Zomato vs Swiggy: What Nuvama says on these two online food aggregators
06 November 2024
Nuvama Institutional Equities in its latest report compared listed online food aggregator Zomato with its unlisted peer Swiggy after the latter recently reported its FY22 financial results. While Swiggy’s revenue surged 124 per cent YoY for the year, its cash burn tripled to Rs 3,100 crore, driven by a fourfold jump in raw material and advertising spends, Nuvama highlighted.
The domestic brokerage said that both players are slugging it out for a bigger pie of the food and grocery delivery space, but Zomato is gradually gaining higher market share.
Results released by Prosus, Nuvama said, show that the gross order value (GOV) of Swiggy’s food delivery and quick commerce in the first half of Calendar 2022 stood at $1.3 billion while it stood at $1.6 billion for Zomato and $275 million for Blinkit. That, it said, is a good delivery so far, but the space is dynamic and the order might change.
Cash burn
In their quest to grab market share, said Nuvama, Zomato and Swiggy have been burning cash and clocking strong growth. While Swiggy burnt Rs 10,300 crore over FY19–22, Zomato has fared better with controlled cash burn of Rs 5,650 crore.
Nuvama Institutional Equities in its latest report compared listed online food aggregator Zomato with its unlisted peer Swiggy after the latter recently reported its FY22 financial results. While Swiggy’s revenue surged 124 per cent YoY for the year, its cash burn tripled to Rs 3,100 crore, driven by a fourfold jump in raw material and advertising spends, Nuvama highlighted. The domestic brokerage said that both players are slugging it out for a bigger pie of the food and grocery delivery space, but Zomato is gradually gaining higher market share. Results released by Prosus, Nuvama said, show that the gross order value (GOV) of Swiggy’s food delivery and quick commerce in the first half of Calendar 2022 stood at $1.3 billion while it stood at $1.6 billion for Zomato and $275 million for Blinkit. That, it said, is a good delivery so far, but the space is dynamic and the order might change. Cash burn In their quest to grab market share, said Nuvama, Zomato and Swiggy have been burning cash and clocking strong growth. While Swiggy burnt Rs 10,300 crore over FY19–22, Zomato has fared better with controlled cash burn of Rs 5,650 crore.
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