Swiggy Launches Co-branded Credit Card With HDFC Bank

Foodtech giant Swiggy has launched a co-branded credit card in partnership with HDFC Bank to lure customers and get an upper hand over its rival Zomato.

The credit card, which will be hosted on Mastercard’s payment network, would be rolled out in a phased manner over the next 7-10 days, the companies said in a joint statement. Following this roll out, eligible customers can apply for the card.

With this move, Swiggy has joined the likes of Flipkart, Myntra and Paytm in terms of providing co-branded credit cards. 

Swiggy’s competitor Zomato also used to offer co–branded credit cards with RBL Bank. However, Zomato and RBL Bank decided to discontinue their partnership earlier this year. 

Swiggy’s co-branded credit card will offer users 10% cashback across services such as food delivery, grocery delivery, and dining out. In addition, users will be able to avail 5% cashback on other ecommerce platforms such as Amazon, Flipkart, Myntra. The cashback will be offered via Swiggy Money, the statement said.

Swiggy is also offering a complimentary 3-month Swiggy One membership. Users will also get the rewards and benefits offered by Mastercard such as free stay and dine, complimentary loyalty memberships, among others. 

Commenting on the development, Swiggy CFO Rahul Bothra said customers are actively looking for rewards and benefits on their spending and this initiative is a response to this demand. 

The move is likely an attempt by Swiggy, which claimed to have attained profitability in its food delivery business as of March this year, to get new customers and shore up its topline. The food delivery space in the country is mostly a Zomato-Swiggy duopoly, with ONDC just about emerging as a threat.

As such, both Zomato and Swiggy are often involved in competition, trying to come out with new, and very often, similar offerings. Earlier this month, Swiggy announced the launch of a dashboard to help its partner restaurants make expansion plans. The announcement came days after Zomato launched ‘Zomato Food Trends’ to provide data insights to its partners.

Earlier this month, Swiggy also acquired FMCG retail distribution company LYNK Logistics to foray into the food and grocery retail market. The company also announced a $50 Mn ESOP liquidity programme this week.