Swiggy, the Indian food delivery giant, has seen its stock fall below its initial public offering (IPO) price of ₹390 ($4.69), dropping as low as ₹374.80 ($4.29) on Thursday. This decline comes in the wake of disappointing quarterly results, which revealed a loss of market share for its quick-commerce division, Instamart.
The company’s market capitalization has now shrunk to $9.75 billion, well below its 2022 valuation of $10.7 billion. Despite ramping up store expansion, adding 96 dark stores to reach a total of 705, Swiggy is struggling to keep up with rivals like Zomato and Zepto. Zomato’s quick-commerce unit, Blinkit, reported a gross order value of ₹78 billion ($890 million), almost double that of Instamart’s ₹39.1 billion ($446 million).
Analysts from Bank of America predict ongoing fierce competition in the quick-commerce sector until mid-2025. While Swiggy has cash reserves of ₹82 billion ($936 million), it’s significantly less than Zomato’s ₹190 billion ($2.2 billion), making the competitive landscape even tougher.
