------------
How online food delivery platform had
made a remarkable business growth in terms of customer acquisition and
valuation. Started in August 2014 Nandan Reddy (29) and Sriharsha
Majety (31,) both alumni of Birla Institute of Technology and Science
(BITS) Pilani came jointly for a common cause and Swiggy was founded in an
office space in Koramangala, Bangalore. One neighbourhood, six delivery executives
and 25 partner restaurants is what Swiggy started off with in the beginning.
Almost four years into the field, Swiggy now has a major presence in Delhi,
Mumbai, Pune, Bangalore, Hyderabad, Chennai and Kolkata. By 14
August, the duo made their dream into a reality by rolling out Swiggy, the
country’s first online food ordering platform. They roped in Rahul Janimini, an
IIT Kharagpur alumni, to do coding work for the platform
What is Swiggy stand for ?
Online, The platform of Food Delivery. "Swiggy is a food ordering and delivery company based out of Bangalore, India. ... A single window for ordering from a
wide range of restaurants,
Swiggy has its own exclusive
fleet of delivery personnel to pick up orders from restaurants and deliver it to
customers. The population of 7 Major cities is appx.100 Million. the consumer
now changing their food habits, and we can see more foody people in the
areas. So daily order from 10% of the population is peanut for Swiggy and related
online food delivery company.
Backed by Investors: Coatue Management,
Meituan-Dianping, SAIF Partners, Accel Partners, Norwest Venture Partners -
NVP, RB Investments, Bessemer Venture Partners, DST Global, Naspers, Harmony
Partners
Swiggy's latest funding round in June 2018 was reported to be $210 m. In total,
Swiggy has raised $465.5 m. Swiggy's latest valuation is reported to be $1.3 b.
--------------------------------------------------------Based on the news
that swiggy is targeting to achieve 1 million orders per day by 2020.
....... if we keep this data for projection and average basket size
we take Rs. 500/- then we can estimate that 360 Million order annually
would be there which will have network sales around 18000 Crores or
USD 2.77 Billion. This projection sale is network sales but how
much gross profit per order Swiggy is going to earn. Taking all things
and keeping average basket size Rs.500 per order, we assume that per
order Rs........ will be the revenue of Swiggy ( Service - Network revenue)
on per order delivery.
OTHER REVENUE MODEL: Swiggy should
start Packaging solution for their suppliers, Courier Service
in the city through their network. should open cookery Institute where
manpower will learn how to serve the customer in Swiggy's style. Spices & Ready
to cook Private Label branding for Suppliers.
Taking all
projections for the next 5 year, it is revealed that Swiggy will have
appx USD 5 Billion Valuation by end of 2022 ..... USD 5 billion
network sales shall generate Tentative Gross Profit of Rs.............. Crores.
However, in long run it is very much needed for Swiggy to control operational costs and it should be below industry
parameters. Other competitors will give tough challenge in near
months. Achieving network sales of USD 3 billion is not a big mountain
peak but for this annually need 20% to 30% growth in the number of orders and also
average basket size need to be increased.
The Indian Food market is huge
and changing food habits will definitely provide Swiggy a better platform
to perform, If we go by population and demography getting
yearly 1000 million order is not a big task, one who has this
caliber and passion can get it. for getting above data
reference has been taken from :
Based on the projection nobody can predict that after 5 or 7 years what will happen but business having a dependency on IT having more challenges. so here Swiggy has to make them self ready for the innovation in IT-based services and accordingly for making short term sustainability they have started other avenues so that they can sustain in the short run. No doubt funding support is there but since things are moving as desired so it can go as per plan.
We are confident that Swiggy will have USD 5 Bn valuation by end of March 2022.
Written by : Balwant Rana,
Simranriceinc@gmail.com
Year 2018
Reference | |||||||||||
https://www.thehindubusinessline.com/news/swiggy-ontargets-30-million-orders-a-month-drive/article24505688.ece , 25th June, 2018 | |||||||||||
Reference | |||||||||||
Yes, As per the projection, valuation mathematics more or less would remain same and within next 3 to 5 year swiggy will built valuation of USD 5 Billion. Please provide us more details about your working on Indian Retail.
ReplyDeleteGreat Mr Kirana Retail, you have provided best information on valuation and in very sweet and short way. I could now understand that how people talk about billions dollar business. Here is the key./////// Rajan
ReplyDeleteGreat Mr Kirana for updating on grocery....... I have learnt a lot from all these informations.
ReplyDeleteThanks for your valuable comments. Predictions are made keeping various factors in mind and this is a kind of intellectual property which can not be taught or learned. Predictions may go wrong but if you are working closely in your area, definitely things will be full of confidence and everyone can get maximum output out of it any time. you can reach to me at parjakalyanm@gmail.com
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