Two biggest food delivery startups from India, Zomato and Swiggy have extended the hands of friendship when Zomato on it’s X handle (formerly twitter), have shared a heartfelt post congratulating Swiggy on its market debut. The post was captioned “You and I…. In this beautiful world”, featuring two delivery personnel of both the rival companies looking at the Bombay Stock Exchange. This spirit of healthy competition and mutual respect by Zomato is widely appreciated by many while Swiggy replied on this post with “It’s giving Jai and Veeru”.
Zomato vs. Swiggy : Which is a better Investment option?
Zomato and swiggy, founded in 2008 and 2014 respectively, soon became one of the biggest and more successful startups from India with the dominance of 58% and 38% market shares respectively.
Zomato, till now was leading as the only Indian food delivery company listed on the equity markets since July, 2021. The IPO was priced at 76 per share and the company raised around 9,375 crore.Since thenZomato shares have been more than triple as of Nov 2024 (2.14 lakh crore).
On Nov 13 2024, Swiggy Ltd. listed itself at a premium of 7.69% over it’s IPO price of Rs. 390, while at a premium of 5.64% at rs. 412 on BSE. The company listed at Rs. 420 on NSE and the offering raised Rs. 11,327 crore approximately.Swiggy IPO made a fresh issue of 11.54 crore equity share worth of 4,499 crore. With this an offer for sale of 17.51 crore shares which is valued at 6828 crore.
Althoughswiggy made a successful and blockbuster entry in the share market, many financial investors and observers have made a comparison between Zomato and swiggy regarding better investment options and concluded thatswiggy still has a long way to go and they would prefer Zomato over swiggy at current market price.
As per the report of Goldman Sachs’ zomato’s total GOV in 2023 was about 30 to 35% higher compared to that of swiggy.
Zomato and swiggy: India’s top startups
CEO of Zomato- Deepinder Goyal
CEO of Swiggy – Sriharsha Majety
The revenue of Zomato for the financial year 2024 was 12,114 crore while swiggy’s revenue was 11,247 crore. However Zomato made a profit of 351 crore and swiggy was at a lost of 2,350 crore decreasing by 44% shrinking the disparity with its rival company.
With their exceptional market strategy and business model bothZomato and swiggy became India’s top food delivery startups.
Beside their food delivery business, these rival companies owns quick commerce segment which is blink by Zomato and swiggyinstamart which aims to deliver grocery within 10 minutes.
While Zomato is appreciated for innovative marketing strategies and impressive advanced SEO strategies and engaging social media presence, swiggy is no behind and focuses more on influencer marketing and try to connect with the audience at a broader level.
Not only this but Zomato and swiggy have also impacted India’s gig economy by creating a large number of part time jobs and work opportunities. Their success not only inspires but have shown a new era of tech driven entrepreneurship in India.
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