Zomato welcomes Swiggy on Dalal Street; Swiggy says 'it's giving jai and veeru'

As Bengaluru-based Swiggy Limited listed on Indian stock exchanges—NSE and BSE—with 7.7% premium on the National Stock Exchange and 5.6% on the BSE, its main rival Zomato has welcomed the company with a warm tweet on Elon Musk-owned X (formerly Twitter).

"You and I... In this beautiful world," the Deepinder Goyal-led company wrote, tagging Swiggy's X page handle.

Swiggy responded by saying "It's giving Jai and Veeru." 

it’s giving jai and veeru 😎✨

— Swiggy Food (@Swiggy) November 13, 2024

Netizens reaction

Within hours, Zomato’s tweet had amassed nearly 1 million views, with users applauding the camaraderie between the two rival brands. “We’re all in for the best kind of deposit—Friendship!” HDFC Bank responded.

one day i will join you guys pic.twitter.com/tReVyVX876

— Sneha (@itspsneha) November 13, 2024

"hahaha....Brother hood🤟 Why don't you Merge both🤝. That will be great Monopoly with pricing power. No body will be able to enter this space then🤪,' a user wrote. 

That’s a great gesture, showing how competition should be treated 💯🔥🔥

Thanks @Zomato and congrats @Swiggy on a 7% return at your IPO listing 🙏

— Babu Mani 🇮🇳 (@Babu_Mani16) November 13, 2024

The IPO was open for subscription from November 6 to November 8. The shares were priced in the range of Rs 371-390 per share for the issue.

Swiggy IPO was a combination of fresh issue of 11.54 crore shares aggregating to Rs 4,499.00 crore and an offer for sale of 17.51 crore shares aggregating to Rs 6,828.43 crore.

Who leads in the market?

Despite Swiggy's successful IPO, it trails behind Zomato by four to six quarters in key metrics, according to research from Macquarie.

Zomato leads in both food delivery and quick commerce, boasting a monthly transacting user base of 20 million compared to Swiggy’s 14 million. 

Although both platforms have similar order frequency, Swiggy’s average order value is slightly higher than Zomato’s.

However, Swiggy's contribution margin remains lower, largely due to its higher discounting strategies aimed at customer acquisition and retention, which impact profitability.