Swiggy-Shark Tank deal: As Swiggy gears up for its upcoming IPO, the food and grocery delivery platform is reportedly close to securing a Rs 40-60 crore deal to sponsor the fourth season of Shark Tank India. The sponsorship deal comes with a key condition, Zomato Founder and CEO Deepinder Goyal must not return as an investor on the show, according to news reports.


This move highlights the intensifying rivalry between Swiggy and Zomato, two dominant players in the food and grocery delivery space. While the companies were neck-and-neck a few years ago, Zomato has pulled ahead in recent years, establishing a clear lead over Swiggy in both sectors. Swiggy’s bid to block Goyal underscores the fierce competition between the two firms, especially as Swiggy prepares for its public listing.


Swiggy's recent draft red herring prospectus (DRHP) reveals the company's plans to raise Rs 3,750 crore, with Rs 950 crore allocated for brand marketing and awareness campaigns aimed at expanding its customer base. The sponsorship deal with Shark Tank India, a popular entrepreneurial reality show airing on Sony Television, aligns with Swiggy's push to boost its brand presence ahead of the IPO.


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The fourth season of Shark Tank India is currently in production, with returning sharks including Anupam Mittal (People Group), Aman Gupta (boAt Lifestyle), Namita Thapar (Emcure Pharmaceuticals), Peyush Bansal (Lenskart), and Ritesh Agarwal (OYO). Deepinder Goyal made his debut as a Shark in Season 3, earning praise for his sharp insights and candid feedback. His presence on the show boosted his popularity, with social media buzzing over his interactions with entrepreneurs.


Swiggy's decision to block Goyal from returning could be linked to its upcoming IPO, as the competition between the two platforms heats up. Zomato, which went public three years ago, has seen significant success on the stock market, with its market cap nearing $30 billion in recent weeks.


Financially, Swiggy has shown strong growth, with its revenue increasing 36 per cent from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. The company also managed to reduce its losses by 44 per cent, from Rs 4,179 crore to Rs 2,350 crore, thanks to tighter expense controls. In contrast, Zomato reported a revenue of Rs 12,114 crore and a profit of Rs 351 crore in FY24. Meanwhile, Zomato saw even stronger growth, with a 74 per cent year-on-year increase in revenue, reaching Rs 4,206 crore, and generating a profit of Rs 253 crore in the same period.


As Swiggy readies itself for the public market, its marketing spend and rivalry with Zomato are expected to play key roles in shaping its trajectory.


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