Sahibjeet Singh Sawhney

Zepto took a piece of pie from Zomato & Swiggy! While working on this teardown, I realised how zepto cafe has managed to increase my average order value from zepto. Calling for a quick snack for random hunger pangs from a Swiggy or Zomato seems inconvenient now ⏳Long Wait (minimum 30 minutes) 🫰Expensive (minimum 250-300 for the order) Zepto solves this issue of a quick snack in 15 mins!! 🌯 🚀 From Problem to Solution: My Zepto Teardown Journey Last week, I started digging into Zepto as part of the exciting Teardown Challenge by Akhil Yash Tiwari in the Product Space cohort. 🛠 Problem Statement: 1️⃣ Boost the AOV to ₹600. 2️⃣ Enhance product discovery and engagement on the app to encourage more frequent and larger orders. 3️⃣ Improve purchase experience Over the past week, I did the following to tackle this: 📊 Analyzed Current Users: I focused on understanding how are people using zepto interns of order value, frequency and what problems they wanted addressed 📲 Leveraged Technology: My solution centered on implementing AI and IoT to manage storage conditions, and using data-driven insights for better personalization. Zepto already has a lot of offer, it must focus on leveraging the massive data that they have and make users feel like zepto truly understands them. 📚 What was my Learning? The balance between scale and quality is tricky, but with the right tech solutions, it's possible to enhance both. 👥 Special thanks to my fellow team member Rohit Sharma in this challenge! 🔍 Curious to see the full teardown? Check it out below 👇 🔗I'd love to hear your insights! What are your thoughts on predictive tech improving perishables? Has Zepto or any of the Quick Commerce platforms you use managed to increase your order value?

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🚀 Swiggy IPO is providing 30X type of return to many VCs. And media is going gaga over it. A 30X return in 9-10 years is 40-45% IRR which is very impressive. Now look at it another way ----If I set up a VC fund with an expectation of 25% IRR over a 10-year fund, then the final value needs to be 9-10X for the entire fund. And I will not invest more than 10% in one deal typically. Let’s look at numbers: 1️⃣ Total fund size - 100 rupees 2️⃣ Required final value @25% IRR - 930 rupees 3️⃣ Swiggy - 10% or 10 rupees 4️⃣ Swiggy exit value - 300 rupees 💰 I still need the balance 90% or 90 rupees to deliver 630 rupees. This is not easy at all. Knowing most of the investments in startups will fail, I still need 2 more Swiggy's in the portfolio to be an average performer. 📊 On top of that, there are several small-cap mutual funds that are giving 25% return over several years. VC is a tough business. 🎢 #startups #swiggy #VC

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#QuickCommerce: A Boon or Bubble? The rapid rise of quick commerce players like #Swiggy, #Zomato, and #Zepto has undeniably transformed how we shop, making instant gratification the new norm. The industry, valued at over $80 billion globally, is expected to grow by 25-30% annually, driven by urban millennials and #GenZ’s appetite for on-demand services. Yet, there’s a storm brewing on the horizon. #UdayKotak, an influential voice in the financial industry, recently issued a cautionary warning about the sustainability of the quick commerce model. Here are some key points that raise concerns: 1. Cash Burn and Profitability Challenges: Despite impressive growth rates, the majority of quick commerce firms are struggling with profitability. Data shows that companies like Swiggy and Zomato have been spending 4-5x more than their revenues just to acquire and retain customers. 2. Logistical and Operational Strain: While 10-minute deliveries sound appealing, they come with a cost. The logistics infrastructure required is both expensive and complex, often relying on heavily subsidized delivery models. This raises questions about how sustainable this race for speed truly is. 3. Investor Fatigue: Venture capital funding, which fueled much of the industry’s growth, is beginning to show signs of hesitation. With valuation corrections and demands for a clearer path to profitability, the pressure on these startups is mounting. 4. Consumer Behavior and Economic Pressures: While the convenience is unmatched, there’s a limit to how much consumers will pay for speed. Economic uncertainties and rising inflation may shift spending habits, making ultra-fast delivery less attractive when discretionary spending is squeezed. 5. Regulatory Concerns: Kotak highlighted a crucial point: the political and regulatory landscape could change drastically if these companies start impacting small, local businesses. With potential regulations on the horizon, the industry might face unexpected headwinds. Is the quick commerce model inherently flawed, or is it just facing temporary challenges in the journey to profitability? How can these companies pivot or adapt to ensure long-term sustainability without compromising on speed and convenience? Are consumers willing to pay a premium for faster deliveries in the current economic climate, or will we see a shift in priorities towards cost and value? Your thoughts? #indianstartups #cashburn #roadtoprofitability #ceosgurukul #firsttimeceos https://lnkd.in/dCp84sCd

