Unicorn Foodtech Startup Swiggy’s Journey from a Failed Startup to a Billion Dollar Company
Swiggy established as a startup in August 2014
After shutting down Bundl Technologies in 2014
Currently, Swiggy’s valuation is $3.3billion
One of India’s most successful online food ordering and delivery startup, Swiggy, it is India’s sprightliest growing start-up in the country. Swiggy was started by, BITS-Pilani alumni SriharshaMajety and IIT-Kharagpur alumnus Nandan Reddy and Rahul Jaimini in August 2014. Once working in Myntra, the ambitious entrepreneur Reddy gave India a complete solution food ordering and delivery and ruled the market.
Located in Bengaluru, Swiggy established as a startup in August 2014. After shutting down Bundl Technologies in 2014, Majesty and Reddy planned to focus on the hyperlocal delivery sector, as there were no other brands involved in it. But when Swiggy was launched, the online food delivery market wasn’t doing so well. The investors all around the world had little confidence in the food delivery market and any venture’s ability to build a robust business model was questionable.
“When already we had planned to shut Bundl, we were sure that we have to get into the hyperlocal delivery business and take our chance. We also got that ordering platform and sources were not doing good. Ordering food has always been a ruckus for customers. Since we decided to take a dive into it and set up a new market with Swiggy,” Majesty said.
In 2015, Swiggy raised $2 million (INR 12 crore) from Accel Partners and SAIF Partners at a period when the startup market was going through a devastating phase. The E-commerce firm started with 150 personnel and had serviced over 30,000 orders. The company soon expanded and started its 11 new operations in Bangalore, and launched in Gurugram and Delhi. In series B funding, the firm generated $16.5 million (INR 115 crore). By the end of the year, Swiggy was active in Mumbai, Delhi, Hyderabad, Pune, Kolkata, Chennai, and Bangalore.
In 2016, The online platform introduced Swiggy Express, an in-house platform providing chef-made meals in less than 20 minutes. Swiggy had also reached 1 million order mark per month and they were tied up with more than 9,000 restaurants and 3,000 personnel. The same year Mukesh Bansal was appointed to Advisory Board.
In 2017, Swiggy introduced the mid-night delivery system till 2 am in Delhi-NCR and Hyderabad. It was also a controversial year for Swiggy when four former employees accused the company of frauding them, customers and restaurants they are tied up with, however, Swiggy denied all the allegations. The company had also appointed Rahul Bothra as its first COO (Chief Financial Officer) and Vishal Bhatia as CEO (Chief Executive Officer).
In 2018, Swiggy partnered up with ICICI Bank and allowed it’s delivery partners to use UPI (Unified Payment Interface) payment solution for instant fund transfers. The food delivery giant, it has been on a spree since 2018. By joining Unicorn Club, Billion dollar funding, and new partnerships and products expansions. With its debut in hyperlocal service market of groceries and household goods, Swiggy stores. Now, they are seen putting their hands into the ready-to-cook market as well. Swiggy’s invade in the hyper-local delivery market has not only provided convenience to its users but it has also created new competition for other brands as well. Even after facing a firm competition from Zomato, Foodpanda, Uber Eats, JustEat; Swiggy introduced a new service ‘Swiggy Stores’ which will be accessible on the same app and will allow users to order things like groceries, medicines, vegetables, Kirana, meat, and other stuff.
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