Swiggy, a major player in the food delivery industry, has witnessed a remarkable growth in its annual revenue, marking a nearly three-fold increase over the past year, according to Masayoshi Son, the head of Japanese conglomerate SoftBank. Son highlighted this substantial revenue surge between June 2020 and June 2021 during a post-earning presentation, expressing optimism about the potential returns if Swiggy were to go public.
Notable Financial Growth
While specific financial figures for Swiggy’s first quarter of the financial year 2022 were not disclosed by Son, it’s noteworthy that SoftBank led Swiggy’s $1.25 billion funding round last month. However, as a privately held company, Swiggy is not obligated to publicly disclose its financial performance on a quarterly or annual basis, unlike Zomato, which is a publicly traded entity.
In comparison, Zomato reported a revenue increase of over three times in the first quarter of FY22 compared to the same period last year. Despite this significant revenue growth, Zomato also experienced a widening of losses during the same timeframe, underscoring the challenges faced by food delivery platforms in maintaining profitability amid rapid expansion and stiff competition.
Neck and Neck Competition
Swiggy and Zomato, the two key players in India’s food delivery market, have been closely competing in terms of revenue and market share. Their revenue performance in FY20 indicated a neck and neck race, with both companies facing similar challenges and opportunities, including the impact of the COVID-19 pandemic on consumer behavior and order volumes.
While Swiggy reported a revenue of ₹2,776 crore in FY20, Zomato’s revenue for the same period was close to ₹2,742 crore. However, Zomato’s revenue experienced a decline in FY21 due to the pandemic, with the company reporting revenue of ₹1,994 crore.
Similar Metrics and Operational Scale
Beyond revenue, both Swiggy and Zomato exhibit similar operational metrics, reflecting their extensive reach and scale in the food delivery space. Son noted that Swiggy was processing approximately 1.5 million orders per day, translating to around 45 million orders per month. In comparison, Zomato previously announced that it was fulfilling 1.25 million orders daily in 2019, underscoring the intense competition and operational efficiency of both platforms.
As Swiggy continues to demonstrate robust revenue growth and operational scale, the ongoing competition with Zomato underscores the dynamic and evolving nature of India’s food delivery market, with both companies striving to innovate and capture market share in an increasingly competitive landscape.
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