Swiggy entered the market on November 13, increasing competition with Zomato in the food delivery sector.

Zomato has experienced significant growth since its listing in 2021, but now faces competition from Swiggy. While Zomato is currently a leader in key segments, Swiggy's lower valuation may give it an advantage in the long term.

Aditya Suresh, head of equity research at Macquarie Capital, believes that Swiggy is slightly behind Zomato in terms of food delivery and quick commerce. However, Swiggy's strategy to increase its monthly transacting users (MTUs) could help it catch up in the food delivery segment.

The quick commerce segment poses a bigger challenge, as competitors like Blinkit have already reached breakeven in adjusted EBITDA margin, while Instamart is still operating at a loss even at the contribution margin level.