Swiggy’s Business Model and Marketing Strategy!

swiggy food delivery app logo

What is Swiggy and how does it work?

Swiggy become the best online food ordering and delivering Company in India using the On-demand business model. Swiggy captured the market easing the life of people in this fast-paced world.  The company has raised over 1.5 billion USD to operate as an Online food aggregator. Swiggy Connects its users with wide range of food Outlets and restaurants. The company provides users an exclusive opportunity to order food according to their preference and convenience. 

Swiggy was founded in 2014 by three diligent entrepreneurs, Nandan Reddy, Sriharsha Majety and Rahul Jaimini. They realized the gap and Opportunity in food Delivering system. The CEO of Swiggy, Sriharsha Majety along with other cofounders has launched Swiggy under Bundl technologies private limited. The covid pandemic has really appraised the mental agility of the founders. Even though after the easing of covid restrictions Swiggy was able to get back on track easily with huge orders and whooping revenue. 

As on 26th May 2023 ,swiggy is valued at 5.5Billion USD or 455,169,753,500 (INR)The revenue of the company stands at 5705 Crore for the financial year ending march 2022 with a whooping 124% increase in revenue as compared to 2547 crores in financial year 2021. 

Business Model of Swiggy 

On demand business Model 

This type of business model provides immediate access to products or services as per the demand raised by the Consumers the On-demand business model has gained significant popularity   as it leverages the technology. In this business model the company uses mostly an application or a web platform to connect the customers with the business providers by enabling real time and efficient transactions.

Swiggy’s innovative approach reshaped the way people older food and revolutionized the Indian food delivery System. Swiggy works on on-demand business mode by gathering users providing a great UI friendly application and a web platform. Users can order food conveniently from any place and get it delivered at door step. 

The business model of Swiggy uses the on-demand business model with a web platform and a mobile application. This enables the users to connect with the food outlets and restaurants in real time when there is demand and orders from users. 

Revenue Model of Swiggy

Let’s understand how swiggy earns revenue and their major revenue streams 


The major source of revenue of the company is through commission. Swiggy charges commission from partnered restaurants and food Outlets. A Commission charge of an estimate of 15%-25% will be levied from partners for every order executed on Swiggy platform. As the order increases the revenue of the company also increases.  

 Delivery charges 

 Swiggy charges a delivery charge from the users taking in consideration of distance and the weather condition. The company provides free delivery charge for multiple orders to increase the number of orders. 


The Company earns advertising revenue by charging from restaurants and other food outlets for listing on top of the search and other banner promotions. Advertisements promotion helps the restaurants to grab more orders. Swiggy  charges a promotion fee for promoting and priority listing restaurants for food outlets. 

Swiggy Access kitchen  

It is an innovative initiative by swiggy which enables the restaurants to operate without having a physical restaurant and dine out option. This initiative has the potential to exponentially increase the revenue or swiggy in coming years. 

Premium Subscription 

Swiggy provides premium subscription offers like swiggy super, swiggy one enabling the users to access premium features. Swiggy also works on a subscription model business to increase their revenue. 


Swiggy launched instamart as an extension to increase the revenue of the company and to solve the grocery delivery gap in our markets. Instamart provides on demand grocery delivery services across the cities. Swiggy instamart works closely with the FPO (Farmer producer organizations) to provide high quality groceries to customers at door step. Which also enables to deliver groceries without adding preservatives or using life extending packages. 

Genius marketing strategy of Swiggy

The company has spent 1848.7 crore for advertisement and promotional expenses in the financial year 2022. The company has used excellent marketing strategies and techniques to conquer and pioneer the food delivery market. The marketing strategies used by swiggy helped the company to attain all-time highs and incredible growth. 

  • Swiggy’s social media marketing strategies attained huge engagement with interesting social media campaigns and contests.  
  • The campaigns and contests were accepted by the influencers and users, helping the brand to become familiar in a short time. 
  • The hashtag campaigns run by the company went viral and has created a positive impact in the business. 
  • The company has run various email marketing to increase the orders and engagement.  
  • Swiggy has also run advertisement marketing to increase engagement and orders. 

Check out this article to read about Jio cinema business model and marketing strategy.

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