Swiggy, one of India’s largest food delivery companies, is testing the ecommerce waters with its new vertical Maxx. The company is piloting one-hour delivery of various products in select areas of Bengaluru, ranging from toys and electronics to home and kitchen essentials.
Maxx plans to add categories like beauty and grooming, gardening, furnishing and decor, and health and fitness to its offerings soon.
According to a statement from a Swiggy spokesperson, Maxx aims to become the one-stop-shop for a wide variety of home and family shopping needs, delivered in just one hour. The pilot is currently being run in limited areas of Bengaluru, with Swiggy offering free shipping for orders priced above INR 99, as well as a 30%-60% discount across products.
The move appears to be Swiggy’s attempt to grab a share of the rapidly growing ecommerce segment in India, which is expected to be a $400 billion opportunity by 2030. Swiggy has been introducing new categories, such as premium grocery delivery with the launch of Handpicked in Bengaluru, and Swiggy Minis, which delivers niche products across various categories.
Amid the ongoing funding winter and mounting losses, Swiggy, like many other Indian startups, has turned its focus towards profitability. The company’s net loss jumped 2.2 times to INR 3,628.9 crore in FY22 from INR 1,616.9 crore in FY21, while its total revenue grew 2.2 times to INR 6,119.8 crore in FY22 from INR 2,675.9 crore in FY21.
Despite these challenges, Swiggy’s move into the ecommerce space has the potential to be a game-changer, as the company’s experience in delivering food and other products quickly and efficiently can be leveraged to gain a competitive edge in the sector.