Title – Calculation of Beta of Swiggy and its significance
Author – Shraddha Phajage
Introduction – Swiggy is a leading Indian on-demand convenience platform that revolutionized food delivery through its hyper-local logistics network. Founded in 2014, it has expanded beyond meals into quick commerce with Instamart for groceries and Genie for package deliveries. By leveraging real-time data and a massive delivery fleet, Swiggy has become an essential part of the urban Indian lifestyle.
Objective – Calculation of Beta and Observe its significance.
Literature review
1.Kirti Prashar, Dr. Simerjeet Singh Bawa, and Tanveer Kaur (2022) analyze Swiggy’s disruptive entry into the Indian market by focusing on its transition from a simple food aggregator to an integrated tech-logistics powerhouse. Their research highlights that Swiggy’s decision to build an in-house delivery fleet—rather than relying on third-party services—was the critical factor in solving the “reliability gap” in hyperlocal delivery. By prioritizing a user-centric interface and shrinking delivery times, the authors argue that Swiggy successfully increased its customer lifetime value through diversified revenue streams.
2.Jayadatta S. (2023) provides a comprehensive strategic study emphasizing Swiggy’s technological scalability and its ability to manage complex operations across hundreds of cities. The author explores the competitive duopoly between Swiggy and Zomato, noting that Swiggy’s core strength lies in its advanced data analytics, which predicts consumer behavior based on local trends and environmental factors. The research concludes that Swiggy’s long-term sustainability depends on its strategic shift from “growth at all costs” to achieving operational profitability through segments like Instamart and advertising.
Data collection –The data for Nifty 50 and Swiggy was downloaded from NSE India.com for the period of 1-01-2025 to 31-12-2025 Friday closing prices for Nifty 50 and Swiggy was segregated weekly returns of Nifty 50 and Swiggy were calculated. Weekly returns of Nifty 50 were taken as X and weekly returns of Swiggy were taken as Y. Y was regressed on X.
Data Analysis – In place of Swiggy is Swiggy and Price is Nifty 50.
Swiggy =0.059877-0.00121nifty+e
(-1.75576)*
N=47,R- square = 0.064112, F = 3.082684*
The above equation shows the relationship between price and demand. Negative sign means there is inverse relationship which means if price rises, demand falls and vice versa If price rises by 1 unit, The demand rises by -0.00121. Number of observations are 47.
T stands for Beta -175. The P-value for which is 0.08 is more than 0.05 meaning Beta is statistically significant at 10% level, meaning price impact at 10% level, R- square is 0.05 meaning only 8% , demand is explained by price, 92% is the error due to the variables not included in the model.
Conclusion –Invest in Raymond Lifestyle Limited for long term.