Strategic acquisitions, operational efficiency, and dominance in rapid commerce propelled Zomato's GOV, revenue, and profitability above Swiggy's in Q2 FY25.
The competition is still fierce in the quick commerce and food delivery industries. Swiggy, a recently listed company, released its first quarterly performance report for Q2 FY25 following its IPO. Let's examine the Q2 FY25 results of Swiggy and Zomato, its immediate rival. Both businesses displayed noteworthy advancements. A summary of their performance may be found here.Who delivered more in terms of gross order value (GOV)?
₹17,670 crore on Zomato
₹11,306 crore for Swiggy
With a significantly greater GOV, Zomato easily outperformed Swiggy. Zomato's acquisition of Paytm's entertainment ticketing division, which increased their GOV numbers, is a significant contributing element to this.
Excluding this, Zomato reported a YoY rise of 53%, whereas Swiggy recorded a YoY growth of 29.9% when compared on a like-for-like GOV growth basis. This demonstrates Zomato's broader commercial scope.
GOV's main business is food delivery.
In Q2 of FY25, Zomato's gross revenue from its meal delivery service was ₹9,690 crore (+5% QoQ), whereas Swiggy's was ₹7,191 crore (+5% QoQ).
Zomato has a greater presence in the core food delivery market, as evidenced by its GOV in this sector, which is almost 35% higher than Swiggy's.
Fast trade
Zomato is the market leader in rapid commerce as well. In comparison to Swiggy's ₹3,382 crore (+24.1% QoQ) for Q2 FY25, their GOV for the segment was ₹6,132 crore (+25% QoQ).
Zomato's dominance in the rapid commerce industry is demonstrated by the fact that its GOV is almost 81% higher than Swiggy's.
Value of average order (AOV)
₹499 for Swiggy, up 7.7% year over year from ₹463 in Q2 of FY24
₹660 on Zomato, up 8.7% year over year from ₹607 in Q2 of FY24
Indicating higher customer spending per order, Zomato's AOV increased more quickly and stayed higher than Swiggy's.
Comparison of adjusted revenue
Zomato: ₹5,127 crore (increase of 58% year over year)
Swiggy: ₹3,873 crore (growth of 26.5% year over year)
Zomato leads in adjusted revenue, which is indicative of its greater GOV. Zomato's growth rate is over double that of Swiggy, suggesting that it has a stronger ability to turn orders into income.
One important differentiator is profitability.
Adjusted EBITDA for Zomato: ₹330 crore
Adjusted EBITDA for Swiggy: ₹(-)341 crore
Swiggy is still losing money, whereas Zomato has turned a profit. Spending excessively on its rapid commerce division, Instamart, is the main cause of Swiggy's losses. On the other hand, Zomato stated that, at the adjusted EBITDA level, their rapid commerce segment is almost breakeven.
₹11,306 crore for Swiggy
With a significantly greater GOV, Zomato easily outperformed Swiggy. Zomato's acquisition of Paytm's entertainment ticketing division, which increased their GOV numbers, is a significant contributing element to this.
Excluding this, Zomato reported a YoY rise of 53%, whereas Swiggy recorded a YoY growth of 29.9% when compared on a like-for-like GOV growth basis. This demonstrates Zomato's broader commercial scope.
GOV's main business is food delivery.
In Q2 of FY25, Zomato's gross revenue from its meal delivery service was ₹9,690 crore (+5% QoQ), whereas Swiggy's was ₹7,191 crore (+5% QoQ).
Zomato has a greater presence in the core food delivery market, as evidenced by its GOV in this sector, which is almost 35% higher than Swiggy's.
Fast trade
Zomato is the market leader in rapid commerce as well. In comparison to Swiggy's ₹3,382 crore (+24.1% QoQ) for Q2 FY25, their GOV for the segment was ₹6,132 crore (+25% QoQ).
Zomato's dominance in the rapid commerce industry is demonstrated by the fact that its GOV is almost 81% higher than Swiggy's.
Value of average order (AOV)
₹499 for Swiggy, up 7.7% year over year from ₹463 in Q2 of FY24
₹660 on Zomato, up 8.7% year over year from ₹607 in Q2 of FY24
Indicating higher customer spending per order, Zomato's AOV increased more quickly and stayed higher than Swiggy's.
Comparison of adjusted revenue
Zomato: ₹5,127 crore (increase of 58% year over year)
Swiggy: ₹3,873 crore (growth of 26.5% year over year)
Zomato leads in adjusted revenue, which is indicative of its greater GOV. Zomato's growth rate is over double that of Swiggy, suggesting that it has a stronger ability to turn orders into income.
One important differentiator is profitability.
Adjusted EBITDA for Zomato: ₹330 crore
Adjusted EBITDA for Swiggy: ₹(-)341 crore
Swiggy is still losing money, whereas Zomato has turned a profit. Spending excessively on its rapid commerce division, Instamart, is the main cause of Swiggy's losses. On the other hand, Zomato stated that, at the adjusted EBITDA level, their rapid commerce segment is almost breakeven.
Performance of the Bottom Line
In terms of net profitability, Swiggy lost ₹626 crore in Q2 FY25, whereas Zomato posted a profit of ₹176 crore. However, Swiggy's net loss decreased from ₹657 crore in Q2FY24 on a year-over-year basis. It has, however, somewhat increased from the June quarter's net loss of ₹611 crore.
Important Points
Zomato's GOV development was significantly aided by its acquisition of Paytm's entertainment ticketing division.
Swiggy's profitability is still impacted by Instamart. It will be crucial to monitor measures such as order contribution margin and customer acquisition cost (CAC).
Zomato has a considerable edge over Swiggy, with an average order value that is 32% greater.
In terms of net profitability, Swiggy lost ₹626 crore in Q2 FY25, whereas Zomato posted a profit of ₹176 crore. However, Swiggy's net loss decreased from ₹657 crore in Q2FY24 on a year-over-year basis. It has, however, somewhat increased from the June quarter's net loss of ₹611 crore.
Important Points
Zomato's GOV development was significantly aided by its acquisition of Paytm's entertainment ticketing division.
Swiggy's profitability is still impacted by Instamart. It will be crucial to monitor measures such as order contribution margin and customer acquisition cost (CAC).
Zomato has a considerable edge over Swiggy, with an average order value that is 32% greater.
In conclusion
Zomato's solid business model and operational efficiency are demonstrated by its current leadership in important metrics like GOV, revenue, and profitability. Despite its declining profitability, Swiggy continues to show high levels of consumer engagement and speedy commerce growth.
Both businesses must concentrate on improving client experiences, controlling expenses, and honing their business plans as the rivalry heats up in order to maintain growth in this fiercely competitive market.
Zomato's solid business model and operational efficiency are demonstrated by its current leadership in important metrics like GOV, revenue, and profitability. Despite its declining profitability, Swiggy continues to show high levels of consumer engagement and speedy commerce growth.
Both businesses must concentrate on improving client experiences, controlling expenses, and honing their business plans as the rivalry heats up in order to maintain growth in this fiercely competitive market.
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