Karan Taurani , Senior VP, Elara Securities , says unless quick commerce does not see a scale up in terms of better AOV, in terms of higher take rates or in terms of sharp reduction in losses, we will not see Swiggy move up from here on and basis the discount, basis the track record, execution, and historical performance, we would prefer Zomato over Swiggy at current market price.
The Swiggy listing was at around Rs 420. It is the second largest e-commerce and food delivery player that made its debut today. What do you make of its listing today?
Karan Taurani: The listing has been largely in line. The valuations were quite fair if you compare it to the larger peer and market leader Zomato. In terms of metrics, even in terms of the Q1 performance, we have not seen any big change. If you look at the revenue growth, the scale difference on the food business side remains at about 25 to 26 odd percent. On the quick commerce side, the gap is more than 40-45%. So, there has been no change in terms of Q1 FY25 performance for now.
The only change has been in terms of Zomato food business reporting a better profitability. They were at about last year’s break-even in FY24, which has potentially moved EBITDA as a percentage of GOV. Even the losses in the quick commerce side in Q1, have not seen any kind of c
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