Swiggy , the popular food delivery and quick-commerce platform, has made a strategic move by introducing 'Noice', a private-label packaged food brand on its Instamart platform. This launch marks Swiggy's entry into the premium quick-commerce segment, intensifying competition with rivals like Zomato, Blinkit, and Zepto.

Nationwide Launch and Product Range

Noice has been rolled out across six major Indian cities: Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, and Chennai. The brand boasts an impressive lineup of over 200 small-batch snacks and beverages, spanning 13 diverse categories. These include:

• Artisanal breads
• Biscuits
• Sweets
• Juices
• Paneer
• Traditional Indian snacks

Local Partnerships and Manufacturing

In a move that supports local businesses, Swiggy has partnered with more than 40 local kitchens and manufacturers to produce the Noice product range. This collaboration ensures a blend of quality and authenticity in the offerings.

Marketing and Distribution

The marketing responsibilities for Noice have been entrusted to Scootsy Logistics, a subsidiary of Swiggy. This arrangement leverages Swiggy's existing logistics network and expertise in the quick-commerce space.

Strategic Shift for Swiggy

The launch of Noice represents a significant strategic shift for Swiggy. Earlier this year, in May, the company exited its private-label food business by entering into a licensing agreement with Kouzina for its restaurant brands. Industry observers interpret this move as Swiggy's renewed focus on its core strengths:

1. Food delivery services
2. Quick-commerce operations
3. Building differentiated consumer brands

Competitive Landscape

By introducing Noice, Swiggy aims to carve out a niche in the premium quick-commerce segment. This move is seen as a direct response to the growing competition from other major players in the space, including Zomato, Blinkit, and Zepto.

The launch of Noice demonstrates Swiggy's adaptability and its commitment to exploring new avenues for growth in the ever-evolving food delivery and quick-commerce market. As the competition in this sector continues to intensify, it will be interesting to see how Noice performs and whether it gives Swiggy an edge in the premium segment of the market.

Swiggy , the popular food delivery and quick commerce platform, saw its shares jump 5.5% to reach an intraday high of Rs 443.70 on the Bombay Stock Exchange (BSE). The surge comes on the heels of positive analyst projections and investor optimism about the company's future prospects.

Analyst Coverage and Projections

DAM Capital has initiated coverage on Swiggy with a target price of Rs 515, highlighting the company's potential for robust growth and profitability. The brokerage firm projects a 28% revenue Compound Annual Growth Rate (CAGR) for Swiggy over the fiscal years 2025-2028. Moreover, DAM Capital anticipates that Swiggy will achieve adjusted EBITDA profitability by FY28, marking a significant milestone in the company's financial journey.

Food Delivery Segment Breakthrough

A key highlight in Swiggy's performance is the reported EBITDA breakeven of its food delivery arm in FY25. This achievement comes after years of operating losses, signaling a turning point in the segment's financial health. The food delivery market in India remains competitive, with Swiggy holding a 43% market share compared to its rival's 57%. However, Swiggy has been steadily recovering market share since the fourth quarter of FY24, indicating positive momentum in its core business.

Quick Commerce Expansion

Swiggy's quick commerce business, Instamart, is set for significant expansion. The company plans to increase its network of dark stores from 697 in Q3FY25 to over 1,000 by FY26. This growth strategy in the quick commerce segment demonstrates Swiggy's commitment to capturing a larger share of the online retail market.

Inclusion in MSCI Global Standard Index

Swiggy is slated for inclusion in the MSCI Global Standard Index, scheduled to take effect on August 26, 2025. This inclusion could potentially attract substantial passive fund inflows, boosting the stock's liquidity and visibility among global investors.

Market Response

The positive analyst outlook and Swiggy's strategic initiatives have clearly resonated with investors, as evidenced by the 5.5% surge in share price. The stock's performance reflects growing confidence in Swiggy's business model and its ability to navigate the competitive landscape of food delivery and quick commerce in India.

As Swiggy continues to evolve and strengthen its market position, investors and analysts will be closely watching its progress towards the projected growth and profitability targets. The company's ability to maintain its market share recovery in food delivery while successfully scaling its quick commerce operations will be crucial factors in its future performance.