Swiggy vs Zomato – Food Delivery Update (Q4 FY25) and Who is Winning?

Let’s break it down in a super simple way. Swiggy is Catching Up: - Swiggy’s food delivery business is improving. - Its market share (the % of orders it handles) went up to 43% (from 42% last quarter). Zomato still leads with 57% market share, but Swiggy is trying to close the gap. How is Swiggy Earning More? - Adjusted EBITDA margin (a measure of how efficiently a company is operating) improved to 2.9% in Q4, up from just 0.5% a year ago. - Contribution margin (profit from each order after costs) rose to 7.8% of GOV, better than 6.7% a year ago. GOV = Gross Order Value Total value of all orders. Swiggy's GOV = ₹7,347 Cr Zomato's GOV = ₹9,778 Cr But There's a Catch 🔻 - Swiggy invested heavily in quick commerce (fast delivery of groceries etc.). - Because of this, Swiggy posted a net loss of ₹1,081 Cr in Q4, almost double last year’s loss. - Full-year loss: ₹3,117 Cr (vs ₹2,350 Cr in FY24) Revenue is Still Growing: - Swiggy's Q4 revenue = ₹4,410 Cr, up 45% YoY - Full-year revenue = ₹15,227 Cr, up 35% How Did Zomato Do? - Zomato made a small profit of ₹39 Cr in Q4 (but down from last year). - Full-year profit = ₹527 Cr, up 50% YoY. - Revenue in Q4 = ₹5,833 Cr (up 64% YoY) - Full-year revenue = ₹20,243 Cr (up 67%) In Summary: - Swiggy is growing fast in food delivery and getting more efficient. - Zomato is still the leader, but Swiggy is making a comeback. - Both companies are growing revenues quickly. - Swiggy is spending a lot on quick commerce, which is increasing its losses. The food delivery war is heating up. More competition means better service for customers.