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Swiggy and Zepto eye Rs 14,000 crore public raise as Blinkit leads market
This scramble for capital is driven by the highly competitive, cash-guzzling nature of the sector, which is projected to nearly triple in size from a Gross Order Value (GOV) of ₹64,000 crore in FY25 to ₹2 lakh crore by FY28.
Swiggy is pitching a Qualified Institutional Placement (QIP) of up to ₹10,000 crore. After this raise and the sale of its Rapido stake, Swiggy's total cash holdings are projected to be around ₹17,000 crore.
The quick commerce market is entering a high-stakes funding battle as rivals Swiggy and Zepto plan public market fundraises totaling approximately ₹14,000 crore, as per reports, to build war chests and intensify the fight for market share. This scramble for capital is driven by the highly competitive, cash-guzzling nature of the sector, which is projected to nearly triple in size from a Gross Order Value (GOV) of ₹64,000 crore in FY25 to ₹2 lakh crore by FY28.
Blinkit, the quick commerce arm of Eternal, remains the clear market leader, holding over 50% market share as of a September BofA research note. Blinkit maintains a commanding lead in cash reserves, sitting on ₹18,314 crore as of September 30.
The fight for the number two spot is heating up:
Swiggy is pitching a Qualified Institutional Placement (QIP) of up to ₹10,000 crore. After this raise and the sale of its Rapido stake, Swiggy's total cash holdings are projected to be around ₹17,000 crore.
Zepto is preparing a confidential filing to raise around ₹4,000 crore. Zepto currently has approximately ₹7,000 crore in cash reserves.
Cash Burn Escalates in Tussle for Second Spot The intense rivalry between Swiggy's Instamart and Zepto for the second position has led to a significant increase in cash burn across the industry.
Swiggy's consolidated quarterly cash burn stood at ₹740 crore for the September quarter.
Eternal's (Blinkit) quarterly cash burn was ₹543 crore.
Zepto's monthly cash burn has reportedly increased to upwards of ₹500 crore, with a gross order value (GOV) of around ₹2,000 crore.
While Swiggy's share price closed 1.4% lower at ₹386.90 on Thursday, falling below its IPO price of ₹390, the company has guided for Instamart to break even on a contribution basis by June 2026. Blinkit, conversely, has indicated it will continue to prioritize growth over improving short-term margins, citing its strong balance sheet.
Net Average Order Value (AOV) in the sector currently sits in the ₹520-530 range. Analysts believe this AOV will only increase marginally, projecting growth of 2-3% per year as companies prioritize order frequency over ticket size.
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