Kamal Ghorui
Bengaluru: Swiggy cofounder Nandan Reddy has stepped down from the company’s board and will exit the firm to pursue independent projects, marking a key founding-level transition at the listed food delivery and quick commerce platform.The company disclosed in a stock exchange filing on Friday that Reddy is “stepping down from his board position and moving on from Swiggy to pursue personal independent projects,” with effect from April 10.People aware of the matter said Reddy is likely to start up again, although details of his next venture are not yet known. Swiggy was founded in 2014 by Sriharsha Majety, Reddy and Rahul Jaimini. While Majety continues as group CEO, Jaimini exited the company in 2020 and went on to found Pesto AI, a startup that connects companies to remote developers.In an internal email to employees, Reddy reflected on his journey with Majety, calling him a mentor, cofounder and “one of my closest friends,” and said he would count the association among the “greatest privileges” of his life.Reddy’s exit comes at a time when Swiggy is navigating a crucial phase as a publicly listed company, balancing growth ambitions in quick commerce with profitability pressures. The company faces intensifying competition in quick commerce from rivals such as Zomato-owned Blinkit, Zepto, and newer entrants, even as large ecommerce players step up investments in the segment.A recent note by JM Financial downgraded the stock to “reduce,” flagging concerns around Swiggy’s quick commerce arm Instamart. The brokerage said the business is caught in a “growth-versus-profitability deadlock,” with management focusing on improving contribution margins rather than aggressively scaling market share.It added that Instamart’s losses could narrow in the near term, but flagged limited visibility on a credible turnaround, with the segment unlikely to deliver meaningful profitability in the foreseeable future. The brokerage also warned that increasing competition from traditional ecommerce players could further pressure the business.At the same time, Swiggy’s core food delivery business continues to show stable demand and improving margins, although analysts noted it may not be strong enough to offset losses from quick commerce and other segments.Against this backdrop, JM Financial said a potential merger or acquisition could be the “best possible outcome” for investors, while revising its price target downward.Separately, Swiggy has elevated cofounder Phani Kishan Addepalli and group chief financial officer Rahul Bothra as executive directors on its board, subject to shareholder approval.Addepalli, who joined in 2015 and was later elevated as cofounder, currently serves as chief growth officer and has led several of the company’s growth initiatives, including Instamart. Bothra, Swiggy’s first CFO, has overseen its financial strategy, including its IPO and subsequent capital raises.The company has also appointed Renan De Castro Alves Pinto, a Prosus executive, as a nominee director, replacing outgoing director Roger Rabalais.
