The 12 Profit Channels Fueling Swiggy’s ₹11,300 Crore IPO Launch

Swiggy, the online food delivery giant, is set to launch an IPO estimated at ₹11,300 crore. With such a significant move, it’s natural to wonder about the company’s business model and revenue streams. Here’s a breakdown of how Swiggy earns money through various strategies.

1. Delivery Charges
   Swiggy charges customers a delivery fee, especially for small orders. For larger orders, the company may waive this fee, but delivery charges remain a primary income source.
2. Advertising Revenue
   Advertisements on the Swiggy app generate additional revenue, with companies paying Swiggy to increase visibility within the app.
3. Restaurant Listing Fee
   Restaurants listed on Swiggy pay a one-time listing fee of around ₹1,000, providing a steady revenue stream for Swiggy.
4. Commission from Restaurants
   Swiggy takes a commission of 15-30% from restaurants based on their sales through the app. This is one of Swiggy’s largest income streams.
5. Platform Fee
   Swiggy charges a platform fee per order, usually around ₹7, though it may increase to ₹10 during festive seasons.
6. Instamart Quick Commerce
   Swiggy’s Instamart service generates income through handling, platform, and delivery fees, similar to Zomato’s BlinkIt service.
7. Dineout App
   Swiggy acquired the Dineout app in 2022 for approximately $120 million. The app lists restaurants, allows table bookings, and offers discounts, earning Swiggy through listing and booking fees.
8. Swiggy One Membership
   Swiggy’s membership plan, Swiggy One, offers discounts on delivery fees. Revenue is generated through membership sales.
9. Credit Card Partnerships
   Swiggy partners with banks to offer special credit cards, earning a commission on transactions made using these cards.
10. Swiggy Genie
    This service provides delivery for various items, from gifts to medicines, generating additional revenue for Swiggy.
11. Campaign Fees
    Swiggy runs special campaigns that require restaurants to pay extra fees for participation, contributing to the company’s income.
12. Enhanced Restaurant Visibility
    Restaurants can pay a premium to increase their visibility beyond the typical 4-7 kilometer range, which adds to Swiggy’s revenue.

Each of these income streams contributes to Swiggy’s growth, setting the foundation for its upcoming IPO.