Can live events become the next big growth driver for Swiggy, Zomato?

Swiggy eyes expansion in India's booming Rs 10,400 crore live events market, while Zomato has also entered the live events market through its recent acquisition of Paytm Insider

Fans of English rock band Coldplay were left distraught after tickets to their Mumbai show on ticket booking platform BookMyShow sold out within minutes of going live at 12 pm on September 22.

Within minutes, tickets reappeared on resale websites at exorbitant prices. This prompted cries of foul play from eager fans. The next day, BookMyShow CEO Ashish Hemjarani was summoned by the Mumbai Police’s Economic Offences Wing for questioning over alleged black marketing of tickets for the concerts.

While the ticket crisis left Coldplay fans disappointed, it also showcased the unprecedented demand for live experiences among Indian consumers, which, industry executives say, is at an all-time high.

The incident has also sparked a debate about BookMyShow’s monopoly in the market, and whether the episode has opened a window of opportunity for new entrants like Zomato and Swiggy in the live events space.

Industry estimates peg the Indian live events market at approximately Rs 10,400 crores (around $1.25 billion) as of 2024. It is expected to grow at a CAGR of 18-20 per cent over the next few years. Live ticketing, in particular, is currently valued at about Rs 4,000 crores (roughly $500 million) annually.

This market, therefore, may provide a lucrative opportunity for the food technology duo for their next phase of growth, after food delivery and quick commerce.

The opportunity

Bengaluru-based Swiggy entered this market in 2022 through its events booking vertical Steppinout. Aside from Steppinout, Swiggy also operates its restaurant discovery and booking platform Dineout, which together make up its out-of-home consumption vertical.

This business generated as much as Rs 45.8 crore in the June quarter of financial year 2024-25, up from Rs 31.1 crore in the year-ago period. It also made a loss of Rs 13.1 crore during the quarter, a 73 per cent year-on-year decline.

“Through (Steppinout) we can cover all aspects of an event – from conceptualisation, production, collaboration with ticketing platforms, venue booking and event execution, in collaboration with third-party service providers,” Swiggy stated in its recently filed draft red herring prospectus (DRHP).

“These (out-of-home) offerings extend our ability to enhance convenience for users outside their homes in respect of both food and entertainment,” the company added.

Event market leadership

Its Gurugram-based rival Zomato, which has been operating its going-out business for the past few years, has also made a splash in the live events market through its recent acquisition of Paytm Insider.

Following the Rs 2,048 crore acquisition, Zomato’s new vertical, called District, is now best positioned to take on BookMyShow, say analysts.

District, which is now the second largest entertainment ticketing platform in the country and is profitable, is pulled in a revenue of Rs 95 crore in Q1 FY25. Its gross order value (GOV) during the quarter stood at Rs 1,268 crore.

Zomato CEO Deepinder Goyal believes that District has the potential to be the company’s “third large business-to-consumer (B2C) business” after food delivery and Blinkit.

“In line with this thinking and our belief around building ‘super brands’ (Zomato, Blinkit) as opposed to ‘super apps’, we think that a new brand will help customers build association with going-out use cases and also allow us to build a loyalty program which drives higher retention,” said Goyal in a recent letter to shareholders.

All about execution

However, running a successful events business in India presents numerous challenges, from inadequate infrastructure and logistical hurdles to navigating permissions, developing a sustainable business model, and addressing price sensitivity across diverse regions.

“If you’re able to manage this properly, the payoff can be massive,” says Jatin Varma, founder, Comic Con India, known for organising large events.

“Most events are run on the sponsorship model, which is not an easy solution for everyone. The viability of the business model really depends on how well you can navigate these challenges and create a unique value proposition,” he says.

Swiggy and Zomato’s events businesses largely make money via revenue from the sale of tickets on various ticketing platforms – including their own, advertising revenue from brand partners, and fees for other business enablement services provided to restaurant partners and brand partners.

For Swiggy and Zomato, overcoming immediate challenges and rapidly scaling their businesses will hinge on effective execution and their ability to innovate with new use cases. However, this may prove to be a significant challenge.

Specialisation as differentiator

Live events firms, as per industry experts, do not offer much by way of differentiation. This is also the norm internationally, where the markets are typically cornered by one or two companies.

“The key to differentiation isn’t about competing head-on with these platforms, but rather in creating unique experiences that these platforms want to showcase,” says Varma.

For new players, the opportunity may lie in specialisation or in creating value-added services around the event experience. “It could be through better discovery algorithms, personalised recommendations, or enhanced on-ground experiences,” Varma adds.

Regardless, it is still early days for the food delivery duo in the live events market. According to experts, success in this space will not just be about technology or reach. It will depend on understanding the nuances of event organisation and the specific needs of different audience segments.