Zomato welcomes rival Swiggy on Dalal Street

Food delivery giant Zomato welcomed rival Swiggy’s debut on Dalal Street on Wednesday through a post on X, formerly known as Twitter.

"You and I... In this beautiful world,” read Zomato’s post on X. The post included an image of Swiggy and Zomato delivery personnel standing in front of the BSE building, featuring a banner announcing Swiggy's listing.

In response, Swiggy said 'It’s giving Jai and Veeru'.


https://x.com/zomato/status/1856547541828935915

Shares of Swiggy listed at a 7.69% premium over its IPO price of Rs 390 on NSE. The company listed at Rs 420 on NSE. Meanwhile, it debuted with a premium of 5.64% at Rs 412 on BSE.

Even though Swiggy entered both food delivery and quick commerce arenas prior to Zomato, the Dalal Street debutant has been trailing its listed rival across metrics. For the first quarter of FY25, Swiggy’s operating revenue came in at Rs 3,222 crore vs Zomato’s Rs 4,206 crore.

Additionally, during Q1 FY25, Swiggy posted a net loss of Rs 611 crore compared to Zomato’s net profit of Rs 253 crore. Meanwhile, Zomato has posted profits for every quarter since April-June 2023.

Brokerage JM Financial expressed a preference for Zomato over Swiggy, reflecting the challenges Swiggy may face in establishing its hold in this space, citing Zomato’s market dominance and superior execution.

Also read | Would prefer Zomato over Swiggy if asked to pick only one: Brokerage JM Financial

After listing, Swiggy shares jumped 13% to settle at Rs 464 on BSE with its market capitalization crossing the Rs 1 lakh crore mark.

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