- Swiggy’s stock fell as low as ₹374.80 ($4.29) on Thursday, dropping below its IPO price of ₹390 and reducing its market cap to $9.75 billion.
- Instamart’s quarterly gross order value was ₹39.1 billion ($446 million), significantly trailing Blinkit’s ₹78 billion ($890 million) and Zepto’s $3 billion.
Swiggy, India’s leading food delivery company, saw its stock fall below its IPO price and last private valuation amid increasing competition and mounting losses in quick commerce. Shares dropped to ₹374.80 ($4.29) on Thursday, slipping below the November IPO price of ₹390 and bringing the company’s market cap down to $9.75 billion. The stock later recovered slightly but remained near the IPO level.
The decline followed Swiggy’s latest quarterly results, which revealed that its quick-commerce unit, Instamart, lost market share despite aggressive store expansion and increased marketing efforts. The company faces stiff competition from rivals like Zomato’s Blinkit and Zepto, both of which have posted stronger growth in gross order value (GOV) over the same period.
Blinkit reported a GOV of ₹78 billion ($890 million) for the quarter, nearly double Instamart’s ₹39.1 billion ($446 million). On an annualized basis, Instamart’s $1.8 billion GOV lagged behind Blinkit’s $3.7 billion and Zepto’s $3 billion. Despite Swiggy’s expansion of 96 dark stores—bringing its total to 705—Blinkit added 216 stores, reaching 1,007 locations. Meanwhile, Zepto quietly scaled up to over 950 stores.
The competition is expected to intensify through mid-2025 as companies leverage significant financial backing to sustain high marketing spends and rapid expansion. Swiggy’s cash reserves of ₹82 billion ($936 million) are less than half of Zomato’s ₹190 billion ($2.2 billion). However, Swiggy managed to increase its quick-commerce average order value by 7% to ₹534 ($6.10) quarter-over-quarter.
Edited by Harshajit Sarmah