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“Remember when 30 minutes or free was a revolution in pizza delivery? Or how Maggi became a household name with its ‘2-minute noodles’? These weren't just catchy promises; they shifted how people expected speed and service. Fast forward to today – Swiggy Instamart, Zepto, and Blinkit are delivering essentials in 10-15 minutes, and it's working! Why? Because human patience is shrinking, and convenience is king. But here's the big question: What happens if we apply this model to everything – from haircuts to repairs? Can quality and speed coexist, or will something suffer? Businesses are already racing to meet growing impatience, but do we risk sacrificing depth for the sake of minutes? What do you think – should all services follow this speed-first trend, or is there a breaking point?” #QuickCommerce #CustomerBehavior #ServiceEvolution #StartupTrends #ConvenienceCulture

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After diving into Zomato's annual report and Swiggy's DRHP, it’s clear that these companies have distinct operational styles. Let’s break down what sets them apart based on FY24 data 1. Swiggy spends more on employees & marketing but it's not resulting in a proportional increase in GOV Zomato has built a more capital efficient business. It spends 772 crs less on employees & marketing than Swiggy but gets ~12,500 crs more in GOV 2. Swiggy's take rate on food delivery is on par with Zomato but in quick commerce, its way less Both Zomato & Swiggy seems to have maxed out the restaurant commissions. But Instamart is leaving a lot of money on the table with a low take rate than Blinkit (~5% difference) 3. Swiggy spends more to deliver an order compared to Zomato Although Swiggy spends 564 crs less than Zomato on delivery costs, it's low GOV means that it is spending more to deliver an order. Plus its low take rate in quick commerce means that most of the money it gets is spent in delivery 4. Swiggy's tech costs are better in control than Zomato's Swiggy wins here as its tech costs are just ~2% of its overall costs whereas Zomato is almost double of this. But Zomato has higher monthly transacting users (18.4 mn users vs 12.7 mn) & higher restauarnt partners (2.7 lac vs 1.96 lac) which justifies the higher server & cloud infra costs Bottomline: While costs can be improved over time, Swiggy's ability to get more revenue (market share, QC take rate) & increase its TAM are the things to watch out for With Swiggy's focus on user experience & new revenue initiatives, they should catch up in the future. Plus this is a multi-decade game where balance shifts every few years Now coming to the IPO listing, 1. Swiggy's valuation at a ~50% discount seems cheap 2. Swiggy's path to profit, huge debt, 60% OFS are the concerns 3. Less market share, transacting users could be either a problem or an opportunity. Swiggy has more scope to increase these metrics PS - I admire both Zomato & Swiggy for building a new market from scratch. I am optimistic about the future of both Zomato & Swiggy. This is not stock advice or recommendation

