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Fast, but furious: Quick commerce concerns burn billions from Zomato, Swiggy market caps

YourStory

YourStory · 6m ago

Fast, but furious: Quick commerce concerns burn billions from Zomato, Swiggy market caps

Zomato and Swiggy, major players in food delivery, are aggressively investing in quick-commerce to fend off competitors like Zepto, Flipkart, and Amazon. Despite rapid expansion, including opening new dark stores and ramping up discounts, both companies are experiencing stock declines, raising investor concerns. Swiggy's shares have dropped 37% since early 2025, while Zomato's fell 22%. Slow growth in their core business segments is adding to these financial challenges as they navigate the competitive quick-commerce landscape.

Related News

Swiggy, Zomato shares extend fall as quick commerce burn weighs

Economic Times

Economic Times · 6m ago

Swiggy, Zomato shares extend fall as quick commerce burn weighs

Shares of Swiggy and Zomato have fallen due to challenges in the quick commerce sector. Swiggy's market capitalization dropped below $10 billion, while Zomato's valuation slipped under $23 billion. Increased competition and investments in dark stores are impacting profitability. Analysts note robust execution but warn of potential medium-term profitability risks due to competition. Swiggy's Q3 earnings were lower than expected, with concerns over widening losses and lagging quick commerce performance compared to Zomato.

Blinkit enters 10-minute food delivery space with Bistro app

Economic Times

Economic Times · 8m ago

Blinkit enters 10-minute food delivery space with Bistro app

Blinkit, owned by Zomato, has introduced a separate app called Bistro for 10-minute food delivery in Gurugram. The platform offers a range of snacks, meals, desserts, and beverages. The move follows the trend of quick commerce platforms expanding into ultra-fast food delivery. Zomato had initially experimented with 10-minute delivery but discontinued it. Competitors Swiggy and Zepto also offer similar services. While quick commerce is growing, food delivery still contributes the most to Zomato's revenue. Last month, Zomato raised funds to expand its quick commerce business.

Swiggy’s standalone app Snacc: Here’s all you need to know about it

Economic Times

Economic Times · 7m ago

Swiggy’s standalone app Snacc: Here’s all you need to know about it

Swiggy launched a standalone app, Snacc, for 10-minute food delivery, expanding its quick commerce offerings alongside Bolt. Competitors like Zomato, Blinkit, and Zepto are also active in this rapid delivery space. Snacc focuses on delivering fast food and drinks from nearby locations, while Bolt delivers from restaurants. The market is seeing growth, with Swiggy's Bolt contributing to 5% of overall delivery volumes, though concerns about profitability and sustainability persist.

Can Swiggy Replicate Zomato’s Success On The Bourses?

Inc42 · 10m ago

Can Swiggy Replicate Zomato’s Success On The Bourses?

- Swiggy's IPO is one of the most anticipated IPOs in the Indian startup ecosystem and public market. - Public market investors are attracted to Swiggy due to the company's potential in the food delivery and quick commerce sectors. - Swiggy's quick commerce business has shown significant growth, with a FY24 Gross Order Value (GOV) of INR 8,068.6 Cr, up over 57% YoY. - While a direct comparison between Swiggy and Zomato is necessary, investors see the potential in Swiggy's quick commerce business. - Investors should consider Swiggy and Zomato as startup investments, understanding that there may be ups and downs in terms of profitability. - Swiggy's unlisted shares are currently trading at INR 485-INR 515 in the grey market. However, concerns about high valuation and losses on the books remain.

Race to deliver fast intensifies: quick commerce firms burning Rs 1,500 crore a month

Economic Times

Economic Times · 6m ago

Race to deliver fast intensifies: quick commerce firms burning Rs 1,500 crore a month

Indian quick commerce firms are burning Rs 1,300-1,500 crore monthly, driven by aggressive competition. Major players like Zomato's Blinkit, Zepto, and Swiggy Instamart have raised substantial funds amid escalating expenses. This intense rivalry affects stock performance, with Zomato and Swiggy experiencing significant market value declines. Companies like Zepto aim to reduce cash burn ahead of planned IPOs. Increased investor scrutiny and growing competition from platforms like Amazon and Flipkart impact the sector's profitability outlook.

Betting on Swiggy and Zomato: Can India’s food delivery titans deliver?

Livemint

Livemint · 9m ago

Betting on Swiggy and Zomato: Can India’s food delivery titans deliver?

The Indian food delivery market is currently dominated by Swiggy and Zomato, with the two companies controlling nearly the entire sector. Swiggy recently had its much-anticipated IPO, but its stock performance has been lackluster compared to Zomato. Both companies are grappling with questions around growth, revenue potential, and profitability. The Indian food delivery market is on a strong growth trajectory, but achieving sustained profitability remains a challenge due to thin margins and high costs. Additionally, the emergence of quick commerce (Q-commerce) has become a hot topic, offering new opportunities and challenges in grocery delivery. Investors should closely monitor the performance of Swiggy and Zomato, considering the potential for long-term growth but also assessing the risks involved.

Food and grocery delivery companies cash in on subscriber base

Economic Times

Economic Times · 8m ago

Food and grocery delivery companies cash in on subscriber base

Zomato and Swiggy are leveraging their growing subscriber bases, driven by loyalty programs, to monetize their platforms. Zomato Gold and Swiggy One contribute significantly to order volumes, with millions of subscribers engaged. While driving sales growth, these programs impact margins due to discounts and free deliveries. To counteract, they're collaborating with brands for ad revenues and offering personalized benefits. Despite quick commerce growth, food delivery remains key for profitability amidst competition and cash burn challenges.

Blinkit gets Rs 1,500-crore cash boost from Zomato

Economic Times

Economic Times · 6m ago

Blinkit gets Rs 1,500-crore cash boost from Zomato

India's leading quick commerce platform, Blinkit, received a Rs 1,500 crore investment from parent company Zomato, totaling Rs 4,300 crore since its acquisition in August 2022. This infusion aids Blinkit's financial losses amid aggressive expansion and competition. Despite operational revenue covering needs, expansion costs cause high cash burn. Blinkit targets 2,000 dark stores by December 2025, ahead of competition like Swiggy and Zepto. Rapid expansion in the sector intensifies cash burn and financial losses for companies.

Swiggy steps up quick commerce investment to Rs 1,179 crore, eyes 741 dark stores

Economic Times

Economic Times · 10m ago

Swiggy steps up quick commerce investment to Rs 1,179 crore, eyes 741 dark stores

Swiggy is investing Rs 1,179 crore in its quick-commerce business, Swiggy Instamart, to expand its dark store network. The company plans to open more dark stores in cities where it already operates, as well as expand into new cities in the future. This investment comes as competition in the quick commerce sector increases, with rivals like Zomato-owned Blinkit and Zepto raising capital for growth. The quick commerce market in India is expected to reach $22 billion in gross merchandise value by 2027. Swiggy Instamart, Blinkit, and Zepto currently dominate the market with over 85% market share.

Buy Swiggy, Zomato shares as QC concerns overblown

Business Today

Business Today · 5m ago

Buy Swiggy, Zomato shares as QC concerns overblown

ICICI Securities suggests that concerns about competition in the quick commerce (QC) sector affecting Swiggy and Zomato are exaggerated. The market overlooks the positive growth in the food delivery sector. Food delivery has scaled profitably over the past two years. Tax cuts announced in the union budget for FY26 could benefit these companies, with potential long-term investment opportunities. Despite reduced marketing spending in quick commerce, maintaining valuations and securing fresh funding remains challenging.

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