Swiggy-Shark Tank Agreement: As Swiggy prepares for its upcoming IPO, the food and grocery delivery platform is reportedly nearing a Rs 40-60 crore sponsorship deal for the fourth season of Shark Tank India. However, this sponsorship comes with a significant stipulation: Zomato founder and CEO Deepinder Goyal must not return as an investor on the show, according to various news reports.
This move underscores the escalating rivalry between Swiggy and Zomato, two leading players in the food and grocery delivery market. While the companies were closely matched a few years ago, Zomato has gained a noticeable advantage in recent times, establishing a clear lead over Swiggy in both sectors. Swiggy’s attempt to block Goyal’s return highlights the intense competition between the two firms, particularly as Swiggy gears up for its public listing.
Swiggy’s recent draft red herring prospectus (DRHP) outlines the company’s plan to raise Rs 3,750 crore, with Rs 950 crore earmarked for brand marketing and awareness initiatives aimed at broadening its customer base. The sponsorship deal with Shark Tank India, a widely viewed entrepreneurial reality show on Sony Television, aligns with Swiggy’s strategy to enhance its brand visibility ahead of the IPO.
The fourth season of Shark Tank India is currently underway, featuring returning sharks such as Anupam Mittal (People Group), Aman Gupta (boAt Lifestyle), Namita Thapar (Emcure Pharmaceuticals), Peyush Bansal (Lenskart), and Ritesh Agarwal (OYO). Deepinder Goyal made his debut as a shark in Season 3, earning accolades for his keen insights and straightforward feedback. His involvement on the show significantly enhanced his popularity, leading to vibrant discussions on social media regarding his interactions with entrepreneurs.
Swiggy’s choice to prevent Goyal from returning may be associated with its impending IPO, as the competition between the two platforms intensifies. Zomato, which went public three years ago, has enjoyed considerable success in the stock market, with its market capitalization approaching $30 billion in recent weeks.
From a financial standpoint, Swiggy has demonstrated robust growth, with revenue rising by 36 percent from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. Additionally, the company successfully reduced its losses by 44 percent, decreasing from Rs 4,179 crore to Rs 2,350 crore, largely due to stricter expense management. In contrast, Zomato reported revenue of Rs 12,114 crore and a profit of Rs 351 crore in FY24.
Zomato also experienced remarkable growth, achieving a 74 percent year-on-year increase in revenue, totaling Rs 4,206 crore, along with generating a profit of Rs 253 crore during the same period.
As Swiggy prepares for its public debut, its marketing expenditures and rivalry with Zomato are anticipated to significantly influence its future trajectory.