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Swiggy Business Model: Fast and Convenient Food Delivery

Unlocking The Secrets of Swiggy business model

We all needed someone to keep our favourite food in front of us while watching the TV.

And these three Swiggy owners– Sriharsha Majety, Nandan Reddy, and Rahul Jaimini did the same for us. Yes, after the launch of Swiggy, in 2014, this app has become a game changer in food delivery.

Now millions of people in India can satisfy their food cravings or prepare for dinner in no time by ordering food, sweets, desserts, and whatnot from Swiggy.

All world way with this app just because of its customer-centric approach and a unique idea that was generated from the needs of almost all Indians.

There were hurdles, but the business model of Swiggy, tie-ups with small and big restaurants, and on-time delivery set them apart from competitors like Zomato. 

So, if you are thinking of starting up a same-kind business or want to know how Swiggy’s business model is earning profits, who made investments, the chances of losses, or anything else, you have come to the right page.

This blog will teach everything about this successful startup, from competitors to technology, ideas to hurdles. 

But, before we begin, we would like our readers to be informed that creating a business like Swiggy or other similar unicorns requires expertly curated, tried and tested business strategies that help brands tackle challenging situations and record profitable growth. 

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For all planning to develop a business idea like Swiggy, Rahul Malodia- the expert business coach with 5+ years of experience, will help you with the details.

Rahul Malodia has been shaping business models for years and has helped multiple small and medium enterprises with scalable strategies, expanding their reach in the national and international markets with his “Vyapaari to CEO Program”. 

To find out how Swiggy has scaled and tackled the challenges, let’s explore the details of this food delivery app to learn more! 

Everything About Swiggy Business Model

In this blog, we will learn everything about Swiggy – A leading food delivery service in India, which has reached on top of the charts with its innovative approach and strategic expansion across major Indian cities.

We’ll also learn how people like Rahul Malodia can help businesses become a brand with his expertise and approach. 

What is Swiggy? 

Swiggy business model

Swiggy is an online app that delivers food from restaurants to customers. Swiggy has tied up with more than 1,00,000 restaurants all over India, from pizzas to biryani restaurants to dessert shops. Besides, it operates in over 500 cities and has headquarters in Bangalore, India. 

It has collected all the data like menu, prices, and food images, which you can browse and order from your home, Office, farmhouse, or any location. It’s like your favourite food, coming from your favourite restaurant at your location. 

The main aim of Swiggy was to connect customers with restaurants, cafes, coffee shops, and other small takeaway places.

The app features options that are continuously attracting customers to order from Swiggy in the battle of Swiggy V/s Zomato. Some are order tracking, live updates, customer support, cash on delivery, unbeatable deals, and whatnot. 

Because of this, Swiggy has received over $3 billion in funding from investors like Tiger Global, SoftBank, etc.; these investors have invested in many other successful companies which have become a brand in India. 

The Idea Behind Swiggy Business Model

The idea behind Swiggy’s business model was to provide a convenient and efficient platform for customers who want to order food from their favourite restaurants while sitting at home or when they need to eat something without going out in traffic. 

With this idea, Swiggy owners Sriharsha Majety, Nandan Reddy, and Rahul Jaimini started Swiggy in 2014, connecting customers with restaurants and cafes faster and hassle-free.

But what makes Swiggy famous in India is the chain of delivery partners, also known as “Swiggy Delivery Partner“.

They are responsible for picking up your order once it’s ready and delivering it to your location on time. With this, Swiggy even allows you to order for your friends and family living in a different city. 

This business model of Swiggy allows a seamless and efficient delivery experience, which ensures that customers receive their favourite food fresh, on time, at their location. 

Read Also: The Rise of Virtual Dining: Unveiling the Cloud Kitchen Business Model

Who are Swiggy’s Customers?

Who are swiggy customer

1. College and University Students

Course with the changing lifestyle, the students need their favourite food while studying, at night, stays, socializing, house parties, etc., 

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2. Families

Who is hosting a dinner or not, in the mood to go out and eat, are tired and busy, or for any special occasion? 

3. Office-Goers

Swiggy has a huge percentage of people ordering food at the timer for office hours. Some might be unable to prepare the food or crave good food. 

4. People Seeking a Nutritious Meal

Swiggy has also tied up with various healthy food joints. For those people, they deliver wraps, smoothies, salads, fried-free food, etc., 

5. Late Night Cravers

Swiggy is the best option for people with late-night cravings for desserts, pizzas, or anything else. 

6. Bloggers and Travellers

Swiggy is the best option for people who love exploring different cuisines and restaurants and also for people who are travelling from one city to another. 

7. People With Specific Requirements

Many people are allergic to certain food, and their body requires vegetarian, vegan, or gluten-free.

Swiggy’s Value Proposition

Swiggys Value Proposition

1. Tie-Up With Many Restaurants 

Swiggy has white options of restaurants and cuisines to choose from. This ensures customers can get food on their budget and taste. 

2. Multiple Payment Options

From cash on delivery to UPI, credit/debit card to wallet, Swiggy gives multiple options to its user for making payments. 

3. Fast and On-Time Delivery

Swiggy gives live updates of your order, and every delivery is made before or on time unless there is an actual reason for getting late. 