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Swiggy's Q2FY25 Results Update 🚀 - Sales Growth: Up 30% YoY to ₹3,601 Cr - Comparison: Zomato outpaces with 68% YoY growth - Net Loss: Marginally reduced to ₹625.5 Cr (from ₹657 Cr last year) - 📉 Sequentially, losses widened slightly (₹611 Cr in Q1FY25) - What’s Next? Management aims for positive Adjusted EBITDA by Q3FY26 🎥 Reel was shot on 4th December 2024. 📊 Source: Company Results, Concall & Investor PPT 👉 Let us know your thoughts in the comments! 💬 Swiggy Initiated Coverage Report- https://lnkd.in/dmw6p6gi For more such insightful updates, follow #HDFCSKY, a discount broking App from #HDFCSecurities #MakeMoneyMatter #SwiggyResults #Q2FY25 #StockMarketUpdates #FinancialPerformance #HDFCSKY #HDFCSecurities #InvestSmart #MakeMoneyMatter #MarketInsights

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Picxele™ got an acquisition offer of 10Cr+ 😃 Back in 2021 September, when we had an amazing FY21 with Crores of Revenue and Thousands of Users coming in, that year was eventful. From getting Investment interest from angels and VC to facing some huge losses to getting an acquisition offer from a well-listed company subsidiary company. Didn't took the investment because I started being comfortable without reporting someone else and getting into the funding loop. Additionally started investing that year which also gave me the perspective of the other side and how other investors think. Faced a huge loss with a client with whom we had been working for 2 years, with no genuine reason and faced mental turmoil due to that, 3 to 4 months later decided to explore other things, which led towards working as a consultant in a couple of startups, besides running Picxele™. By the end of the year did get a good acquisition share swap offer from the well-listed subsidiary company, but didn't took the same as there was no cash component involved and eventually I felt like I was becoming an employee of the company. These all taught me a lot and I understood various aspects of running the business, working as a team member and investing in startups. But at the end of the day, i don't have any regrets, all of these decisions have never hurt any of the people I love and care for, be it family, team members and well-wishers as in the end that matters the most as a human being ☺️

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"You should try and make money from every transaction." 💥 Want to dominate India’s E-commerce scene? 🚀 - Product opportunities that can set you apart - Key metrics to track for success - Cracking quick commerce in today’s fast-paced world - Amazon vs D2C: Which should you focus on? Pulkit Chhabra, the mastermind behind Nuvr, an E-commerce accelerator managing ₹5000 crore+ FMCG brands, shares his no-nonsense advice in our latest chat. I caught up with Pulkit at his Bangalore office, and trust me, this mini-podcast is power packed with insights! 🎙🔥 #startups #ecommerce #podcast #founders #bengaluru #wolfpreneur *Image typo: FMGC = FMCG

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Zomato / Zomato India / Zomato Care / Swiggy / Zepto random idea: in order to improve the experience for your delivery partners, incentivize your customers to improve their interactions with them. For example, you can allow your delivery partners to rate your customers out of 5 stars, and your "star customers" can get discounts for maintaining a high rating. If they constantly misbehave with your delivery partners, then their rating will start lowering and they will visibly see their discounts going down. Similar ways of "gamifying" the delivery experience in favour of your delivery partners might send out a huge statement to them, building trust that you care about them just as much as your customers (not that you aren't doing that already, but this has been a common issue for debate in recent years). I think Uber did something similar in the US and maybe it's still on, so something to explore. #randomthoughts

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🚀 Swiggy's IPO DRHP is a gold mine of data 📊 Average Order Value (AOV): Swiggy Food Delivery: ₹428 Instamart: ₹460 Dineout: ₹3,129 📈 User Growth & Engagement: 112.73 million users have transacted on Swiggy's platform as of June 30, 2024. Monthly Transacting Users (MTUs) for Food Delivery and Quick Commerce continue to rise, hitting 15.99 million in Q1 FY25 Swiggy One membership (5.7 million members) shows an impressive 7.4x order frequency, nearly double the platform average of 4.5x. 💼 Operational Scale: Swiggy works with 223,671 monthly transacting restaurant partners and 457,249 monthly transacting delivery partners, reflecting its massive operational scale and reach. Active Dark Stores increased to 557, supporting the Quick Commerce business and ensuring rapid deliveries.

