Swiggy Expands its Network; Now Delivers in 8 More Cities of India

To strengthen its presence across the nation, Swiggy, a food delivery platform, has expanded its network to 8 new cities of the country. Partnering with more than 1,200 restaurants, the food delivery service now has operations in Dehradun, Mysore, Puducherry, Vijayawada, Guwahati, Nashik, Ludhiana, and Kanpur.

Incremental Swiggy

Founded in the year 2014, Swiggy is an online food delivery service that operates in more than 27 Indian cities and has around 40,000 restaurants on its roster for the same. According to Vivek Sunder, COO, Swiggy, since then, the company has been working round the clock to make ordering and delivering food more accessible, convenient, and reliable for consumers across India.

That is why, as per Sunder, charting development, they recently partnered with 1,200 new restaurants across the cities of Dehradun, Mysore, Puducherry, Vijayawada, Guwahati, Nashik, Ludhiana, and Kanpur, and expanded their services in these 8 new markets.

Raising Funds to Enter New Business Space

In additional news, Swiggy is looking to raise a substantial $700 million to enter into virgin business segments. As per Mint, the fresh round of investment could include Chinese investment holding company, Tencent Holdings Ltd. With the funds, Swiggy is planning to build some capabilities up from scratch, while in the others the company is looking to either find a suitable partner from the hyperlocal space or acquire an emerging start-up.

Besides the food delivery, Swiggy is looking to enter into the hyperlocal delivery space, where it will deliver daily necessities such as bread, milk, etc. at people’s doorsteps. Swiggy has already devised a twin strategy for achieving its plan.

Internally, the company will concentrate on building a new team that will deal exclusively with the new path the company is looking to chart with hyperlocal deliveries and other new products under offer. While a more organic path will be walked on to attain the overall objective.

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New Acquisitions:

The company has already acquired two startups, Scootsy and Suprdaily. The process of assimilating the services of these two into the company’s business plans have already begun. Industry analysts say that Swiggy is following a pattern set by China’s number one food delivery platform, Meituan Dianping. The Chinese food delivery service too diversified its services into making deliveries of different products. Incidentally, Meituan Dianping is an investor in Swiggy.

With Swiggy planning on entering the market space for delivering customer essentials, its biggest competition will come from the leader of the space, BigBasket.

If Swiggy manages to net a $700 million funding, its valuation will almost double from $1.3 billion to $2.5 million. The $1.3 billion valuation came when Swiggy raised the last tranche of funds at the beginning of the year. Swiggy had approached Japan’s SoftBank for $500 million but the talks were not fruitful.

Sriharsha Majety, CEO, Swiggy has stated earlier too, that Swiggy is in no need of funds, that the company is adequately funded. Swiggy is only pursuing funding options because they are looking for newer business opportunities. In case funding is available and the investor is ready to inject those in the company, Swiggy is not against achieving growth at a higher rate because of it.

In comparison with the rival food delivery platform Zomato, Swiggy has raised around $465 million, $90 million more than Zomato. If industry insiders are to be believed, both the food delivery service providers, Swiggy as well as Zomato, love burning up cash in order to drum up more business for their main business line of food delivery.

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