Meghna Barik, Pune
Shark Tank India’s fourth season could see Swiggy, the food and grocery delivery platform headed for an IPO close to landing a ₹25 crore sponsorship deal.Zomatos CEO and founder Deepinder Goyal will not be attending the event because of a major disclaimer that investor insiders have disclosed.This action highlights the growing competition between Zomato and Swiggy, the two market leaders for grocery and meal delivery services.
A few years ago Zomato and Swiggy were evenly matched but since then Zomato has gained the upper hand and Swiggy is keen to close the difference. The rising cost of Swiggy’s marketing, particularly as it gets closer to going public, draws attention to its top strategic goals. Recently the platform filed an updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) with the goal of raising ₹3750 crore through new issues and selling an additional 18. 53 crore shares as part of an offer for sale (OFS) valued at approximately ₹6500 crore.
Furthermore, Swiggy’s shareholders approved raising the primary issue size to ₹5000 crore at its Extraordinary General Meeting (EGM) on October 3. This move allows for flexibility in case additional funding is required. From ₹8265 crore in FY23 to ₹11247 crore in FY24 Swiggy’s revenue increased by 36% in terms of financial performance. Nevertheless losses dropped by 44% indicating improved cost management. However Swiggy encounters difficulties.
Because of rising expenses it reported a ₹611 crore loss in Q1FY25. In the meantime Zomato is still outperforming Swiggy with ₹12114 crore in revenue and ₹351 crore in profit in FY24. A crucial component of Swiggy’s plan is the marketing push as the company gets ready to raise ₹950 crore for customer acquisition and brand awareness. Although Swiggy, Zomato and Sony Television did not comment on the sponsorship deal, it is evident that the two businesses are rivals. In preparation for its public listing, Swiggy may have taken a calculated risk when deciding to ban Goyal from Shark Tank.
The stark rivalry between Zomato and Swiggy is highlighted by Swiggy’s choice to sponsor Shark Tank India while preventing Zomato’s Deepinder Goyal from taking part. In order to overtake Zomato and fortify its market position, Swiggy is making significant financial and marketing strides in advance of its initial public offering (IPO).