Online food ordering app Swiggy has denied that it is talks with its biggest rival Zomato for a potential merger.
The statement comes a day after The Economic Times had published a report stating that Zomato and Swiggy are currently in talks for a potential stock-based merger.
In an e-mail statement, the Swiggy stated, “We have a razor-sharp focus in delivering a superior customer experience as we continue to grow as India’s largest food ordering and delivery company. We would not like to comment on baseless speculations such as this.”
The merger talks were held last week, but the deal is unlikely to proceed as the two companies have varied business inclinations and are in disagreement with the terms of the merger, the Economic Times had reported.
Started in 2014, Swiggy has raised close to USD 154 million so far, while Zomato which was founded in 2008 has raised close to USD 223 million.
Swiggy is bigger in the online ordering domain than Zomato which dominates in the restaurants listings space.
Zomato was more interested in an outright merger with a 4:1 share swap ratio instead of being a shareholder in Swiggy, the ET report said.
Swiggy is currently valued at an estimated USD 400 million after it raised USD 80 million from South African media giant Naspers in May.On the other hand, Gurgaon-based Zomato is currently valued a little above USD 960 million.