Whalesbook
Swiggy Boosts Dining Business with Bajpai at Helm
Swiggy named Swapnil Bajpai CEO for its combined Dineout and Scenes operations, a strategic step to merge its less delivery-dependent, higher-profit businesses. Bajpai, a Swiggy veteran in sales, monetization, and leadership, will drive growth in dining discovery, reservations, bill payments, and curated experiences.
Combining these units under one leader aims to streamline operations and increase their market impact, as Swiggy diversifies revenue beyond food delivery. This follows Swiggy's 2022 acquisition of Dineout and signals its integration from a founder-led unit into a core, strategically managed division. This aligns with a trend where platforms expand into related, more profitable services.
Competitive Playbook: Swiggy vs. Zomato
India's food tech sector sees intense competition, with Swiggy and rival Zomato constantly updating their strategies. Zomato leads food delivery with a 55-58% market share versus Swiggy's 42-45% and has aggressively diversified.
In Q2 FY25, Zomato's food delivery GOV was ₹9,690 crore (35% ahead of Swiggy's ₹7,191 crore). Zomato's Blinkit quick commerce had a GOV of ₹6,132 crore, significantly topping Swiggy's Instamart. Zomato's 'Going Out' segment uses events and pay-at-restaurant options to boost ad revenue and customer value. Its advertising network also plays a key role, with restaurants paying for prime platform placement.
As of April 30, 2026, Zomato's market cap was ₹2,38,171 crore. Analysts generally remain positive, citing Blinkit's growth.
Valuation and Market Trends
Swiggy's push happens as India's food tech and service markets show strong growth. India's food tech market is projected to reach $27.3 billion by 2030 (14% CAGR), with the food service market nearing $138.2 billion by 2034.
Consumer dining spending has surged, reaching ₹1,056 crore daily in H1 FY26, boosted by a 34% rise in UPI transactions. Consumers increasingly favor 'experiential dining' and health-conscious choices.
Zomato's valuation, however, presents a complex picture. Its fluctuating P/E ratio (89.8 to over 650x) suggests high investor expectations for future earnings, potentially leading to lofty valuations. For example, in Q3 FY26, Zomato reported ₹102 crore net profit on ₹16,315 crore revenue.
Key Risks
Despite Swiggy's consolidation, significant challenges remain. Zomato's lead in food delivery market share and quick commerce scale remains a significant challenge.
Swiggy is still operating at a net loss, with ₹799 crore in Q3 FY25 losses for its quick commerce segment, seen as a long-term investment. Integrating Dineout and Scenes carries risks, including merging operations and ensuring consistent service quality.
High P/E ratios in the sector, especially for Zomato, indicate investor sentiment relies heavily on aggressive future growth, making it vulnerable to market shifts or execution errors. Swiggy's path to profitability is crucial for its long-term stability and investor confidence.
Future Outlook
Under Bajpai, Swiggy's Dineout and Scenes will likely focus on boosting revenue via commissions, advertising, and prepaid deals, using lower logistics costs than food delivery. Success will depend on capturing more of the growing 'going out' market and contributing to Swiggy's profitability.
Meanwhile, Zomato is expected to continue growing, fueled by its diverse offerings and expansions, with analysts generally positive on its stock. This ongoing rivalry between the two giants is likely to drive innovation in customer engagement, delivery, and unique dining experiences.