Swiggy's Homestyle Revival: Introducing Daily to Rival Zomato's Everyday

Swiggy reenters the homestyle food market with the relaunch of Daily, targeting areas initially. Amidst competition from Zomato's Everyday, Swiggy aims to expand its user base and drive market share growth.

Swiggy's Revival of Daily Service:

Swiggy has relaunched its homestyle food service, Daily, after a four-year hiatus, targeting select areas initially. The service was first introduced in 2019 but was discontinued during the COVID-19 lockdown due to decreased demand.

With many returning to office work, Swiggy aims to tap into the market dominated by Zomato's Everyday service.

Market Dynamics and Competition:

Zomato Everyday, piloted in Gurugram in 2023, has expanded to multiple cities, highlighting continued demand for affordable homestyle meals.

Both Swiggy and Zomato offer meals priced between Rs 89 and 150 under this category, aiming to cater to office-goers and individuals living in PGs and hostels.

Strategic Integration and Focus:

Unlike its previous standalone version, Swiggy Daily is now integrated into the main Swiggy app, showcasing the company's strategic evolution.

Swiggy sees Daily as a promising category and aims to target PG residents, hostel dwellers, and regular office-goers with the revamped service.

Market Expansion and User Acquisition:

Swiggy's move to revive Daily aligns with its goal to attract new users to the platform and increase market share. The company anticipates that customers initially drawn to Daily will continue transacting across other categories, boosting overall user engagement.

Financial Performance and IPO Plans:

Swiggy's upcoming IPO plans coincide with its efforts to consolidate divisions and streamline operations for increased efficiency.

The company aims to raise significant funds through its IPO, with plans to raise up to Rs 3,750 crore through a fresh issue and up to Rs 6,664 crore through an offer-for-sale component.

Financial Highlights and Comparisons:

Swiggy reported a loss of $207 million in the nine months to December 2023, with revenue reaching $1.02 billion during the same period. Despite revenue growth to Rs 8,625 crore in FY23, Swiggy's net loss widened to Rs 4,179 crore compared to Rs 3,629 crore in FY22.

In contrast, Zomato's revenue rose to Rs 7,761 crore in FY23, with a narrowed net loss of Rs 971 crore, showcasing the competitive landscape in the food delivery sector.

Future Outlook and Growth Strategies:

Swiggy's strategic initiatives, including the revival of Daily, indicate its commitment to expanding market presence and driving user engagement.

The company's focus on innovation, user acquisition, and financial performance aligns with its aspirations for a successful IPO and sustained growth in the competitive food delivery market.