Swiggy eyes 100 mn users, each ordering 15 times a month

Food delivery giant anticipates strong growth in next decade

- PEERZADA ABRAR

Swiggy expects 100 million consumers to use the platform 15 times a month in the future as it sees the food delivery business to be more profitable in the next decade, the company's co-founder and chief executive officer Sriharsha Majety said on Monday.

The Bengaluru-based firm is gearing up to launch its ₹11,327 crore initial public offering (IPO) on Wednesday.

The food delivery business is at a meaningful scale today and is expected to grow at a compound annual growth rate (CAGR) of about 20 per cent, Majety said.

"Coupled with the improvements in the unit economics and operating leverage thereafter, it is a beautiful compounding business over the next 1-2 decades. It would become very large based on the back of the user base expansion that would happen," he told reporters.

The country's consumption growth, GDP (gross domestic product) per capital and women participation in the workforce indicate the food delivery business would be larger and more profitable in the future, he added.

"We definitely think about the world, where there are 100 million users using us 15 times a month," said Majety.

He said the next phase is to scale up the services of the company and cater to a consumer base of 300-500 million expected to grow over the next one or two decades.