Swiggy is close to finalizing its sponsorship deal for Season 4 of Shark Tank India, which has led to Zomato CEO Deepinder Goyal being asked not to return as an investor on the show. Goyal revealed this move during the ET Startup Awards 2024, citing that Swiggy had requested his exclusion as part of its sponsorship terms.
“I unfortunately can't go back because Swiggy sponsored Shark Tank this time and kicked me out,” Goyal said. “Apparently, that's what I heard. They (Swiggy) said that this is the sponsorship, and DP (Deepinder Goyal) can't be on the show," he added.
The decision underscores the growing rivalry between India’s top food delivery platforms. Swiggy’s move also coincides with its preparations for a ₹5,000 crore Initial Public Offering (IPO), including a fresh issue of equity shares worth ₹3,750 crore and an offer-for-sale (OFS) of 185,286,265 shares by existing shareholders.
Read More: Swiggy Files Updated IPO Papers, Seeks Rs 3,750 Crore
This IPO comes three years after Zomato's listing, during which Zomato’s stock has surged by 125%. Currently, Zomato boasts a market capitalization of $25 billion, more than double Swiggy's estimated $10 billion valuation.
A significant portion of Zomato’s revenue, around 46.17%, stems from its food delivery service, alongside its B2B Hyperpure business and Blinkit, the latter of which competes directly with Swiggy’s Instamart.
In terms of financials, Swiggy managed to reduce its losses by 43% in FY24, reporting a loss of ₹2,350 crore. Its revenue from operations reached ₹11,247 crore, reflecting a 36% growth. However, in the April-June quarter of FY25, while revenue increased to ₹3,222 crore from ₹2,389 crore in the same period last year, expenses also rose to ₹3,908 crore, widening losses to ₹611 crore from ₹564 crore in the previous year.
Swiggy’s bold sponsorship of Shark Tank India and its strategic moves indicate the intensifying competition between the two major players in India’s food delivery market.