India’s largest privately valued food and grocery delivery firm Swiggy has been making some moves on the fintech front for the past two years. In 2020, the company launched Swiggy Money which is powered and enabled by ICICI Bank and also applied for a payment aggregator license in 2021.
Now, the company is planning to launch a co-branded credit card, according to two people aware of the details. “There has been an ongoing discussion for the past several months to have a co-branded credit card which could be used for payments across Swiggy’s platform including Instamart, Genie and DineOut,” said one of the people cited above requesting anonymity.
According to sources, a co-branded credit card is a natural progression for Swiggy after it bought DineOut. Swiggy acquired table reservation platform DineOut for about $120 million in May this year.
“Swiggy is in talks with several banks for the co-branded credit card but chances are high to go with ICICI Bank,” said the source quoted above. “The plan is almost final and if nothing changes at the last moment, it will (co-branded credit card) be launched later this year.”
Queries sent to Swiggy on Wednesday evening did not elicit any response. We will update the story in case the company responds.
Swiggy’s rival Zomato launched a co-branded credit card in March 2020 through a partnership with Mastercard and RBL Bank. While neither Zomato nor its two partners has given the number of cards issued until now, they set a target to issue about a million credit cards by March 2022. Queries sent to Zomato on its credit card numbers didn’t elicit any immediate response.
With the potential co-branded credit card, Swiggy will join the ranks of Amazon, Ola and Flipkart among others who already have such cards. However, sources outline that most of these players have not seen any critical success as far as scale is concerned. It would be exciting to see how Swiggy’s potential co-branded credit card would fare up.