Swiggy , known primarily for its food and grocery delivery services, has broadened the reach of its travel and lifestyle concierge service 'Crew' to include Bengaluru, Mumbai, and the National Capital Region (NCR). This expansion follows an initial pilot phase, marking a significant step in the company's diversification strategy.

Service Offerings

Crew aims to simplify various aspects of modern living by offering assistance with:

• Restaurant reservations
• Travel itinerary planning
• Birthday party organization
• Gifting services
• Aadhaar updates
• Airport transfers

User Adoption and Utilization

According to Rohit Kapoor, Swiggy's CEO of Food Delivery, users are embracing Crew for both everyday tasks and premium experiences. This indicates a growing demand for comprehensive lifestyle management services in urban India.

Strategic Vision

Swiggy's co-founder, Phani Kishan Addepalli, described Crew as the company's "boldest step toward becoming an operating system for modern living." Early adopters of the service have reportedly benefited from:

• Exclusive hotel rates
• Assistance in planning getaways
• Organization of various services

Current Scale and Future Potential

While Crew is currently serving a few thousand users, its expansion to major metropolitan areas suggests Swiggy's confidence in the service's growth potential. This move represents a strategic diversification beyond Swiggy's core food and grocery delivery businesses, potentially opening new revenue streams and enhancing customer engagement.

Market Implications

The expansion of Crew into major Indian cities could signal a shift in the competitive landscape of lifestyle and concierge services in India. As Swiggy leverages its existing user base and technological infrastructure, it may be positioning itself to compete with specialized travel and lifestyle management apps.

Swiggy's move to expand Crew aligns with the broader trend of super-apps in the Indian market, where companies are increasingly offering a wide range of services under a single platform to increase user retention and lifetime value.

As the service grows, it will be interesting to observe how Swiggy balances its core delivery business with this new venture, and how it might impact the company's overall market position and financial performance in the coming quarters.

Swiggy , India's leading on-demand convenience platform, has reported growth across its key business segments in its latest quarterly results, while also facing scrutiny over a new fundraising initiative.

Board Approves Rs 10,000 Crore QIP

Swiggy's board has approved raising up to Rs 10,000 crore through a Qualified Institutional Placement (QIP), citing a competitive and dynamic environment. This move has drawn criticism from industry experts, including Devina Mehra, Founder & CMD of First Global.

Investor Criticism

Devina Mehra questioned the fundraising strategy of loss-making startups, highlighting that:

• Swiggy had raised Rs 4,500 crore in its IPO a year ago with an additional Rs 6,800 crore offer for sale.
• The company is making losses at the rate of Rs 1,100 crore per quarter.
• There appears to be no return on capital to dilute.

Mehra criticized the shift in public markets from rewarding profitability to facilitating exits for promoters and earlier investors. She also questioned which institutions would subscribe to the QIP and emphasized that traditional valuation methods remain the only reliable way to value companies.

Food Delivery Achieves Profitability

Swiggy's food delivery business, the company's primary revenue driver, has reached a significant milestone by turning profitable. The segment reported an annualized adjusted EBITDA of Rs 960.00 crore.

Strong User Growth and Order Value

The company witnessed growth in its user base and order values:

• Monthly Transacting Users (MTU) increased to 16.3 million, up from 14.7 million in the same quarter last year.
• Gross Order Value (GOV) reached Rs 8,542.00 crore, representing an 18.8% year-over-year growth.

Quick Commerce Expansion

Swiggy's quick commerce segment, Instamart, showed growth:

• GOV increased by 107.6% year-over-year to Rs 4,670.00 crore.
• The company expanded its dark store network to 1,102 stores across 128 cities.

However, the quick commerce segment remains in investment mode, with a negative 12.1% EBITDA margin.

Out-of-Home Consumption Segment Profitability

The out-of-home consumption segment, which includes Swiggy Dineout, maintained growth:

• 50% year-over-year GOV growth
• Profitable for three consecutive quarters

Platform Growth and Cross-Pollination

Swiggy's overall platform saw accelerating B2C GOV growth of 30%, driven by:

• Cross-pollination between services
• Increased user engagement across multiple offerings

Financial Highlights

Toastr App Controversy

Amid Swiggy's financial results and fundraising plans, a new app called Toastr, which claims to compare food prices between Swiggy and Zomato in real-time, has faced user complaints. Initially praised on social media, the app has come under scrutiny for several reasons:

• Users are required to provide login details for both Swiggy and Zomato.
• Inaccuracies in price comparisons have been reported, with one example showing a discrepancy between displayed and actual prices.
• Concerns have been raised about data scraping methods and whether comparisons include delivery charges and coupons.
• Some users noted that Zomato prices displayed on the app are not live and don't include current offers.

Market Analysis

Brokerage house Nuvama Institutional Equities has initiated coverage on Swiggy, stating that the company is recovering from earlier strategic missteps. According to their analysis, Swiggy's food delivery business has outpaced Zomato for four consecutive quarters, alongside improved profitability.

Future Outlook

With its food delivery business achieving profitability and the scaling of its quick commerce segment, Swiggy appears positioned for continued growth. The company's focus on expanding its user base and increasing engagement across multiple services may drive further growth.

As Swiggy continues to innovate and expand its offerings, investors will be watching closely to see how the company balances growth with profitability, particularly in its quick commerce segment. The controversy surrounding the Toastr app also highlights the competitive nature of the food delivery market and the increasing interest in price comparison tools among consumers.

The recent board approval for a significant QIP fundraise has sparked debate about the company's financial strategy and valuation methods in the startup ecosystem. As Swiggy moves forward with its growth plans, it will need to address these concerns and demonstrate sustainable profitability to maintain investor confidence.