n a recent interview at the World Economic Forum in Davos, Swiggy’s Group CEO, Sriharsha Majety, expressed confidence in the potential of Swiggy Instamart to outpace its core food delivery business. Majety stated “Instamart’s contribution to overall revenue is increasing and it is the growth driver for the overall group,”.
Highlighting the significance of quick-commerce in India, Majety mentioned that Instamart’s growth is a key driver for the company, and its penetration might eventually outshine traditional food delivery. He noted that the demand for grocery and allied items delivery could exceed that of restaurant food, making Instamart a crucial player in the evolving market landscape.
The competition in the quick-commerce space is intense, with Zomato’s Blinkit being a direct rival to Swiggy Instamart. Zomato’s CEO, Deepinder Goyal, has also acknowledged the importance of quick-commerce, stating that Blinkit is expected to bring more value to shareholders than Zomato’s core business over the next decade.
Majety revealed that preparations for Swiggy’s mega initial public offering (IPO) are underway, with the company aiming to raise $1 billion later this year. The IPO is expected to be a significant milestone for Swiggy, showcasing its resilience and adaptability in a market that has seen a slowdown in the food delivery sector.
To strengthen its board, Swiggy has recently added independent directors, including prominent figures such as Delhivery founder and CEO Sahil Barua, TAFE chairman Mallika Srinivasan, and FMCG veteran Anand Kripalu. These additions bring diverse expertise to Swiggy’s leadership as it navigates the evolving dynamics of the food delivery industry.
In response to the challenges posed by the slowdown in food delivery, Swiggy has undertaken strategic experiments to support its restaurant partners. The company has introduced in-house large language models (LLMs) to aid restaurants in managing operations efficiently. Additionally, Swiggy is leveraging generative AI to enhance search results, emphasising the importance of innovation and adaptability in staying competitive.
As the quick-commerce sector continues to evolve in India, both Swiggy and Zomato are positioning themselves to capture the growing demand for instant delivery of essential items. The upcoming IPO will be a crucial event for Swiggy, signaling its ambitions and strategic vision in a rapidly changing market landscape.