The competition between India’s two biggest food delivery giants, Swiggy and Zomato, just got even more interesting. Recently, Swiggy grabbed headlines by becoming the official sponsor for Shark Tank India Season 4. While this might sound like just another business deal, there’s a twist: Zomato CEO Deepinder Goyal, who appeared as an investor in previous seasons, has been kicked out of the show!

Yep, you heard that right. Goyal himself confirmed that Swiggy’s sponsorship deal had a catch: no Zomato executives allowed. This is just the latest development in the ever-growing rivalry between Swiggy and Zomato. Let’s dig into what this means for the food delivery market and how Swiggy is gearing up for its upcoming ₹5,000 crore IPO.

Swiggy Becomes the Sponsor of Shark Tank India 2024

Swiggy, one of India’s leading food delivery platforms, has officially taken over as the sponsor for Shark Tank India Season 4. The popular show is known for bringing together budding entrepreneurs and experienced investors, making it a prime platform for Swiggy to showcase its brand.

However, the sponsorship deal came with a condition that raised a few eyebrows: Zomato’s CEO, Deepinder Goyal, would not be allowed to return as an investor. Speaking at the ET Startup Awards 2024, Goyal humorously commented, “I can’t go back because Swiggy sponsored Shark Tank and kicked me out.” While he played it off with a laugh, this move signals a serious power play in the Swiggy vs Zomato rivalry.

By sponsoring Shark Tank India, Swiggy is clearly positioning itself as a major player, not just in the food delivery market but in the business world at large. This deal comes at a crucial time as Swiggy prepares for its much-anticipated IPO in 2024.

The Swiggy vs Zomato Rivalry: It’s Heating Up!

Swiggy and Zomato have been rivals for years, and the competition is only getting more intense. Both companies are fighting for dominance in India’s booming food delivery market, and now, they’re battling it out in the public eye with moves like Swiggy’s sponsorship of Shark Tank India 2024.

Zomato has long been the more established player, with a market capitalization of $25 billion—more than double Swiggy’s estimated $10 billion valuation. Zomato went public back in 2021, while Swiggy is now preparing for its own ₹5,000 crore IPO. But despite Zomato’s head start, Swiggy has been catching up fast.

Zomato isn’t just relying on food delivery, though. They’ve diversified their business with ventures like Hyperpure (a B2B service providing fresh ingredients to restaurants) and Blinkit, their quick-commerce platform that competes directly with Swiggy’s Instamart. The quick commerce market is where things get really heated, as both companies battle to deliver groceries and essentials in record time.

#Swiggy to sponsor #SharkTank Season 4, excludes #Zomato founder Deepinder Goyal as part of dealhttps://t.co/tm39xJLGRK

— CNBC-TV18 (@CNBCTV18Live) October 6, 2024

Why Was Zomato’s CEO Excluded from Shark Tank India 2024?

So, why was Deepinder Goyal, one of India’s most recognized entrepreneurs, kicked out of Shark Tank India? Well, it’s simple: Swiggy didn’t want their biggest rival’s CEO on the show they’re sponsoring.

Goyal’s exclusion from the investor panel isn’t just a fun bit of drama—it’s a calculated move by Swiggy to assert its dominance. By ensuring that their competitor’s CEO is out of the picture, Swiggy is taking full control of the narrative. It’s a power move that highlights just how intense the competition between these two companies has become.

Swiggy’s ₹5,000 Crore IPO: What’s Next?

Swiggy is on the brink of something big. The company is set to launch its ₹5,000 crore IPO in 2024, which includes a fresh issue of ₹3,750 crore and an offer-for-sale (OFS) of over 185 million shares by existing shareholders. This IPO is Swiggy’s shot at raising the capital it needs to continue growing its food delivery and quick commerce operations.

Financially, Swiggy has shown some impressive growth recently. The company reduced its losses by 43% in FY24, bringing them down to ₹2,350 crore, while its revenue from operations grew by 36% to ₹11,247 crore. Despite these gains, Swiggy is still facing challenges, with rising expenses leading to a wider loss in the April-June quarter of FY25.

But with the IPO on the horizon and their brand visibility growing thanks to the Shark Tank India sponsorship, Swiggy is clearly positioning itself for long-term success. The company’s quick commerce service, Instamart, is one area that investors will be watching closely as it competes directly with Zomato’s Blinkit.

Zomato’s Strong Market Position and What’s Next

While Swiggy is making big moves, Zomato isn’t sitting idle. With a market cap of $25 billion and a well-diversified business model, Zomato is still very much in the game. In fact, food delivery makes up 46.17% of Zomato’s total revenue, but that’s not all they do. Zomato has expanded into the B2B sector with its Hyperpure business and has also strengthened its quick commerce offering with Blinkit.

However, with Swiggy taking over platforms like Shark Tank India, the pressure is on Zomato to keep innovating and stay ahead of the competition. Both companies are pushing the boundaries of what’s possible in the food delivery market, and the next few years will be crucial in determining who comes out on top.

What Entrepreneurs Should Watch Out For

Swiggy’s sponsorship of Shark Tank India opens up new possibilities for entrepreneurs, especially those in the food tech and logistics sectors. Startups pitching on the show might now have the opportunity to collaborate with Swiggy, one of India’s biggest food delivery companies.

For aspiring entrepreneurs, the Swiggy vs Zomato rivalry serves as a reminder of how fast the market can evolve. Innovation is key in this space, and companies need to stay agile to survive in such a competitive environment. Watching how Swiggy and Zomato navigate these challenges can provide valuable insights for any entrepreneur looking to make their mark in the food tech space.

Conclusion: What’s Next in the Swiggy vs Zomato Battle?

The food delivery battle between Swiggy and Zomato is far from over. With Swiggy taking bold steps like sponsoring Shark Tank India and gearing up for its ₹5,000 crore IPO, the company is making it clear that they’re not afraid to challenge Zomato’s dominance.

Meanwhile, Zomato continues to hold a strong position in the market, thanks to its diverse business model and strategic acquisitions. But as the rivalry intensifies, both companies will need to keep innovating to stay ahead.

For consumers, startups, and investors, this ongoing competition between Swiggy and Zomato means exciting times ahead for the food delivery industry in India. Stay tuned—there’s a lot more to come!