Swiggy sponsoring Shark Tank India, Zomato CEO Deepinder Goyal ousted
Swiggy, a leading food delivery platform, is on the verge of finalizing a sponsorship deal for the fourth season of Shark Tank India. This development was revealed by Zomato CEO Deepinder Goyal during his speech at the ET Startup Awards 2024. He stated that as part of this agreement, he has been excluded from returning to the show as an investor.
Goyal expresses disappointment over exclusion from show
Goyal expressed his disappointment at the ET Startup Awards 2024, stating, "I unfortunately can't go back because Swiggy sponsored Shark Tank this time and kicked me out." He further added, "Apparently, that's what I heard. They (Swiggy) said that this is the sponsorship, and DP (Deepinder Goyal) can't be on the show." This move by Swiggy underscores the intensifying competition between these two major players in India's food delivery market.
Swiggy's IPO plans and market competition
Swiggy is preparing for a ₹5,000 crore IPO, which will include a fresh issue of equity shares worth ₹3,750 crore and an offer-for-sale (OFS) of 185,286,265 equity shares by existing shareholders. This move comes three years after Zomato's successful listing. Despite the competition, Zomato has managed to double its market capitalization to $25 billion this year - more than twice that of Swiggy's estimated $10 billion valuation.
Zomato and Swiggy's financial performance
Zomato's primary source of revenue is its food delivery service, contributing 46.17% to the total share. Other revenue streams include B2B Hyperpure business and Blinkit, a recent acquisition that directly competes with Swiggy's Instamart. On the other hand, Swiggy has managed to reduce its losses by 43% in FY24 at ₹2,350 crore due to growth in its food delivery and quick commerce businesses.
