IPO-Bound Swiggy Pilots Concierge Subscription For Premium Customers

IPO-bound foodtech major Swiggy has reportedly started piloting a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public. 

As per The Arc, the offering, Rare Club, is aimed at consumers prepared to pay a yearly membership fee, starting from INR 50,000.

Inc42 has reached out to Swiggy for comments on the development. The story will be updated based on the response.

“It’s an invite-only feature right now. The whole idea is to attract the top 0.1% of young consumers – the growing class of professionals and accomplished individuals who are coming into wealth and seeking convenience and exclusive access,” the report said, citing a top executive on condition of anonymity.

The report further said that the consumers subscribing to Rare Club’s membership programme would be benefitting from a unique range of experiences across food and beverages, concierge services, events and networking opportunities, besides access to exclusive deals that may not be available for consumers on large.

Swiggy is looking to make Rare Club subscriptions available for wider consumers in the market by the end of October, the report quoted another source as saying. However, the company will not run the operations directly, but will forge partnerships with event management firms and professional concierge agencies to serve its premium members.

This development comes at a time when the company is set to go public, and filed its first updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for an INR 3,750 Cr ($450 Mn) initial public offering. 

Additionally, the company also received approval from its shareholders to increase the size of the fresh issue in its IPO to INR 5,000 Cr from INR 3,750 Cr earlier, a day ago.

Meanwhile, its market rival Zomato has marked its footprint in the entertainment segment, in late August, through the recent acquisition of Paytm’s events and movies ticketing subsidiaries for INR 2,048 Cr in an all-cash deal.

The Prosus-backed startup managed to narrow its loss by 44% to INR 2,350 Cr, in the financial year ended March 31, 2024, as against a loss of INR 4,179.3 Cr in FY23. 

On the other hand, Swiggy’s operating revenue surged 36% to INR 11,247.3 Cr in FY24 from INR 8,264.5 Cr, from a year ago, backed by the growth of its quick commerce business – Swiggy Instamart.