Ad Revenue: The New Margin Engine for the Foodtech Industry

India’s food delivery sector is navigating a challenging phase with order growth slowing consistently, after years of rapid expansion. Incumbents like Zomato and Swiggy face stagnating take rates and sluggish GMV growth reflecting subdued consumer demand. However, margins have been on the rise supported by steep surge in cost-less advertising revenue. Both companies are increasingly leaning into this high-margin stream as core delivery volumes plateau. Advertising is gaining strategic significance, not just as a buffer against demand weakness, but as a scalable business opportunity. The sector is adapting to this shift, aiming for long-term monetization beyond food delivery.