🥊 Swiggy’s ₹11,327 Crores IPO vs Zomato's Market Dominance

Swiggy’s IPO structure includes a fresh issue of ₹4,499 crore and an offer-for-sale (OFS) component of ₹6,828.43 crore. This is higher than Zomato, which raised a total of ₹9,375 crore, and had a combination of a fresh issue worth ₹9,000 crores and an OFS of ₹375 crores in 2021.

Moreover, Zomato has already established its footing, showing strong profitability and steady growth. On the other hand, Swiggy hasn’t been able to become profitable. The company just reported a net loss for the year at ₹2,350 crore, which is 44% lower than a year ago, according to an Economic Times article. By comparison, Zomato reported a net profit of ₹351 crore in FY24.

However, there are other areas in which Swiggy is focused, like its new offering ‘Bolt’, which ensures delivery of food items within ten minutes for products that don’t require extensive preparation. This indicates the company’s seriousness towards quick commerce.

🔢 The number comparison...

With its substantial 45% share in food delivery, Swiggy holds a prominent position, but its relatively small 25% share in quick commerce could limit its growth in this segment. For investors, the decision isn’t just about jumping on a high-profile IPO—it’s about weighing the chances of substantial returns against the financial uncertainties.

Although recent pressures have created some fluctuation, Zomato has largely held its ground, surpassing a market cap of $25 billion.

Since going public, Zomato has impressed investors with a remarkable 285% growth in just two years. Year-to-date (YTD), Zomato shares have surged more than 93%, standing out in a highly competitive industry.

🥊 Battle of the Food Giants

Analysts widely acknowledge Zomato’s edge over Swiggy, citing its size, profitability, and market share as key differentiators. Zomato’s superior metrics in food delivery solidify its position as the leader.

At the same time, Swiggy, though competitive, has a few hurdles to overcome. This rivalry isn’t just a fight for market share—it’s a battle over which company can offer the most attractive returns for investors. Zomato makes one wonder about its productivity levels. And, at best, Swiggy will have a chance to catch up if it maximises the resources it has gained from the IPO.