Zomato CEO Deepinder Goyal revealed on Saturday that he will not be returning as a judge for the fourth season of Shark Tank India. The entrepreneur said that his exit was a result of demand from Swiggy to come on as the show's sponsor.
Speaking at the ET Startup Awards 2024, Goyal said, “I unfortunately can't go back because Swiggy sponsored Shark Tank this time and kicked me out.” The move highlights the growing competition and rivalry between the food delivery firms, reported Mint.
Notably, Swiggy has almost finalised the agreement to sponsor the latest season of Shark Tank India. “Apparently, that's what I heard. They (Swiggy) said that this is the sponsorship, and DP (Deepinder Goyal) can't be on the show,” Goyal said.
The decision comes ahead of the proposed IPO worth Rs 5,000 crore lined up for Swiggy. The maiden issue comprises fresh equity shares worth Rs 3,750 crore and an offer-for-sale (OFS) of 185,286,265 equity shares by existing shareholders. The listing will also include segments for qualified institutional buyers (QIBs), anchor investors, and mutual funds.
The IPO follows three years after Zomato’s debut in the stock market. In this year itself, Zomato’s stock climbed to 125 per cent. Currently, the firm’s market capitalisation stands at $25 billion, more than double that of Swiggy’s estimated valuation of $10 billion.
Zomato earns a majority of its revenue from food delivery which accounts for 46.17 per cent of the overall share. Other income sources for the company include B2B Hyperpure business and Blinkit. The latter was acquired by Zomato and stands in direct competition with Swiggy’s Instamart.
Also Read : Boeing To Resume Contract Negotiations With Striking Union On Monday As Cash Struggles Pile Up
In the 2023-24 fiscal year (FY24), Swiggy reported an improvement in its performance and its losses narrowed down to Rs 2,350 crore. This growth was attributed to a boost in its food delivery and quick commerce businesses. Its revenue from operations touched Rs 11,247 crore in the fiscal year, climbing by 36 per cent against the year-ago period.