Bengaluru, Nov 4 (UNI) As the quick delivery market heats up in India, Swiggy CEO Sriharsha Majety, is optimistic about the country’s unique potential.
While he acknowledges that “India is not China today,” he firmly believes that India is on the brink of a significant transformation in the food delivery sector.
In China, the largest food delivery app boasts a staggering 50 million active users, a benchmark that highlights just how much room for growth exists in India. Majety points out that as “India’s consumption story is also developing,” the market for food delivery services is not only set to expand but also to become increasingly profitable.
This growth is underscored by a projected compound annual growth rate (CAGR) of close to 20% in the quick delivery category, a figure that excites Majety and his team.
Majety was addressing a query from UNI regarding Swiggy’s expectations in the face of stiff competition and where the company envisions itself in the quick delivery market over the next few years.
Sharing his vision furget, Majety said, “Coupled with improvements in unit economics in the next few years and operating leverage thereafter, we think that business is a beautiful compounding business over the next one to two decades.” This optimism signals a strategic focus on enhancing profitability while scaling operations.
In addition to its ambitious growth plans, Swiggy is also preparing for its initial public offering (IPO), which consists of a fresh issue of ₹4,499 crore and an offer for sale of 17.5 crore shares. The issue is expected to be priced between ₹371 and ₹390 per share, with the company looking to raise ₹11,327.4 crore at the upper end of this price band.
Majety envisions a future where Swiggy could engage “100 million consumers using us like 15 times a month.” This ambitious target reflects Swiggy’s commitment to expanding its user base and tapping into the changing consumer habits in India.
Despite facing tough competition from players like Zepto, Blinkit, and Tata’s BigBasket, Majety remains confident. He noted, “A lot of the questions came out of curiosity about quick commerce because it’s not a set thing yet,” highlighting the dynamic and rapidly evolving nature of the industry.
While India may not yet match China’s food delivery dominance, the opportunities for growth are immense. With a focus on improving operational efficiency and scaling its user base, Swiggy is well-positioned to lead the charge in realising India’s promising future in the quick delivery market.
As the landscape continues to evolve, Swiggy’s vision may very well become a reality, unlocking the full potential of India’s burgeoning consumption economy.
