Swiggy has expanded delivery services to Dehradun, Pondicherry, Mysore, Vijayawada, Nashik, Guwahati, Kanpur and Ludhiana, in partnership with 1,200 restaurants, reports the Economic Times. Meanwhile, Mint reports that the company may be in talks to raise $700 million from Tencent Holdings (and possibly Softbank), despite being “well capitalised”, according to the same report.
Swiggy has also expanded its Super program to Pune. Memberships are available for introductory prices of Rs 49 for 1 month and Rs 129 for 3 months.
Launched this July, Super lets users get unlimited free deliveries at any time, no surge fee and a dedicated customer care team, the latter of which was not mentioned for Pune membership. At that time, Swiggy claimed that the membership had been rolled out to 200,000 users in 7 cities out of its now 28 cities, and that it was planning to extend the program to other cities (without mentioning a timeline).
Competitor Zomato’s loyalty program Piggybank just crossed 1 million users recently. In May, UberEats said that it was growing 50% month-on-month, and its number of orders had doubled in February-April 2018, without giving numbers.
Swiggy is eyeing expansion into verticals with delivery as its base business: it acquired delivery company Scootsy, it was also looking at grocery delivery, it also acqui-hired 48East, a gourmet Asian food startup last year.
In June, Swiggy raised Series G funding of $210 million led by existing investor Naspers and new investor DST Global, with participation from existing shareholder Meituan-Dianping and new investor Coatue Management. It has, so far, raised $465 million. We estimate that the company does 14 million orders monthly.
Discounting and burn rates
On discounting, Sriharsha Majety, Swiggy’s co-founder told Mint that finding ways to discount wasn’t their priority, “For us, it is well under control and probably a few quarters of such behaviour is to be expected because of new players who are trying to win market share suddenly.” According to Majety, the market’s burn rates are high either because the company is paying ‘too many subsidies to the consumers or the delivery guys or restaurants,’ and that Swiggy was not doing that, leading to its sustainable growth.