Swiggy, a prominent Indian startup, has joined the ranks of companies providing credit card services to its customers. The food delivery giant aims to enhance engagement and loyalty by expanding its range of offerings.
The Bengaluru-headquartered startup is partnering with HDFC Bank, India’s leading private bank, to unveil its new credit card offering. Swiggy’s credit card will provide customers with attractive benefits, including a 10% cashback on Swiggy spending and 5% cash back on more than 1,000 partner platforms such as Amazon, Adidas, Zara, Flipkart, Nike, Uber, and BookMyShow.
Powered by Mastercard, the card will come with additional perks, including a three-month subscription to Swiggy One, a service that eliminates delivery charges, and 1% cashback on all other transactions. As a startup backed by notable investors like Prosus, SoftBank, Accel, and Invesco, Swiggy also plans to extend some Mastercard benefits to its credit cardholders.
Swiggy becomes part of a growing trend among Indian non-fintech startups launching credit cards in recent times. By introducing credit cards, startups gain the opportunity to diversify their revenue streams, leverage customer data effectively, and encourage increased spending.
These credit cards are designed with personalized benefits, fostering stronger customer loyalty and serving as a lucrative entry point into the rapidly expanding middle-class market in India. In a highly competitive landscape, this move is expected to fuel growth for Swiggy and other startups. Zomato, Swiggy’s main competitor and a publicly-listed company, has also ventured into similar offerings in the past.
According to a statement by Rahul Bothra, Swiggy’s CFO, the company acknowledges the evolving preferences of modern consumers who actively seek rewards, offers, and cashback programs that enhance their spending experiences. In collaboration with HDFC Bank and Mastercard, Swiggy has introduced an all-encompassing credit card that aims to make everyday shopping in various categories more rewarding and convenient for its customers.
