In a move that highlights the fierce competition between food delivery giants Swiggy and Zomato, Swiggy is set to sponsor the upcoming fourth season of Shark Tank India. The deal, valued at ₹25 crore, comes with one key condition: Zomato’s CEO and founder, Deepinder Goyal, will not participate as an investor in this season of the show. Sources close to the matter revealed that Swiggy’s decision underscores the intensifying rivalry between the two companies as they vie for dominance in the food and grocery delivery sectors.
Competition Heats Up Between Swiggy and Zomato
Swiggy’s demand to keep Goyal out of Shark Tank signals the growing tension between the two delivery platforms. A few years ago, Swiggy and Zomato had nearly equal market shares, but Zomato has since surged ahead, especially in food and grocery delivery. As Zomato’s market position continues to strengthen, Swiggy is determined to stay competitive, and this sponsorship could be seen as part of its broader strategy to strengthen its brand and maintain its presence in the highly competitive Indian market.
Swiggy’s Brand Marketing Push Ahead of IPO
Swiggy has been focusing on enhancing its brand image. According to its draft prospectus filed with SEBI, the company plans to allocate ₹950 crore from its upcoming IPO towards brand marketing and customer outreach. Swiggy aims to expand its customer base and raise brand awareness, ensuring that more people become familiar with its services.
Neither Swiggy, Zomato, nor Sony Television has officially commented on the developments regarding this condition or the sponsorship.
Deepinder Goyal’s Popularity on Shark Tank India
Deepinder Goyal made his debut as an investor on the third season of Shark Tank India, where his sharp questions and genuine interest in startups were well-received by both the founders and the audience. Goyal’s presence brought a fresh perspective to the show, and he quickly gained praise for his candid style of engagement.
However, Swiggy’s decision to keep him off the fourth season shows the increasing competition between the two firms, especially with Swiggy gearing up for its IPO.
Zomato’s IPO Success and Swiggy’s Plans
Zomato went public three years ago with a highly successful IPO, and the company’s stock has seen a significant rise in recent weeks. Zomato’s market capitalization has now neared $30 billion, further solidifying its position in the Indian market. With Zomato’s growing success, investors are now turning their attention to Swiggy’s IPO, which is expected to receive a favorable response as well.
Swiggy’s IPO Details and Expectations
Swiggy filed its first draft with SEBI on September 26 and followed up with a revised draft. The company plans to issue new shares worth ₹3,750 crore as part of its IPO. Additionally, 18.53 crore shares will be sold through an Offer for Sale (OFS). If the price per share is estimated at ₹350, the total value of shares under the OFS could reach around ₹6,500 crore. During Swiggy’s board meeting on October 3, shareholders approved a proposal to increase the size of the primary issue under the IPO to ₹5,000 crore.
Conclusion
As Swiggy and Zomato continue their rivalry, Swiggy’s sponsorship of Shark Tank India season 4, along with the condition to exclude Zomato’s CEO Deepinder Goyal, marks a notable moment in the competitive landscape of India’s food delivery market. With Swiggy preparing for its IPO, brand visibility and market positioning will be crucial as it aims to keep pace with its biggest rival, Zomato.
