Next 500 towns to be key growth drivers in the long run: Swiggy

Even as restaurants complain that aggregators are charging high commissions, growth expectation in the near term is expected to be around 30-40 per cent for food aggregators, said a report. In the case of Swiggy, revenue from adjacent services is expected to be 50 per cent over the next 3-4 years from 25 per cent currently, said an ICICI Securities report based on discussion with Swiggy CFO, Rahul Bothra.

The company also believes that though near-term growth will come from its presence in top metros, long-term growth will come from the next 500 towns and since the penetration is low, the company does not see the need for hyper-discounting.

“Of the addressable market, Swiggy is of the view that a mere third is currently penetrated. The company looks forward to driving further penetration with investments.