SillyDonut
SillyDonut

Swiggy valuation $15B ++

Food tech market is 50B+ ( duopoly)

Most of my friends use swiggy for everything like food, groceries and dine out.

They say Zomato sucks in ui ux and 3rd grade restaurants are there at Zomato, swiggy is better at offers and quality restaurants.

Zomato peak stock value was 180inr, which makes it a 15B firm, by that logic swiggy can get even 20B ipo.

PS - Baron capital already raised swiggy valuation to 13.9B usd

What do u think guys?

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9mo ago
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FloatingWaffle
FloatingWaffle

It's regional.

Swiggy is King Bangalore

But I tried the same in Delhi and Mumbai, it doesn't even begin to match up to Zomato. Grapevine is skewed regionally to Bangalore😄 Careful interpreting the results

SillyDumpling
SillyDumpling

Companies do better where they are headquartered I guess?

Swiggy UI is clearer right? Like if you started with swiggy and switch to Zomato it feels off.

On the valuation side... Zomato is larger and if I recall correctly their losses are lower? So I would put swiggy at like 85-90% of Zomato valuation. This is like at a very high lvl without looking at the actual numbers.

SillyDonut
SillyDonut
TCS9mo

Yeah....swiggy is way better and their one subscription is also not confusing
In covid, Zomato overtook swiggy but now swiggy is in leading position.

SillyJellybean
SillyJellybean

Bangalore bias is towards swiggy, but Zomato is available in deeper pockets of India if I'm not wrong. Will be interesting to see how they compete further but it's still a growing market. Plenty for all.

SillyDonut
SillyDonut
TCS9mo

Yeah, eatsure and eatclub both doing 1000cr++ biz

DancingKoala
DancingKoala

I agree, Zomato is far deeper penetrated in my town and offer good restaurants on it, whereas Swiggy isn’t

DancingDonut
DancingDonut

As a Zomato shareholder, I track market shares of Zomato and Swiggy Zomato has 55-60% market share which means it's food delivery is 20-50% larger than Swiggy. And now Blinkit is bigger than Instamart. I am a swiggy user myself, because I get free delivery at lower AOV and better discount. But they are burning so much. That's why I always joke that the only sellside analyst that covers Swiggy is Burnstein. At whatever price Swiggy does an IPO, Zomato MCap will be 50% higher. Eagerly waiting for Swiggy IPO. On that day, Zomato will see step jump

SillyDonut
SillyDonut
TCS9mo

Can u break down no. Of Zomato? Like how much in food delivery and grocery and dineout?

DancingDonut
DancingDonut

Yes it's listed. It's all in the investor letter

PrancingNarwhal
PrancingNarwhal

Swiggy membership gives free delivery at 149 whereas zomato pro at 199, this locks me in automatically to swiggy and swiggy instamart and to its ecosystem, kind of disagree with Bangalore bias though I cannot talk about Delhi but going just by the pricing thing other cities are cheaper so the free delivery with the membership makes more sense in Swiggy in most cities.

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