Mumbai: Zomato share price gained over 2 percent in early trade on Tuesday as brokerages maintained their bullish view on the stock after its rival Swiggy’s performance improved in 2023, showing increased traction in the food delivery and quick commerce sector.
Prosus, the largest shareholder in Swiggy, reported continued momentum in Swiggy’s food delivery and quick commerce segments. Swiggy’s gross order value (GOV) grew 26 percent YoY in CY23, similar to Zomato’s 26 percent growth (in USD) during the same period.
Swiggy’s overall revenue growth of 24 percent YoY was also lower that Zomato’s adjusted revenue growth of 55.9 percent YoY. Swiggy’s trading losses reduced to $158 million during FY24 while Zomato reported a positive Ebitda of $5 million during FY24, brokerage firm CLSA noted.
According to Emkay Global Financial Service, Zomato’s higher growth has been aided by the superior performance of its newly launched quick commerce sector. Following their achievement of positive EBITDA in March 2023, Swiggy experienced an enhancement in their food delivery profitability due to increased revenue sources, reducing overall losses to $261 million in 2023 from $531 million in CY22.
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