Swiggy remained optimistic of growth in quick commerce amid growing competition from deep pocket players and said it has grown amid intense competition over the past decade, an official said on Thursday.
In an interview to PTI, CEO Food of Swiggy, Rohit Kapoor, acknowledged the possibility of the entry of Jio into the hyperlocal delivery market as a competitor, but underscored that building a successful business in this sector requires more than just capital.
Speaking on the competitive dynamics, Kapoor said that while funding is important, it is not the sole determinant of long-term success, referencing examples of well-capitalised players in India who failed to establish a lasting presence.
“Just having a lot of capital has not resulted in great businesses in India,” the official said, adding that success hinges on several other elements,” he said.
“You need a strong ability to hire top technical talent, and that’s something traditional companies often struggle with. Beyond talent, a deep understanding of the Indian consumer – something we’ve developed over a decade of experience in kitchens across the country – is essential,” Kapoor said.
Reflecting on Swiggy’s experience in the evolving food delivery landscape, the company noted that agility and rapid decision-making are crucial to staying competitive.
“Our orientation towards speed allows us to launch a new category quickly, while others might take months to finalize their plans,” the official explained, highlighting the company’s proactive approach in an industry where consumer expectations are high and competition is intense.
The official highlighted the changing nature of the sector, noting that 10 years ago, the Indian food delivery market was crowded with players like Foodpanda, TinyOwl, and even global major Amazon. Many of these companies have since exited, unable to maintain traction, reflecting the challenges within the sector.
“Our focus remains on understanding consumer needs and rapidly adapting to trends, which we believe provides us an edge, irrespective of who enters the market,” Kapoor stated.
Quick Commerce remains a major growth potential with the industry growing at 60-80 per cent.
Swiggy has hit the Rs 11,327 crore IPO comprising fresh issue of shares worth Rs 4,499 crore, along with an offer for sale (OFS) of Rs 6,828 crore.
The shares will be available for subscription in the price range of Rs 371 to Rs 390 apiece.
The company plans to utilise proceeds from the fresh issue for investing in technology and cloud infrastructure; brand marketing and business promotion; debt payment; and funds will also be allocated for inorganic growth and general corporate purposes.
Swiggy, founded in 2014, posted a loss of Rs 611 crore in the quarter ended June 2024, narrowing from Rs 564 crore in the same period last year.
PTI report
