Swiggy IPO reveals its business model differences from rival Zomato
Swiggy’s recent IPO filing shows significant differences in its business model compared to competitor Zomato, despite both being major players in India’s food delivery market. While Swiggy’s B2C operations, including food delivery and quick commerce, account for 61 per cent of revenue, its B2B supply chain segment contributes a substantial 39 per cent – marking a key distinction from Zomato’s business structure.
In Q1 FY25, Swiggy reported B2C gross order value of ₹10,189 crore, a 23 per cent year-on-year increase, with B2C revenue rising 35 per cent to ₹1,954 crore. The company’s consolidated revenue grew 34 per cent to ₹3,222 crore, though it posted a net loss of ₹611 crore and adjusted EBITDA of -₹347 crore.
Both companies operate B2B segments, but with different focus areas. Swiggy’s supply chain services target wholesalers and retailers, while Zomato’s Hyperpure concentrates on restaurant fulfillment services. Swiggy has diversified beyond food delivery into quick commerce through Instamart, pickup services via Genie, and dining out through Dineout.
The online food delivery market in India, valued at ₹60,000 crore in FY23, is projected to grow at 20 per cent CAGR to reach ₹1.5 lakh crore by FY28. Swiggy’s monthly transacting users increased from 10.26 million in FY22 to 14.29 million in FY24, indicating strong market penetration.