Indian online food delivery has been growing for the past 5 years and its revenue reached $27.47 billion in 2022. It is expected to reach around $70 billion by 2027. The two major companies in this Industry are Swiggy and Zomato. Both of them are constantly competing with each other for becoming market leaders, but as per the 2022 final, social results, Swiggy has outpaced zomato. With an aggressive discounting scheme, Swiggy was able to record revenue of Rs. 5,705 crores but this discounting scheme also increased costs and caused a loss of Rs. 3,629 crores. So it can be said that this scheme has been a boon and curse as well. On the other hand, Zomato generated revenues of Rs. 4,192 crores and made a loss of Rs.1,222 crore. When we talk about other sources of income than food delivery that's where Swiggy takes the edge over Zomato. Zomato's operating revenue depends 87% on its food delivery whereas for Swiggy it was 60%, that means Swiggy has well diversified its income source apart from food delivery and Zomato is lacking in that. Swiggy's sale of groceries, FMCG, and other items from the private label has increased 3.9 times to Rs. 2,123 crores in FY 2022. Zomato has bought Blinkit to give competition to Swiggy in this and the impact of that will show in the next fiscal year's financial results. When we talk about total expenses, Swiggy incurred Rs. 9,574 crores and Zomato incurred Rs. 6,205 crores as an expense. In the financial year 2022, Zomato has a slight edge over Swiggy in terms of market share. Zomato has 55% of the market share but when we see the financials Swiggy has surpassed Zomato in terms of overall scale through food deliveries and increased focus on grocery delivery. Swiggy is still larger in scale in terms of overall by 1,000 crores and even brokerage firm Bernstein believes that Swiggy is stronger than its listed peer in the grocery delivery business. This neck-to-neck competition between these two companies has been going on for quite some time now but for now, it seems Swiggy has edged over Zomato. Thank you.
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