Beverage Giant Coca-Cola Is Looking At Investing In A Startup In India For The First Time – Eyeing A Stake In Swiggy

Did you know popular soft drink maker Coca-Cola and online food ordering platform Thrive are in the limelight? It is because Coca-Cola acquired a minor stake of 15% in Thrive. The company is exploring a vast investment opportunity in India by doing so. By acquiring shares, Coca-Cola expects to boost Thrive’s future growth exponentially. The deal between Coca-Cola and Thrive will surely impact the performance of Thrive’s competitors, Swiggy and Zomato. Coca-Cola’s investment in Thrive will drive consumer engagement for the beverage giant with both restaurants and consumers to a great extent. 

In this blog, we will walk you through Coca-Cola’s amalgamation with Thrive and how Swiggy stocks are affected by this deal. If you plan to invest in Swiggy stock, you need to stride with us until the end of this blog to know everything in detail. Let’s start from scratch. 

An Overview Of Thrive, Online Food Ordering Platform 

Founded by three entrepreneurs, Dhruv Dewan, Karan Chechani, and Krishi Fagwani, in 2020, Thrive allows people to order food across restaurant partners. The platform charges a one fourth of the commission from restaurants compared with 18%-25% charged by Swiggy. It’s clearly visible that Thrive has emerged as a top competitor of the food delivery  giants Swiggy and Zomato. The platform serves as a tool for restaurants to create their own direct-ordering platform in under 10 minutes, irrespective of their location in the country. This is possible because the company has developed an all-in-one SaaS solution that helps restaurants in creating their own ordering experiences. This allows them to save up to 30% of their revenue and own their customer data. 

In December 2021, the platform raised $2.5 million in a series A funding round led by Jubilant FoodWorks Limited, with a 35% stake in the company. It also raised an undisclosed amount in a pre-series A round led by Whiteboard Capital and Amisha Capital in November 2021. The partnership of Thrive with Coca-Cola will boost its performance while affecting the Swiggy share price to some extent; let’s see how. 

Coca-Cola Partnership With Thrive 

On Monday, the popular soft drink maker Coca-Cola acquired a minority stack in a food delivery startup platform Thrive. News portals have suggested that the company has acquired a 15% stake in the platform. The Coca-Cola acquisition of Thrive will mark its first investment in the startup in India. The investment will drive massive consumer engagement for Coca-Cola with restaurants and consumers. As Sanket Ray, Coca-Cola president, India and Southwest Asia, said in the recent earning calls, “the beverage maker has been emphasising associations and pairing with meals and foods as one of its primary tactics to enhance consumption occasions.” 

According to the statistics of the online food delivery market in India, the market is projected to grow rapidly at a rate of approximately 35%, reaching a gross merchandise value of around $18 billion and accounting for about 18% of the total food service industry by fiscal year 2025. 

How Does This Deal Impact Swiggy Share Price NSE?

Swiggy, the largest online food-ordering platform in India, established in 2014, has a presence in more than 500 cities in India. Within a year, the company raised $2 million in seed funding from Accel Partners and SAIF partners, and as of 2022, Swiggy has raised more than $1.6 billion in funding and is currently valued at $10.6 billion. The fund raised by Swiggy is much more than Thrive. However, the deal between Coca-Cola and Thrive might impact Swiggy share price. Since its inception, the company has performed really well, but its services were impacted by the Covid-19 pandemic, due to which they had to temporarily closed services in some cities in India. Let’s look at the company’s financials through the table below. 

Particulars (Rs. In Crore) 2020 2021 2022
Revenue From Operations  3468 2547 5705
EBITDA  -3831 -1299 -3651
PAT -3919 -1617 -3628
EPS  -1805.5 -99 -221

The company’s financial performance might look so appealing to investors. However, the company is also planning to release its IPO, giving investors an opportunity to earn a high ROI. As you can see in the table above, Swiggy’s revenue spiked 2.2x to Rs. 5707 crores during the fiscal year 2022-23, which is relatively high compared to previous years. Considering the Swiggy share price BSE, it was Rs. 360 in March 2023, which came down to Rs. 160 in April, and again raised to Rs. 360 in May of the same year. You can also check Swiggy share price today at Stockify. 

If you plan to diversify your investment portfolio and earn high ROI, Swiggy can be the company for you to invest in. To make your buying unlisted share process hassle-free, count on Stockify, India’s leading online broking platform, which is here to help you with trading. Connect with experts today.

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