How Swiggy can overtake Zomato

How Swiggy can leverage over Zomato from now onwards?

  

In few days Zomato will be a listed entity, this is a the will indirectly help Swiggy to take on Zomato.
Till now both were at same level of competition, enjoing same freedom in terms of decions, discounts and compliance matters etc but Post the listing of Zomato the scene will be different.

A breaf look at current position of Swiggy and Zomato,

For FY20, Swiggy’s total income stood at INR 2,956 Cr, as compared to Zomato’s total revenue of INR 2,486 Cr

For FY20, Swiggy’s total income stood at INR 3,909 Cr, as compared to Zomato’s total revenue of INR 2,451 Cr

Swiggy is operating in 523 cities, whereas Zomato operates in 526

Swiggy's valuation $5 bln, whereas Zomato's valuation $5.4 bln(post listing around $8.1 bln)

-After listing Zomato will be having a lot of restrictions on Fund raising, decision making, consultation before decision finalization etc.
-Various compliance requirements like LODR,SEBI,FEMA etc which will restrict its decisions regarding funding and new preferrential issue and may more.
-Promotor's will have to get shareholders nod before any decision.
-Its highly difficult to cash burn in terms of discounts promotions.

-This will indirectly benefit the Swiggy, it will continue to engage in aggressive promotions and funding.
-Now Venture funds would love to invests more in Swiggy (which already pioneered by soft bank) which helps it to expand rapidly.
-VC's will get better returns from Swiggy when it lists than from what they are now getting from Zomoto.
-Recently Swiggy raised $1.25 bln from Softbank which brings its valuation almost equal to Zomato's post listing valuation.
-Both companies should have better plans in terms of Unit economics.

Swiggy should delay for at least 2 years if its planning for IPO as it can analyse from Zomato's post listing activity and it will get more VC funds to continue for some more time.
Now its IPO spree in india, as every company which is launching its IPO is getting a good response irrespective of its fundaments.