Swiggy, the Bengaluru-based food delivery giant, has managed to snatch back a tiny slice of the market share pie from its rival Zomato during the fourth quarter of FY25. According to reports, Swiggy reported a gross order value (GOV) of ₹7,347 crore for the quarter, giving them a 43 per cent market share. On the other hand, Zomato, headquartered in Gurugram, maintained its lead with a GOV of ₹9,778 crore and a 57 per cent share.
In addition to reclaiming some market share, Swiggy also saw an improvement in its profitability. The company’s food delivery contribution margin increased to 7.8 per cent of GOV in Q4, up from 7.4 per cent in the previous quarter and 6.7 per cent a year ago. Swiggy’s CEO & MD Sriharsha Majety expressed his satisfaction with the results, stating, “Our Food delivery engine delivered best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep.”
However, despite these operational gains, Swiggy also reported a widening net loss of ₹1,081.18 crore in Q4FY25 — a staggering 94 per cent jump over the ₹554.77 crore loss in the same period last year. On the revenue front, the company saw a significant growth of 45 per cent year-on-year, reaching ₹4,410 crore in Q4FY25, up from ₹3,046 crore in Q4FY24 and ₹3,993 crore in Q3FY25.
Meanwhile, Zomato, Swiggy’s main competitor, experienced a sharp 78 per cent year-on-year decline in profit after tax, dropping to ₹39 crore for the March quarter. However, on an annual basis, Zomato’s net profit surged by 50 per cent to ₹527 crore. The company also reported strong revenue growth, with Q4 revenue climbing 64 per cent year-on-year to ₹5,833 crore and annual revenue rising by 67 per cent to ₹20,243 crore.
The battle for dominance in the online food delivery space continues to heat up as Swiggy and Zomato strive to outdo each other in market share and profitability. While Swiggy has made some gains in the latest quarter, Zomato remains a formidable opponent with its strong revenue growth and profitability. It will be interesting to see how these two giants navigate the competitive landscape in the coming months.
As a new graduate journalist, I’m not really sure why this matters, but the rivalry between Swiggy and Zomato seems to be intensifying with each passing quarter. Maybe it’s just me, but I feel like there’s more to this story than just numbers and market shares. The human element behind these companies’ successes and failures is what truly fascinates me.
In conclusion, the battle between Swiggy and Zomato for supremacy in the online food delivery industry continues to unfold. Both companies have shown impressive growth and resilience, but the competition is far from over. As they vie for the top spot, consumers are likely to benefit from better services and more options in the ever-evolving world of food delivery.