Title: “Swiggy Eyes Platform Fee Hike on Food Orders, Aims to Cut Losses Ahead of IPO”
Online food delivery giant Swiggy is reportedly considering doubling its platform fee on food orders from Rs 5 to Rs 10 in the coming month. The move is seen as an effort to reduce losses ahead of Swiggy’s planned Initial Public Offering (IPO) later this year, according to reports by Moneycontrol.
Swiggy has initiated indications of a potential platform fee increase on its app, starting with a select “small group” of users. This move follows a similar action in April last year when the company introduced a nominal fee of Rs 2 for specific customers, later extending it to all users. Currently, the platform fee is set at Rs 5.
The company clarified that the platform fee adjustment is part of ongoing experiments. A Swiggy spokesperson mentioned, “Swiggy has not changed its platform fee, and has no plans for a significant increase in the near term. We’re always running small experiments to better understand the consumer’s choices.”
Swiggy’s CEO, Sriharsha Majety, confirmed preparations for the company’s upcoming IPO, anticipating a substantial fundraising of $1 billion. The IPO is likely to involve seven investment banks, including Kotak Mahindra Capital, Citi, JPMorgan, Bofa Securities, and Jefferies, among others.
