Dining-out emerges as new growth battleground for Swiggy, Eternal

As competition in food delivery and quick commerce intensifies, Swiggy and Eternal are increasingly betting on dining-out and going-out services as the next growth frontier, with both companies reporting strong momentum in the segment over the past year.

Swiggy’s Dineout business and Eternal’s District platform have emerged as key pillars of their broader strategy to capture a larger share of consumers’ discretionary spending beyond food orders. The segment includes restaurant reservations, dining deals, payments, events and entertainment experiences.

According to Swiggy’s latest quarterly disclosures, Dineout’s gross order value (GOV) grew 43 per cent year-on-year to ₹1,245 crore in the March quarter. The company said the business has remained sustainably profitable while expanding its network to more than 52,000 restaurant partners.

Eternal, which operates food delivery platform Zomato, reported that its going-out business recorded 42 per cent growth in net order value (NOV) in FY26. The company has been integrating restaurant bookings, ticketing and local experiences under its District app, positioning it as a broader urban lifestyle platform.

The strong growth underscores a shift in strategy among food-tech companies as the core food delivery market matures and quick commerce absorbs a growing share of investments. Industry executives estimate that dining-out and going-out services now contribute roughly 10-15 per cent of the platforms’ overall business, compared with low single digits a few years ago.

For restaurants, the segment has become an increasingly important customer acquisition channel. Platforms offer dining discounts, loyalty programmes and payment-linked rewards to attract users, while restaurants gain access to a larger customer base and data-driven marketing tools.

However, the market remains intensely competitive. Eternal’s District has been aggressively expanding across categories, including dining, movies, live events and experiences. Swiggy, meanwhile, is focusing on deepening restaurant partnerships and improving monetisation through advertising and merchant services.

Industry observers say the opportunity extends beyond restaurant reservations. India’s organised dining-out market remains significantly underpenetrated relative to food delivery, leaving room for platforms to build high-frequency consumer engagement around offline experiences.

The growing traction also reflects a broader recovery in discretionary spending among urban consumers, who are increasingly willing to spend on experiences and social outings. As food delivery growth normalises and quick commerce competition intensifies, dining-out is expected to play a larger role in the growth narratives of both Swiggy and Eternal over the coming years.