'You and I...In this beautiful world': Zomato lauds Swiggy IPO in viral post; gets this response

Indian food delivery and quick-commerce company Zomato on Wednesday congratulated rival Swiggy on its market debut after it listed on the National and Bombay Stock Exchanges (NSE, BSE) with a valuation of $11.3 billion.

"Congratulations @swiggy! Couldn't have asked for a better company to serve India with," Zomato CEO Deepinder Goyal posted on X.

Zomato’s official account also posted an illustration of two men, each in a t-shirt representing the rival companies, looking proudly at Swiggy’s listing. The caption read: “You and I... In this beautiful world.”

Swiggy said Zomato’s social media post was giving “jai and veeru” vibes, referring to the famous duo of Dharmendra and Amitabh Bachchan in the blockbuster film Sholay.

The social media exchange followed Swiggy’s modest stock market performance, with its shares surging nearly 14% in early trading — a boost attributed to investor confidence in India’s fast-growing food and grocery delivery sector.

Swiggy listed with a premium of nearly 8 per cent against the issue price of Rs 390 on Wednesday. Later, it surged 13.25 per cent to Rs 441.95.

Its $1.4 billion IPO, India’s second-largest this year, also came amid a general market downturn, making the company’s strong showing even more notable.

Swiggy and Zomato are riding a wave of new shoppers in India by offering so-called “quick commerce” grocery deliveries within 10 minutes, diversifying from their main food delivery businesses. Swiggy’s debut, however, pales in comparison with Zomato’s blockbuster listing in 2021. Zomato shares have more than tripled since then.

While Swiggy has narrowed its annual losses, it has yet to turn a profit, whereas Zomato posted a fiscal 2024 profit after a loss the previous year.

"We are expecting very solid growth for the next 3-5 years. We are expanding our geographical footprint, stores network for Instamart business," Swiggy CEO Sriharsha Majety said post the listing ceremony.

Majety further noted that the company will continue to invest in various categories.