The IPO market is abuzz with anticipation, especially with Swiggy’s recent announcement about its Initial Public Offering (IPO). This resurgence in interest also rekindles the longstanding rivalry between Swiggy and Zomato. With Swiggy now having filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), it’s time to dive deep into the comparisons between these two culinary delivery giants.
Swiggy vs. Zomato: A Financial Overview
When we delve into the financials of both companies, a contrasting picture emerges. Swiggy’s food delivery segment is in a critical turnaround phase, while Zomato seems to be steadying its ship. Let’s break down the key figures from the financial year 2024.
| Financial Metrics | Swiggy | Zomato |
|---|---|---|
| Total Income | Rs 11,247.3 crore | Rs 12,114 crore |
| EBITDA Loss | Rs 2,208 crore | Rs 42 crore |
| Net Loss | Rs 2,350.2 crore | Rs 351 crore (Profit) |
| Cash Reserves | Rs 5,446 crore | Rs 12,241 crore |
Q1 FY 2025 Financial Comparison
Moving on to the first quarter of the financial year 2025, let’s examine the performance of both companies:
| Financial Metrics | Swiggy | Zomato |
|---|---|---|
| Total Income | Rs 3,222.2 crore | Rs 4,206 crore |
| EBITDA Loss | Rs 544.2 crore | Rs 177 crore |
| Net Loss | Rs 611 crore | Rs 253 crore (Profit) |
| Cash Reserves | Rs 2,038.19 crore | Rs 12,539 crore |
Breaking Down the Food Delivery Market
In terms of gross order value, the competition intensifies. Here’s how both companies performed in the food delivery market during FY 2024 and the first quarter of FY 2025:
| Metrics | Swiggy | Zomato |
|---|---|---|
| Gross Order Value (FY 2024) | Rs 24,717.4 crore | Rs 32,223 crore |
| Monthly Active Users (FY 2024) | 1.27 crore | 1.9 crore |
| Contribution Margin (FY 2024) | 5.72% | 6.90% |
| Gross Order Value (Q1 FY 2025) | Rs 6,808.3 crore | Rs 9,264 crore |
| Monthly Active Users (Q1 FY 2025) | 1.40 crore | 2.03 crore |
| Contribution Margin (Q1 FY 2025) | 6.40% | 7.30% |
Quick Commerce Segment: A Comparative Analysis
In the quick commerce sector, Swiggy’s Instamart is competing directly with Zomato’s Blinkit. Let’s examine the numbers:
| Quick Commerce Metrics | Swiggy Instamart | Zomato Blinkit |
|---|---|---|
| Gross Order Value (FY 2024) | Rs 8,068.5 crore | Rs 12,469 crore |
| Active Dark Stores (FY 2024) | 523 | 526 |
| Contribution Margin (FY 2024) | -6.01% | 2.13% |
| Gross Order Value (Q1 FY 2025) | Rs 2,724 crore | Rs 4,923 crore |
| Active Dark Stores (Q1 FY 2025) | 557 | 639 |
| Contribution Margin (Q1 FY 2025) | -3.18% | 4% |
Utilization of IPO Proceeds
As Swiggy prepares for its IPO, a significant portion of the raised funds will be allocated towards various crucial areas:
- Scootsy Loan Repayment: Rs 137.4 crore
- Instamart Dark Stores Development: Rs 982.4 crore
- Brand Marketing and Promotion: Rs 929.5 crore
- Tech and Cloud Infrastructure Development: Rs 586 crore
This information illustrates the strategic directions both companies are taking as they vie for market dominance in India’s fast-evolving food delivery and quick commerce sectors.
