SUMMARY
Last year in July, InsanelyGood’s standalone app was combined with Swiggy’s main app
In the same year, InsanelyGood scaled down its operations from six cities and now only operates in Bengaluru to curb cash burn
Just last week, the US-based asset management firm Baron Capital Group marked up Swiggy’s valuation to $12.16 Bn
IPO-bound food delivery major Swiggy has reportedly merged its premium grocery vertical InsanelyGood with its quick commerce unit Instamart. As per ET, citing the company’s notification, “We will have to pause InsanelyGood operations for some time. We will be available at an Instamart store near you super soon.”
In July last year, InsanelyGood’s standalone app was combined with Swiggy’s main app. It received a separate tile on the Swiggy app’s home page, alike services like Instamart, restaurant booking service Dineout, pick-and-drop service Genie, and aggregated selling platform Minis.
In the same year, InsanelyGood scaled down its operations from six cities and now only operates in Bengaluru to curb cash burn.
In March last year, Swiggy rebranded its subscription-based grocery delivery service SuprDaily as InsanelyGood.
Moreover, Swiggy bought SuprDaily in 2018 and integrated into a unit under the parent entity in 2021. This brought Swiggy in direct competition with Tata-owned BigBasket’s BB Daily, Amazon Fresh and Reliance Retail-owned Milkbasket.
Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli and Rahul Jaimini (left the company in 2020), Swiggy primarily started as a food delivery startup. Later, during the pandemic, it launched its quick commerce vertical – Swiggy Instamart. It also offers services like Swiggy Genie and Minis store.
Phani Kishan, a co-founder of SuprDaily and later also recognised as a co-founder at Swiggy, assumed leadership of Swiggy Instamart last year following the departure of senior leader Karthik Gurumurthy, who played a pivotal role in establishing Instamart.
This development comes at a time when quick commerce companies like Instamart, and Zepto are witnessing a period of expansion and diversification as they venture into new product categories such as apparel and electronics, posing a challenge to traditional e-commerce firms.
Also, Swiggy has been exploring similar avenues by introducing products like home and kitchen items, electronics, and toys through its Swiggy Mall segment for some time now.
In January, Swiggy brought down its workforce by 6% affecting around 400 roles, as part of cost-saving measures.
Prosus-backed Swiggy is likely to file its draft IPO papers in the coming months. Just last week, the US-based asset management firm Baron Capital Group also marked up the fair value of its stake in Swiggy.
Swiggy incurred a net loss of INR 4,179.3 Cr in FY23, an increase of 15% from INR 3,628.9 Cr in the previous financial year.
The company’s operating revenue jumped over 40% to INR 8,264.4 Cr during the year under review from INR 5,704.9 Cr in FY22 as it scaled up its quick commerce vertical during the year.