4. Live Order Tracking

Customers can track their delivery from when it gets picked up from the restaurant to your doorstep. This provides transparency and satisfaction to Swiggy in the run of Swiggy v/s Zomato. 

5. User-Friendly App

It is very easy to use Swiggy, so this makes the app user-friendly, and anyone can browse from the options, order food, and pay online. 

6. 24*7 Delivery

Swiggy delivers around the clock, meaning their customers can order food at any time.  

7. Customer Support 

Swiggy has an easy and prompt customer support service, and the team is keen on solving all matters urgently. It gives a positive image and builds loyal customers. 

8. Discount and Cashback 

Swiggy offers many discounts depending on the payment method. This makes ordering food affordability and interesting from the app. 

Read Also: Blinkit Business Model- The Secret to Instant Delivery E-Com Success!

How Does Swiggy Operate?

  • Swiggy gives its customers a list of options from which they can choose their desired food and add it to the cart. 
  • Customers will be given an easy way of customization and how they want their delivery to be made, like with cutlery or without, adding extra ketchup, etc. 
  • Now they ask for the address and provide multiple payment options like credit/debit card, UPI, and Paytm wallet, through which the amount has to be paid. The app also gives a COD option.
  • Once the order is placed, a Swiggy delivery partner is partnered near your restaurant. 
  • The restaurant will call the executive to collect the order, and then the customer can track their live location. 
  • An optimized route which is fastest, with less traffic, is shown on the mobile phones of executives, to make your food reach on time. 
  • The food is delivered with an attached bill from the restaurant. COD payments are made at that time. 
  • Customers can rate the delivery agent, tip them, and even rate the food delivered. It enables people to write positive and negative reviews, on which action is instantly taken. 

Swiggy Market Valuation And Funding 

Swiggy, the Indian online food delivery startup, has seen remarkable growth since its inception in 2014.

It has quickly become one of the most valuable startups in India, with a market valuation of over $6.5 billion as of March 2023.

Here’s a closer look at Swiggy’s revenue and funding:

1. Funding Rounds

Swiggy has raised $3.6 billion in funding across 16 rounds. Its latest funding round was from an undisclosed August 19, 2022 round. 

2. Investors

Swiggy’s latest investors are AvoInvest and Axis Growth Avenues AIF – I. Other prominent names include ARK Impact, Kotak Mutual Fund, Alpha Wave Global, and Ghisallo Partners. 

3. Valuation

Swiggy’s valuation has been on an upward-inward trajectory since its inception. In its latest funding round, swiggy’s net worth was cut down to $6.38 billion, by Invesco and Baron Capital, because of a loss in revenue. 

4. Revenue Model

The main revenue earned by Swiggy is through commissions from restaurants on order value and delivery charges.

Other earnings include advertising, in-app purchase, and other services. It has also acquired apps like Dineout and others, contributing to its overall revenue. 

5. Growth Potential

Swiggy has seen significant growth since its starting, but its valuation has been low. But with advanced features and a focus on new markets like Swiggy Genie, where groceries are delivered to your doorstep, it has a high chance of coming back at a good valuation again. 

Swiggy Revenue Model

Revenue Model of swiggy

1. Commissions

Swiggy charges 15-25% commission from the restaurant on the total order value, including GST charged over the menu price.

2. Advertisements

Swiggy charges a fixed amount from the restaurants to display their ad on the app, which can lure customers to order from the same restaurant.

They also run a targeted advertisement, which depends on your food preference and order history. 

3. Delivery And Convenience Fees

Swiggy also charges some delivery fees between Rs 20 to around 100, depending on your location and convenience fee for credit card and UPI payments. 

4. Swiggy Genie And Swiggy Daily

Swiggy is also earning revenue by delivering medicines, groceries, and everything to your doorstep with Swiggy Genie. And through swiggy instamart, which provides lunch daily through kitchen partners. 


In conclusion, Swiggy has connected restaurants and cafes to customers towards food delivery apps. It happened because all customers’ needs were fulfilled, including quality food and reliable deliveries.

Swiggy is an app developed after seeing customers who want to eat at home, late at night, avoid traffic, or host parties. 

If you want to maximize your profits and earn revenue, you should evaluate customers’ requirements and adapt your strategies accordingly, like the same done by Swiggy. 

You can contact industry experts and business coaches like Rahul Malodia for more guidance. He is the best business coach with more than 5 years of experience, to make you learn about business tactics and handling credits.

Take his help and develop a strong strategy and team, which will ultimately lead to the success of your business in the same line. 

Frequently Asked Questions 

A swiggy delivery boy can earn between 20000 to 25000 a month, depending on the number of deliveries and distance covered. Customers have started tipping them personally because of the good service and fast delivery. 

Swiggy’s Instamart business model was to give service, allowing customers to order groceries, medicines, and other daily essential items at their doorstep. 

Swiggy takes 15 to 25% commission from restaurants on every order. The commission is calculated after charging GST on the total order. 

It is a local delivery service started by Swiggy, where customers can order groceries, documents, medicines, ice creams, and other essentials within a limited area.

You can simply contact Swiggy’s customer support and ask to delete a Swiggy account.

Customers can contact the support team and get an update in that case. Only some external factors like traffic, higher order volume, and weather conditions can cause delays.

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