Akshata Sharma
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Zomato now holds a 56-57% market share in the food delivery market: Goldman Sachs
"At a 31% FY24-27 GOV CAGR, Zomato is the fastest growing food delivery company within our global coverage and also one with the highest margin profile," said Goldman Sachs.
As per the brokerage's calculation, Zomato's total GOV in 2023 was about 30-35% higher compared to that of Swiggy's.
For online grocery, it expects competition to be a consistent feature of the market, with no player likely having more than 20% market share. However, Zomato's scale is likely about 50% larger than its nearest competitor, the brokerage said.
Goldman Sachs also said that while Swiggy's adjusted EBITDA loss has narrowed in recent periods - it remains meaningfully higher than Zomato, which turned profitable starting in 2023.
"We believe Zomato being ahead of its peers on profitability will continue to provide it with the opportunity to further gain market share or improve profitability, or deliver on a mix of both," the brokerage added.
In fact, not only Goldman Sachs but several other Indian brokerages have also turned more bullish on Zomato after Swiggy's 2023 performance report.
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