Joining the growing trend among Indian startups, Swiggy, the renowned food delivery enterprise, is expanding its services with the launch of a new credit card to heighten customer engagement and bolster retention. The credit card, a joint initiative with HDFC Bank, India’s largest private bank, exemplifies Swiggy’s multi-pronged approach to adding value for its users while diversifying its business model.
The Bengaluru-based startup, which boasts the support of high-profile backers like Prosus, SoftBank, Accel, and Invesco, is looking to make everyday transactions more rewarding for its customers with this new offering. The Swiggy credit card, made possible by Mastercard technology, is set to deliver a compelling suite of benefits. The standout perk is a 10% cashback on all Swiggy orders, adding a new layer of incentive for users to choose Swiggy for their food delivery needs.
But the advantages of the Swiggy credit card extend far beyond the food delivery app’s boundaries. The credit card will also offer a substantial 5% cashback on transactions made on over 1,000 partner platforms. These partners include a diverse range of businesses, from global online retail giants like Amazon and Flipkart to lifestyle brands such as Adidas, Zara, and Nike. Furthermore, users can also earn cashback on services like Uber and entertainment platform BookmyShow.
As an additional perk, the Swiggy credit card will include a three-month subscription to Swiggy One, a premium service that eliminates delivery charges for members. Users will also be able to earn 1% cashback on all other expenditures. According to the company, the card will also provide users with selected Mastercard benefits, further enhancing the card’s value proposition.
The introduction of the Swiggy credit card mirrors a broader trend among Indian startups, many of which are launching credit cards to diversify their revenue streams, leverage customer data more effectively, and incentivize spending. These cards, replete with custom benefits, serve to solidify customer loyalty and present an enticing entry point into India’s rapidly expanding middle-class market. Analysts suggest that such initiatives could accelerate growth amid a competitive business environment. Notably, Zomato, Swiggy’s publicly-traded primary competitor in India, has made similar moves in the past.
Rahul Bothra, Swiggy CFO, elucidated the company’s strategy in a statement, saying, “We recognize that modern-day consumers actively seek rewards, offers, and cashback programs that add value to their spending. Keeping this in mind, we have launched this all-encompassing card in partnership with HDFC Bank and Mastercard that makes everyday shopping moments across a range of categories more rewarding and convenient.” As such, Swiggy’s latest venture illustrates a keen understanding of its consumers’ wants, and a strategic response to the evolving market dynamics.
