Swiggy, India’s biggest food-delivery startup, has started to take expansion seriously. It is opening up ports in city after city and is not going to stop. With huge amounts of money in its kitty, the Indian company has not yet decided to enter the international market but is looking to strengthen its base in India. It overtook Zomato and leads the food-delivery market by a mile when it comes to customer preference. Swiggy has managed to bulk up and has a lot of money to burn.
The Indian unicorn raised $1 billion in funding in 2018. It came as a huge surprise as Swiggy managed to catch all of its rivals off-guard. Zomato has since tried to raise that kind of money but has been held back by some reason or the other. That said, Swiggy is going to venture into new businesses which go hand in hand with its roots. The company is looking to exploit some huge markets and it has already started to do it.
Alibaba a few years ago mentioned that it will only invest in markets that have great returns and huge potential. At the top of that market-list was grocery market in India. Swiggy has identified that and is preparing to launch its grocery-delivery services in major cities in India. It will be interesting to see how the company goes about this. It has $1 billion in its kitty and the world to conquer. This is because the company is looking to exploit a gigantic market.
The researchers believe that of the entire retail market in India, grocery is made of 60%. The analysts believe that the current value of the market is somewhere between $400 billion to $600 billion which will rise above the figure of $700 billion by 2022. This is why Swiggy has turned its eyeballs to this market. There are a lot of possibilities and there is going to be a lot of competition as well. However, Swiggy has the confidence and of course, money to rise above them all.
The company will compete with the likes of Big Basket, Grofers, Dunzo, and many others. That said, the Big Basket has recently had a huge investment of about $150 million. Swiggy will have to make space for themselves. Currently, the company is going to launch its operations in 12 major cities and will have a lot of funds to burn. It has also partnered with 3,500 local retailers and is ready to roar in the hyperlocal delivery market.
The online grocery segment is not that huge as it is valued at $1.5 billion currently. It is believed by RedSeer Consulting that the market will reach up to $7 billion by 2022. The company’s new venture is supposed to be profitable in the future and just like any other business right now it will also take time to reach the breakeven point.