News Summary

Swiggy, the Indian food delivery giant, has seen its stock fall below its IPO price and 2022 valuation due to increasing competition and mounting losses in the quick-commerce sector. The company’s shares dropped to as low as ₹374.80 ($4.29), below its November IPO price of ₹390, before slightly recovering. The decline in stock price follows Swiggy’s quarterly results, which highlighted a loss in market share for its quick-commerce business, Instamart. Swiggy’s competitors, such as Zomato’s Blinkit and Zepto, have shown stronger performance with higher gross order values. Despite adding 96 dark stores, Swiggy was outpaced by Blinkit’s addition of 216 stores. Analysts expect the competition to persist through mid-2025, as major players have substantial financial backing allowing for sustained marketing spend and expansion. Swiggy’s cash reserves stand at ₹82 billion ($936 million), less than half of Zomato’s ₹190 billion ($2.2 billion).