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Swiggy is poised to sponsor the fourth season of Shark Tank India with a sponsorship deal worth ₹25 crore. However, in a bold move, the company has placed a condition: Zomato’s founder and CEO, Deepinder Goyal, will not be allowed to participate as an investor in the new season. Sources familiar with the matter have revealed that this clause reflects the growing rivalry between Swiggy and Zomato, particularly in the competitive food and grocery delivery markets.
Over the years, Swiggy and Zomato have been locked in a race to outdo one another. Once nearly equal in market share, Zomato has surged ahead, outperforming Swiggy in both food and grocery delivery sectors.
Swiggy’s Focus on Strengthening Its Brand
Swiggy’s aggressive brand-building strategy has come to the forefront, with the company emphasizing its plans to expand its reach and customer base. In its updated draft prospectus filed with the Securities and Exchange Board of India (SEBI), Swiggy revealed that ₹950 crore out of the ₹3,750 crore expected to be raised through its upcoming IPO will be allocated for brand marketing and awareness campaigns.
This push for increased visibility comes as Swiggy aims to expand its services to a wider audience and make its brand more recognizable across India. However, neither Swiggy, Zomato, nor Sony Television has provided any comments on the matter.
Deepinder Goyal’s Shark Tank Debut and Praise
In Shark Tank India’s third season, Zomato’s CEO, Deepinder Goyal, made his debut as an investor (shark). His sharp, insightful questions and candid interactions with the startup founders garnered significant praise from viewers and industry experts alike. His presence brought a fresh perspective to the show, and many had anticipated his return in the upcoming season.
The exclusion of Goyal from season four, as a result of Swiggy’s condition, underscores the intense competition between the two companies. Swiggy’s demand reflects its intent to minimize its rival’s influence on one of India’s top entrepreneurial shows.
Zomato’s IPO Success and Swiggy’s Upcoming Public Offering
One of the speculated reasons behind Swiggy’s decision could be the looming IPO battle. Zomato successfully launched its IPO around three years ago, which saw significant stock market success. In recent weeks, Zomato’s stock prices have seen a sharp rise, pushing its market capitalization close to $30 billion. This impressive performance has kept investors’ eyes on Swiggy’s anticipated IPO, which is expected to draw considerable interest.
Swiggy filed its first draft prospectus with SEBI on September 26 and later filed an updated draft. The company plans to issue new shares worth ₹3,750 crore. Additionally, Swiggy’s IPO will include an Offer for Sale (OFS) of 18.53 crore shares. Assuming a price of ₹350 per share, the total value of the OFS could reach ₹6,500 crore. During Swiggy’s Extraordinary General Meeting (EGM) held on October 3, shareholders approved a proposal to increase the size of the primary issue to ₹5,000 crore.
What’s Next for Swiggy and Zomato?
As Swiggy ramps up its brand visibility through strategic moves like sponsoring Shark Tank, and with its IPO just around the corner, the competition between Swiggy and Zomato is only expected to heat up further. While Zomato’s successful IPO and growing market presence have strengthened its position, Swiggy’s efforts to capture more customers and enhance its brand could tilt the scales in its favor in the coming months.
The fourth season of Shark Tank India will continue to feature top investors, including Anupam Mittal from People Group, Aman Gupta from BoAt Lifestyle, Namita Thapar from Emcure Pharma, Peyush Bansal from Lenskart, and Ritesh Agarwal from OYO. However, the absence of Deepinder Goyal due to Swiggy’s condition marks a significant shift in the dynamics of the popular show.
As Swiggy and Zomato gear up for more competition in both the delivery and IPO spaces, their rivalry is set to become even more intense, with both companies striving for dominance in India’s highly competitive and rapidly growing markets.
