Food delivery platform Swiggy has almost finalised the agreement to sponsor the fourth season of Shark Tank India.
Swiggy has demanded that Zomato CEO Deepinder Goyal shall not return to the show as an investor, Goyal said. This move by the IPO-bound company shows the rising competition and rivalry among the food delivery platforms.
“I unfortunately can't go back because Swiggy sponsored Shark Tank this time and kicked me out,” Goyal said at ET Startup Awards 2024 on Saturday.
“Apparently, that's what I heard. They (Swiggy) said that this is the sponsorship, and DP (Deepinder Goyal) can't be on the show,” he added.
Swiggy's proposed ₹5,000 crore IPO will comprise of fresh issue of equity shares worth ₹3,750 crore and an offer-for-sale (OFS) of 185,286,265 equity shares by existing shareholders. It will also have segments for qualified institutional buyers (QIBs), anchor investors, and mutual funds.
Swiggy’s IPO plan comes three years later after Zomato got listed. This year, Zomato’s stock rose to 125%.
Currently, Zomato’s market capitalization is at $25 billion, which is more than double of Swiggy's estimated $10 billion valuation.
A major portion of Zomato's revenue comes from its food delivery service, which is 46.17 per cent of the total share. Its other revenue sources include B2B Hyperpure business and Blinkit. Zomato had acquired Blinkit, which directly competes with Swiggy's Instamart.
In terms of financial performance, Swiggy reduced its losses by 43 per cent in FY24, at ₹2,350 crore due to growth in its food delivery and quick commerce businesses.
Revenue from operations was at ₹11,247 crore in FY24, marking a 36 per cent growth. In the April-June quarter of FY25, revenue rose to ₹3,222 crore from ₹2,389 crore in the same quarter previous year. The expenses also surged to ₹3,908 crore from ₹3,073 crore, widening the losses to ₹611 crore from ₹564 crore the previous year.