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₹160 Cr revenue run rate from just 15% of stores… and Zepto is just getting started! The crazy part isn’t just Zepto’s success. It’s the huge opportunity quick food delivery presents. We’ve all watched dark stores and micro-warehouses shake up retail. Now, imagine a whole wave of fast food stores delivering everything from chai and poha to coffee and samosas in minutes. This could change the game for how we get our food, fast. But here’s the real question: Will smaller businesses get in on the action, or will we see a few giants dominate the space? Quick food delivery isn’t just about speed—it’s about how we experience convenience. But can it scale without compromising quality? 💭 What do you think? How do you see this impacting local restaurants or food startups? Let’s chat below 👇 #QuickCommerce #FoodDelivery #RetailInnovation #StartupTrends #entrepreneurship #zepto #startup

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Bengaluru-based food delivery app Swish raised $2m a couple of days back to break the monotony in the existing food ordering space. Here’s what they’ve done: - Each order you place now boosts your rank on a daily leaderboard. - The top 10 customers by midnight take home ₹1,000 in cash. - Rankings reset every day for a new chance to climb to the top. In a city where food delivery apps often blur together, Swish is bringing a playful, competitive edge to the experience. Pair that with their quick 10-minute delivery promise, and it’s clear they’re betting big on engagement! Given that food ordering now is a habitual, indulgent activity, do you think that gamification with 10 min delivery gives the saturated space a fresh twist?

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Why I’m Betting on Zomato. In its early days, Amazon faced heavy losses but focused on one thing: the customer experience. Today, it’s a giant, with shares soaring. Zomato is on a similar journey. Even while reporting losses, they delivered over 1.2 billion orders last year, prioritizing real-time tracking and customer engagement. This strategy sets them apart, especially compared to companies like Snapdeal and Paytm, which are faltered by neglecting customer needs. Their market shares plummeted, while Zomato is steadily growing. Critics warn that Zomato's losses are unsustainable, but remember how Amazon faced the same doubts. Their long-term vision led to market dominance. I believe Zomato can replicate this success. As they continue to innovate and focus on customers, their future looks bright.

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10 mins delivery app | 10-year-old boy | 10 mins of amazement Background: I live in Kota, a tier 3 city. Here, Shark Tank is the biggest source of startup world exposure Recently, Blinkit started operations in Kota. I was showing Blinkit to Aarav - a 10-year-old boy in my society. Before I could explain, he said 3 sentences that blew my mind! Aarav - "aapko pata hai -" Sentence 1: "ye saare startups loss banate hai investor ke paise se" Sentence 2: "ye jyada log hire karte hai, taaki ye jyada salary dein and profit mein se tax bacha lein" Sentence 3: "lekin inka reality mein profit hota hai" However wrong his understanding was,  I was amazed, happy and hopeful for the future of India. Because, when I was 10 years old, my concerns were like - 'pencil gum gayi ab mummy maregi' - 'aaj bat par MRF ki painting karunga' Today's 10-year-old kids are much more aware of the world. The true power of social media! I experienced pure joy for 10 mins straight :)

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"Will Zepto/ Blinkit become a feature or standalone product? And why it feels like quick grocery delivery is working?" - A VC shares insights on 2 things that have helped quick commerce companies grow, for now 👇 In this episode of GrowthX® Inner Circle, we sat with Aviral Bhatnagar (co-founder of A Junior VC). He digs deep into why Quick commerce might be better positioning as feature of a larger product. The full video on YT is in the first comment ✨

