The announcement by Deepinder Goyal, CEO of Zomato, regarding his exclusion from the fourth season of Shark Tank India has sparked discussions about the competitive dynamics between India’s two largest food delivery platforms—Zomato and Swiggy. Goyal’s decision not to return as a “Shark” on the show is reportedly due to Swiggy, Zomato’s biggest rival, securing the sponsorship for the upcoming season. As part of this sponsorship deal, Swiggy allegedly insisted on Goyal’s removal from the show.
Background: Deepinder Goyal and Shark Tank India
Deepinder Goyal, who co-founded Zomato in 2008, has been an influential figure in the Indian startup ecosystem. His participation as a “Shark” on Shark Tank India allowed him to connect with budding entrepreneurs, offer mentorship, and invest in innovative startups. His presence on the panel was not only a reflection of his entrepreneurial success but also provided valuable insights from the perspective of someone running a high-growth, publicly listed company in the competitive food-tech space.
Shark Tank India has grown in popularity, becoming a platform for aspiring entrepreneurs to pitch their ideas to some of the country’s top business leaders and secure funding. The show’s format involves entrepreneurs presenting their business models to a panel of investors (the “Sharks”) who decide whether to invest in their ventures. Goyal’s role as a judge was particularly significant, given his experience in scaling a tech-driven business in India’s fast-growing digital economy.
The Swiggy Sponsorship and Goyal’s Exit
In a fireside chat with Economic Times, Goyal disclosed that his departure from Shark Tank India was directly related to Swiggy’s sponsorship of the upcoming season. Swiggy, a dominant player in the Indian food delivery space and Zomato’s primary competitor, has taken over the sponsorship of the show, which has put Goyal’s participation at odds with the interests of the new sponsor.
Swiggy’s decision to insist on Goyal’s removal as a condition of their sponsorship underscores the intensity of the rivalry between the two companies. Both Zomato and Swiggy have been locked in a fierce competition for market share in the Indian food delivery industry for years. This competition has extended beyond their core business offerings, as both companies have ventured into adjacent markets such as grocery delivery, dining-out programs, and cloud kitchens. The high-profile sponsorship of Shark Tank India by Swiggy is, in many ways, an extension of their brand rivalry, and Goyal’s exit reflects the competitive maneuvering between the two giants.
Goyal’s comments during the chat highlighted the broader implications of Swiggy’s involvement in the show. He stated, “I would have loved to return as a Shark, but with Swiggy coming on board as a sponsor, there’s a conflict of interest. I understand the business rationale, but it’s disappointing nonetheless.”
Swiggy’s Strategy: Gaining Visibility Through Shark Tank India
Swiggy’s sponsorship of Shark Tank India serves as a strategic move to enhance its brand visibility and reach a wider audience, particularly among entrepreneurs and tech-savvy viewers. The show’s growing popularity provides Swiggy with an opportunity to align itself with India’s burgeoning startup culture, reinforcing its image as an innovative, entrepreneurial company.
For Swiggy, securing a partnership with the show and simultaneously sidelining Goyal—an important figure in the Indian startup scene—sends a strong signal about its dominance in the food-tech market. It’s a bold move that demonstrates how the competition between these two companies extends beyond their services and products to encompass brand positioning and influence in the public domain.
Zomato vs. Swiggy: The Ongoing Rivalry
Zomato and Swiggy have been in direct competition for several years, both aiming to capture a significant share of India’s growing online food delivery market. According to industry estimates, the two companies control nearly 90% of the market. Despite the similarities in their business models, their approaches to growth, customer engagement, and expansion have often differed.
Business Expansion: While both Zomato and Swiggy started as food delivery services, they have expanded into new verticals to differentiate themselves. Zomato has invested in hyperlocal grocery delivery, dining-out subscriptions (Zomato Gold), and international expansion, while Swiggy has focused on its grocery delivery platform, Swiggy Instamart, and developed Swiggy Genie for hyperlocal delivery services.
Financial Performance: Both companies have struggled with profitability due to the high costs associated with logistics, customer acquisition, and discounts. However, Zomato, being a publicly listed company, has more transparency in its financial performance. Zomato’s IPO in 2021 was a landmark event for India’s startup ecosystem, signaling the growing investor interest in tech-driven businesses. Swiggy remains privately held, although it has raised significant funding from global investors like SoftBank and Prosus.
Brand Positioning: The sponsorship deal with Shark Tank India is part of Swiggy’s larger strategy to enhance its brand appeal and differentiate itself from Zomato. Swiggy’s focus has been on branding itself as a customer-centric platform that offers convenience and quick delivery across multiple services, including groceries and parcel deliveries, in addition to food. Zomato, on the other hand, has leaned heavily into its image as a disruptor and innovator, with Goyal at the forefront of this narrative.
Public and Industry Reactions
The news of Goyal’s exclusion from Shark Tank India has led to varied reactions within the startup ecosystem. Many entrepreneurs and industry insiders have expressed disappointment, as Goyal’s presence on the panel provided a valuable perspective from someone who built a company that achieved both scale and public market success. Goyal has been a well-respected figure for his insights into the challenges faced by startups, particularly in competitive sectors like tech and food delivery.
At the same time, others have pointed out that Swiggy’s sponsorship reflects the commercial realities of such shows. For a sponsor like Swiggy, ensuring that its competitor’s CEO does not occupy a high-visibility role on a show it supports financially is a logical business decision. As Shark Tank India grows in viewership and commercial value, the influence of sponsors on the show’s content and participants will likely become more pronounced.
What’s Next for Deepinder Goyal?
While Goyal may not be returning to Shark Tank India, his focus remains on Zomato’s continued growth and profitability. Zomato has recently shifted its priorities toward achieving sustainable profitability after years of aggressive expansion. The company has been restructuring its business operations to streamline costs and focus on its core strengths, such as food delivery and dining-out programs.
Goyal’s role as a leader in the Indian startup ecosystem remains influential, and while he may no longer be on the Shark Tank panel, his insights and investments in the startup space are likely to continue through other avenues. His time on the show has already established him as a mentor to aspiring entrepreneurs, and he is likely to stay engaged with India’s entrepreneurial community.
Conclusion
The departure of Deepinder Goyal from Shark Tank India due to Swiggy’s sponsorship of the upcoming season reflects the intense rivalry between India’s two largest food delivery platforms. While Goyal’s exit may be seen as a loss for the show, it highlights how business decisions in competitive markets can extend beyond products and services to affect brand visibility and public influence. Swiggy’s strategic sponsorship and insistence on Goyal’s removal underscore the fierce competition in the food-tech industry and its broader implications for brand positioning.
As Goyal continues to lead Zomato in its journey toward profitability and growth, his absence from the popular reality show will mark a shift in the dynamics of Shark Tank India, but it will likely not diminish his influence in the Indian startup ecosystem.