Swiggy plays catch-up with Zomato across key metrics: Report

Zomato’s total net fixed assets more than quadrupled to Rs 6,351 crore in FY23 from Rs 1,405 crore in FY22, while Swiggy’s assets grew 87.9% to Rs 1,505 crore during the same period, according to data from PrivateCircle Research.

Net fixed assets stabilised for Zomato from FY23 to FY24, with the company ending with Rs 6,466 crore. On the other hand, Sriharsha Majety-led Swiggy’s total net fixed assets grew 35.6%, although at a much lower base than its peer, ending FY24 with Rs 2,041 crore. 

Fixed assets encompass dark stores and delivery warehouses owned and operated by the companies, especially for their quick commerce operations.

“Both Swiggy and Zomato saw fluctuations in YoY growth in FY2020 and FY2022, likely driven by the demand spike for food delivery services during the COVID-19 pandemic followed by a correction afterwards,” stated the report. 

Both companies, which compete in the food delivery and quick commerce sectors, offer a stark difference in their annual growth trajectories. On a year-over-year basis, Zomato grew 67% in FY24 while Swiggy grew 33.5% during the same period. 

While both companies “significantly reduced” their losses since FY2020, only Zomato managed to turn EBITDA positive in FY24. Swiggy currently operates with a negative EBITDA of 16% in FY24.

IPO-bound Swiggy’s revenue from operations was Rs 3,222.21 crore in the first quarter of FY25, a 34.8% increase from Rs 2,389.81 crore in the same quarter of the previous year, the company's updated draft red herring prospectus showed. Its losses widened by 8.31% to Rs 611 crore in Q1 FY25. 

Blinkit parent Zomato reported a 74% jump in its operating revenue at Rs 4,206 crore during the first quarter. More importantly, Zomato reported a profit of Rs 253 crore, marking the company's fifth straight profitable quarter.