Retail

When Swiggy’s Sriharsha Majety thought he made the worst investment decision


Covid-19 came as a lesson to all and for some, it led them to deep introspection. One of them being online delivery giant Swiggy’s co-founder Sriharsha Majety.

Swiggy had been working on its expansion and setting up cloud kitchens during pre-Covid times. The company, Majety dubbed it, was feeling a little invincible as expansion was fast, with the company trying out new brands on their own and expanding infrastructure of their cloud kitchens.

“We had just completed a rollout of the 120th kitchen. These things take a fair amount of CapEx and then boom, bang, smack, we landed in the middle of COVID in February-March. And, that absolutely looked like the worst decision in investment history,” he said at ASCENT eConclave 2021.

This led to Swiggy scaling down many of those kitchens and almost three-fourth of their footprint, said Majety and it is now picking it back from there. However, Majety said the jolt was very helpful, along with multiple other smaller ones.

“One year later, I am going into deep reflection about how we arrived here and what can I do to make sure that I don’t repeat some of these mistakes. I find myself asking deeper questions every time while making a decision about what can go wrong and doing pre mortems a lot better. That way, I think it has been a very character-building year for me,” he said.

The food delivery firm has gradually seen recovery as it was recently reported that Swiggy’s delivery arm grew by 56% in the months of April to September, a 91% jump from pre-Covid levels.

The company’s investor Prosus, in a regulatory filing, said the former was doing 1.59 million orders per day, and its GMV (value of food and non-food orders) in the period of April-September. This is a 69% increase year on year with the GMV standing at $984 million.

(The one-stop destination for MSME, ET RISE provides news, views and analysis around GST, Exports, Funding, Policy and small business management.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.