After rival Zomato enter market with good IPO, for long time Swiggy was eyeing to enter the market but not able to do due to shareholder approval issue. But now it seems that the ball in now in Swiggy’s court. If all goes well then based on the reports Swiggy will going to enter the market with a valuation of $15 billion. Zomato where as has given multi bagger return to its investor.
Based on the reports it has been said that Swiggy grocery business is in heavy loss but the food delivery business is in profit. So it is been speculated that the money which will come from market will go into the grocery business so that at some point of time it become profitable.
Also Zomato recently based on the reports, it has been stated that they are going to acquire One97 Communication owned-Paytm’s entertainment and ticketing business for Rs 2,048 crore. Now they are entering into the entertainment and ticketing business which will add additional revenue to their portfolio other than food business.
In respect grocery business of Zomato is concerned, Blinket is now the market leader for the same doing good amount of business than Zomato.
In terms of swiggy is concerned, they are getting huge competition from rival Zomato and also from Flipkart and Amazon in their Grocery domain which was in loss till now. So this money will have a boost for the swiggy if they are going to collect the expected figure from the investors and giving back the investor in two fold what zomato has done with their investor.
