Swiggy is the largest food-tech unicorn in the country. It is no denying that it is also the most successful food-tech company in India. Swiggy and Zomato battle it out on a day to day basis but they have a dedicated customer base. The company finishes almost 29 million deliveries every month and the number is staggering. The fact that it is the most trusted brand amongst the food-tech companies tells you enough about how good the operations are.
Swiggy was started roughly four and a half years ago. It started with just five delivery boys and now has millions of delivery fleets at its disposal. The company has come a long way and is the newest addition to the unicorn club. The food-tech company raised a stunning $1 billion in December which came as a surprise for its rivals. The funding was led by Naspers, a South African media giant with Tencent, a Chinese giant. This meant that Swiggy had run past its rivals Zomato in terms of valuation of the company.
Swiggy is only four and a half years old while Zomato has been present for over a decade now. That said, the former now has a $1 billion war chest at its expense and Zomato have struggled to raise that kind of money. Swiggy is making the most of that money now as it has decided to acquire a startup which also four years old, which goes by the name Kint.io. Kint.io is an artificial intelligence startup which will enable deep learning methods.
Pavithra Solai Jawahar and Jagannathan Veeraraghavan, the founders of Kint.io will join Swiggy to help them with their application. Kint.io mostly specializes in object recognition which will help Swiggy in building a better customer recognition. The object recognition could help customers find restaurants using images and have a better understanding of the restaurants.
Swiggy has acquired many startups before this. In 2017, the company acquired Scootsy, an on-demand delivery startup for around $7 million. It had also acquired SuperDaily which was a milk delivery startup. It used SuperDaily to make micro-deliveries of small-time products such as dairy and bakery products. To maximize its supply capabilities, in December of 2017, the company acquired 48East as well. So this is not the first acquisition by Swiggy but this is a first when it comes to technology acquisition.
According to Neel Shah, an exec at Counterpoint, Swiggy and Zomato have their customer base which is quite strong at the moment. However, it is not about creating a customer base anymore it is about holding onto the customer base they have right now. This is going to be a huge task as it is not as easy as it sounds. There are companies which are on their tales if they slip up. That is the reason the companies are hiring AI startups which will help them in learning about customer behavior and also help the companies personalize their applications.