Food and Beverage

As food delivery slows, can Dineout be Swiggy’s saviour?

Pranav Balakrishnan

April 23, 2025 | 12 Min Read

When Swiggy acquired Dineout in 2022, it inherited the latter’s dining and events business. But a sluggish integration, key executive exits, and a lack of focus amid IPO preparations have left Swiggy’s Dineout adrift of Zomato’s going-out business, District, even as India’s going-out market booms.

Key Takeaways

After a lengthy integration and significant leadership churn, Swiggy is doubling down on Dineout as India’s going-out market booms
However, Zomato has surged ahead in the dining-in and events space—District and Insider now clock Rs 2,495 crore in GOV, nearly 3X the GOV of Dineout
Swiggy’s dine-in play now includes in-app payments, table reservations, and restaurant ads. Its also rebranding its events business and repositioning it to complement dining-in
Despite claims of strong growth though, Swiggy faces stiff competition from Zomato and strong pushback from restaurants as it seeks a seat at the dining-in table

Out-of-home experiences are having a moment in India. International artists are filling venues like never before, and the restaurant, premium dining, and nightlife scenes are booming. From cocktail bars slinging exotic ingredients to new neighbourhoods in cities like Bengaluru and Noida teeming with novel venues, eating (and drinking) out is on the upswing.

Last month, international brokerage firm Macquarie said it remains cautious on both Swiggy and Zomato, citing concerns over slowing growth in food delivery and rising losses. Instead, the brokerage favoured stocks such as Devyani International and Westlife Foodworld—two major restaurant operators—on the expectation that dining in would be a new growth engine.

Swiggy and Eternal (formerly Zomato) have long since recognised these shifts in food consumption patterns. Citing a Redseer report, Swiggy’s IPO papers from last year estimated the online dining out market in India was valued at approximately $600 million in 2023 and would grow between 46%-53% annually between 2023 and 2028. This is far higher than the growth being recorded in food delivery, albeit from a far lower base.

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