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Brokerages including Emkay and CLSA continue to bet big on Zomato over Swiggy banking on better performance by the former’s quick commerce unit as compared to its unlisted rival. 

“Zomato’s higher growth has been aided by the superior performance of its quick commerce,” cited EMkay research. 

Prosus, which holds a 32.6% stake in Swiggy, recently reported that Swiggy’s gross order value (GOV) grew 26% year-on-year (YoY) in CY23. The note also mentioned that IPO-bound foodtech unicorn reported a lower revenue growth rate of 24% YoY, contrasting with Zomato’s adjusted revenue growth of 55.9% YoY during the same period.

“Swiggy’s overall GOV growth stood at 26% YoY for FY24. In comparison, Zomato’s food delivery and quick commerce verticals combined grew by 36% YoY in FY24,” CLSA stated in a research note. 

According to the note, Swiggy’s trading losses narrowed to $158 million during FY24 while Zomato logged a positive EBITDA of about $5 million during the same period. 

However, Prosus remained bullish on Swiggy, citing improvement in operational leverage in the company as it continues to focus on profitability, with additional revenue streams of restaurant advertising and platform fees. Prosus expects to see growth aided by increased penetration of Swiggy’s quick commerce business, higher order value, and organic customer growth. 

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Its rival Zomato is also ramping up its quick commerce offerings and plans to increase the number of stores to 1,000 by March 2025. It also expects the number of monthly transacting users (MTUs) on Blinkit to cross its parent’s figure in the near future. 

Also, Blinkit achieved a positive adjusted EBITDA in the quarter ended March 2024, the Deepinder Goyal-led company noted in its quarterly results.