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The Swiggy vs Zomato fight is getting real. Swiggy recently increased its platform fee to match Zomato. It went from INR 7 to INR 10 per order, and while this may look small, it is a 43% hike, part of the broader revenue optimization strategy. Swiggy introduced its platform fee in April 2023 at just INR 2 per order and that figure has now grown by 400%. Initially seen as an experiment, the platform fee has become a revenue source for both Swiggy and Zomato. Zomato’s platform fees generated INR 75 Cr in Q2 FY25, up 41.5% from the previous quarter, showing how powerful small fees can be at scale. The timing of this increase isn’t coincidental. Swiggy has been focusing on its revenue streams in preparation for an IPO, which was recently expanded to a fresh issue size of INR 5,000 Cr. With rising competition and operational costs, Swiggy needs to ensure steady cash flow and boost profitability, especially after narrowing losses by 44% to INR 2,350 Cr in FY24. Interestingly, this spike coincides with the festive season, when demand spikes. This move could help cover operational surges while keeping services steady through busy periods. For customers, this increase might feel like a slight pinch, but it’s also a reminder of the growing costs behind on-demand services. With food delivery giants competing in terms of delivery speed, sustainability and customer loyalty, these platform fees might become the new normal. Do you think this increase with impact your food delivery habits? #fooddelivery #pricehike

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🚨Early Access To Exclusive Swiggy Report🚨 Swiggy is going for IPO at Rs 95,000 crore valuation - 8.5 times its trailing FY24 revenue. Rival Zomato has a market cap of Rs 218,257 crore - 18 times its trailing FY24 revenue. Swiggy is giving a 50% valuation multiple discount. Why ❓ Swiggy won the first leg of the race for food and quick deliveries between 2015 and 2021, but now Zomato holds the top position in both segments. More importantly, Zomato has also been able to reach profitability and break-even across both these segments. This raises important questions about Swiggy’s future. If Swiggy is to outpace Zomato in the coming decade, incremental gains in market share or marginal growth will not be enough. The company will need to deliver new products that significantly expand its total addressable market (TAM). While a publicly listed Zomato chases aggressive targets, Swiggy continues to move carefully in every area, whether monetisation or cost-cutting. All of this goes back to the very different DNAs of the two companies, which are driven by their founders. In this extensively researched report, The Arc provides an exclusive profile of Swiggy’s reclusive founder, Sriharsha Majety, based on over a dozen interviews. We also explore how Swiggy’s top management team is structured, how its product strategy differs from Zomato’s, and what the future may hold. Report link in comments 👇 #swiggy #zomato #quickcommerce #fooddelivery #ipo #swiggyipo #zepto

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Swiggy’s $1.4 Billion IPO vs. Zomato’s $1 Billion Fundraise! While Swiggy is preparing for one of the largest IPOs this year, Zomato is also getting ready to stay competitive. The Gurgaon-based food delivery giant recently announced a $1 billion raise through a qualified institutional placement (QIP), to strengthen its balance sheet in rising competition. This is what is happening in the quick commerce space: —> Despite a market correction that led Swiggy to adjust its valuation, investor interest remains intense. Major global players like Norges Bank and Fidelity have placed bids worth over $15 billion, 25 times more than the $605 million allocated for institutional investors alone. —> While Zomato and Swiggy are the dominant players, this space also has new entrants like Zepto and BigBasket. To compete, Zomato’s CEO Deepinder Goyal emphasized that their latest fundraiser will help "level the playing field" with competitors who continue to attract fresh capital. —> This IPO and Zomato’s capital raise highlight the opportunity in India's $100+ billion e-commerce sector. Swiggy’s IPO shows its intent to expand tech capabilities and optimize logistics. Zomato’s move shows a strategy to maintain financial flexibility to explore avenues of growth. Both companies recognize that staying competitive in this space will require capital reserves. While they are competing, it will be interesting to see how they innovate and expand the future of instant delivery. So, are you team Zomato or Swiggy? #quickcommerce #IPO

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Blinkit, Swiggy Instamart, and Zepto dominate India's quick commerce market! India's Quick Commerce market is projected to generate $3.35 billion in revenue in 2024. Which platform do you use? #blinkit #swiggy #zepto #quickcommerce #india #news #business #finance #zomato #bigbasket

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