Zomato's strong growth overtakes Swiggy

Swiggy's largest investor- Prosus states that Swiggy's overall gross order value of food delivery and quick commerce grew by 26% which was way behind its listed competitor- Zomato's growth of 36%.

Additionally, Swiggy's overall revenue growth Y-o-Y was only 24% as compared to Zomato's adjusted revenue growth of 55.9% Y-o-Y.

In FY24, Swiggy's trading loss decreased to $158 million, while Zomato reported positive operating profit of almost $5 million. 

The total number of delivery partners were 387,000 for Swiggy and 418,000 for Zomato. Similarly, Swiggy's Instamart had 487 active stores, while Zomato's Blinkit had 526 stores.

Furthermore, Zomato is in talks to acquire One97 Communications' (Paytm) movie ticketing and event businesses. The claimed valuation is between ₹1600-₹2000 crores, which is around 0.9-1.2 times the FY24 sales.

This acquisition is expected to add around 14-15 percent of revenues to Zomato's business, fuelling its growth. Its strong cashflows will help in its acquisition of Paytm and will not stress its balance sheet.

Swiggy also had filed its DRHP with Sebi for an IPO in April.