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Informist, Thursday, Jul. 30, 2026

 

--Swiggy: Seeing no change in competitive scenario currently 

--CONTEXT: Comments by Swiggy's management in post-earnings analyst call 

--Swiggy: To invest in improving our customer serviceability 

--Swiggy: Will focus on increasing user base, order frequency for growth 

--Swiggy: Need separate commission model for Toing to grow platform 

 

By Avishek Rakshit and Sagar Sen

 

KOLKATA/NEW DELHI – Swiggy Ltd. is focusing on increasing its user base and inducing customers to order more frequently on its platform as the company charts its growth in the face of increasing competition. 

 

As of June 30, Swiggy had 27.5 million average monthly transacting users, up over 27% on year and over 9% sequentially. The platform frequency, which reflects completed orders per user in a quarter, however, declined to 3.87 per user in the quarter from 4.13 orders per user a year ago and 4.01 orders per user in the March quarter. However, Swiggy registered its highest-ever user retention in the June quarter. 

 

"A lot of the growth is going to come from the directing user base increase as well as frequency increase. So, these are the two levers that we are going to double down on," a senior company official told sector analysts Thursday in the company's post-earnings call. 

 

While the company continues to focus on further strengthening its core Swiggy app, it is also bullish on its new app platform, Toing, which offers value and budget food deliveries. Swiggy believes that among all the levers - price, selection, and convenience - affordability will be the biggest lever to unlock the next 100 million users. 

 

Toing is currently housed within the company's sandbox ecosystem to test new consumer propositions and innovation bets. The company said the consumer response to Toing, which has expanded to 50 cities in the June quarter, has been positive. 

 

According to the company official, the green shoots in terms of growth of the Toing business have been very encouraging, with two out of three new Toing users being new or having been dormant on the Swiggy platform. This gives the company the necessary headroom to revive dormant customers and also increase the customer base. 

 

At the same time, a significant portion of cloud kitchens and restaurants on Toing have already reached more than half of the volumes generated on the Swiggy platform, which makes the company bullish on its future growth prospects. However, the company is working on a different commission model for Toing, as it feels that budget meal deliveries need a different monetary model compared to the mainstream food delivery model, where the value of orders is higher than on Toing.

 

"I think commissions do need to be different from the Swiggy platform to enable our restaurant partners to offer everyday low prices. So, it is a core part of the strategy," the company official said.

 

Swiggy launched the Toing app platform without any high incremental fixed costs by leveraging its existing technology and geographic reach. The initial investment in Toing is largely on new user acquisition, which is discretionary in nature and can be quickly scaled or cut back depending on the progress, the company official said. 

 

"A lot of this (investment) is around the marketing investment that we have made to acquire new users on the platform, because from an overall fixed cost perspective, we have been able to launch drawing with very minimal effort or minimal overhead addition outside of the marketing investment that we need to make to get new users on the platform," the company official said. 

 

Swiggy's plans to strengthen its customer base come at a time when the quick commerce industry is facing severe competition. While Eternal Ltd. and Swiggy lead the pack, others like Big Basket and Zepto are upping the grocery delivery game. EatSure is increasingly gaining momentum in the food delivery market and local players such as MagicPin are also gaining ground. Swiggy does not see any change, such as consolidation, in such a competitive market scenario. 

 

Talking about the Instamart quick commerce business, the company official said that both its food delivery and quick commerce business are accruing margins of around 3%. "We have told that we will be getting to 5% and that steady growth you will continue to see as well as the measured income. So, we expect, over the next two quarters, to be able to break even at the overall cash level," the company executive said.

 

Thursday, the company's shares closed 3.0% higher at INR 295.91 on the National Stock Exchange. The company announced its June-quarter results after market hours. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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