India’s food delivery giant Swiggy launches credit card

Swiggy has become the latest Indian

startup

to offer its customers a credit card as the food delivery giant broadens its efforts to drive engagement and retention.

The Bengaluru-headquartered startup is co-launching the credit card with HDFC Bank, India’s largest private bank. The credit card will offer customers a 10% cashback on spends on Swiggy and 5% across over 1,000 partnered platforms including

Amazon

, Adidas, Zara, Flipkart,

Nike

, Uber and BookmyShow, Swiggy said.

The card, powered by Mastercard, will also offer a three-month subscription to Swiggy One, a service that waives off delivery charges, and 1% cashback on all other spends, said the startup, which is backed by Prosus, SoftBank, Accel and Invesco. It will also extend a few Mastercard benefits, Swiggy said.

Swiggy joins a roster of a long-list of non-fintech Indian

startups

that have launched a credit card in recent years. The credit cards give the startups an avenue to diversify their revenue streams, make better use of customer

data

, and stimulate spending.

These cards, often laden with tailored benefits, deepen customer loyalty and provide a lucrative gateway into the country’s burgeoning middle-class market, bolstering growth in a fiercely competitive landscape, analysts say. Zomato, Swiggy’s publicly-listed chief rival in India, has also made similar offerings in the past.

“We recognize that modern-day consumers actively seek rewards, offers, and cashback programs that add value to their spending. Keeping this in mind, we have launched this all-encompassing card in partnership with HDFC Bank and Mastercard that makes everyday shopping moments across a range of categories more rewarding and convenient,” said Rahul Bothra, Swiggy CFO, in a statement.