Phani Kishan Addepalli, co-founder and Chief Growth Officer of Swiggy, emphasised the company’s unwavering commitment to putting consumers at the centre of every decision during a recent talk at TechSparks Bengaluru 2024. As the foodtech giant gears up for its public listing, this approach has been instrumental in navigating challenges and achieving success.
Reflecting on Swiggy’s journey, Addepalli recounted the struggles faced in 2015 when the company was scaling from 500 to 2,000 orders per day. During this period, Swiggy relied on a cumbersome telephonic system to keep customers informed about their orders. Delivery partners had to dial specific codes, resulting in frequent misdials and subsequent escalations.
Recognising the need for a drastic change, CEO Sriharsha Majety and the leadership team decided to pause operations temporarily. This bold move was aimed at launching a new delivery partner app designed to streamline communication and enhance efficiency. Addepalli noted, “We care about customers that we would rather not take business than do a bad job.”
For 48 hours, the entire team was hands-on, assisting delivery partners in downloading and learning to use the new app before resuming operations. This dedication to quality over quantity exemplifies Swiggy’s commitment to consumer satisfaction.
As Swiggy prepares for its initial public offering (IPO), the company plans to raise Rs 3,750 crore through a fresh issue, alongside an offer-for-sale of 18.52 crore shares. The IPO aims for a valuation of $10 billion, positioning Swiggy competitively against listed rival Zomato and other quick commerce players like Zepto.
In its recent annual report, Swiggy reported an operating revenue of Rs 11,247 crore for FY24, reflecting a 36% increase from Rs 8,264 crore in FY23. This impressive growth is attributed to strategic focuses on enhancing order values, boosting advertising revenues, and implementing cost-reduction measures aimed at achieving profitability.
Swiggy plans to utilise the proceeds from the IPO for several key initiatives. This includes investments in its material subsidiary, Scootsy, and repaying existing debts. Additionally, the company aims to expand its dark store network and invest in technology and brand-building efforts to further solidify its market position.
As Swiggy embarks on this next chapter, its commitment to prioritising consumer needs remains a cornerstone of its strategy. This approach not only aims to drive growth but also ensures that Swiggy continues to meet the evolving demands of its customers in a competitive landscape.