to US$12 billion by 2022. The market is largely monopolized by two platforms, Zomato and Swiggy, which account for more than 80% of the market share.
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