Swiggy and Zepto Seek Major Market Funding as Competition in Quick Commerce Intensifies

India’s quick-commerce market is seeing renewed competition as Swiggy and Zepto prepare for significant fundraising efforts through public markets. 

The companies are aiming to secure additional capital to reinforce their positions in a fast-expanding but cost-heavy sector. 

Market share dynamics and rising operational expenses are shaping the strategies of both firms.

Funding Plans to Strengthen Market Position

Swiggy and Zepto are preparing to raise as much as ₹15,000 crore collectively as they work to strengthen their financial position in the quick-commerce segment. 

The move comes as both companies attempt to close the gap with Blinkit, which continues to hold a leadership position and maintains a considerable cash reserve.

Current Cash Positions and Market Share Landscape

Industry estimates suggest that Swiggy currently holds around ₹4,600 crore in cash, while Zepto has close to ₹7,000 crore. Research notes indicate Blinkit has more than half the market share, with the remaining share split between Instamart, Zepto, BigBasket, Flipkart Minutes and Amazon Now.

Swiggy is in discussions with investors for a qualified institutional placement of up to ₹10,000 crore, while Zepto is preparing a confidential filing to raise about ₹4,000 crore. 

If Swiggy’s fundraising and asset sales conclude as planned, its cash reserves are expected to increase significantly, as per news reports.

Order Volumes and Competitive Offers

The competition for order volumes has grown more visible in recent months. Zepto’s promotional offers and fee reductions have reportedly helped it gain traction, prompting Instamart to respond with similar measures.

Such steps, however, have placed pressure on cost structures across the sector.

Market observers note that data on order shares can influence investor decisions, especially at a time when several players are seeking capital.

With investors cautious about loss making models, companies are adjusting their communication and positioning accordingly.

Rising Cash Burn Across the Sector

Greater competition has contributed to increased cash burn. Swiggy’s consolidated cash burn in the September quarter was around ₹740 crore, while Blinkit recorded about ₹543 crore.

Zepto’s monthly cash burn has reportedly risen to over ₹500 crore, partially driven by growth in order volume.

Cash burn, which represents the rate at which firms spend reserves before achieving sustained positive cash flows, remains an important performance indicator in the sector.

Costs often rise due to customer acquisition, marketing and fulfilment requirements.

Stock Market Impact and Profitability Targets

Swiggy’s share price has been under pressure and currently trades slightly below its listing price.

The stock was trading 1.81% lower at ₹379.81 at 3:00 PM on the NSE.

The company has indicated that Instamart could reach contribution-level break-even by mid-2026.

Read More: Swiggy Introduces New Fee Structure for Partner Restaurants.

Conclusion

Swiggy and Zepto’s renewed fundraising efforts highlight the capital-intensive nature of the quick-commerce business and the need to maintain financial flexibility in a crowded market.

As companies prioritise different growth strategies while managing rising expenses, the sector continues to evolve without a clear indication of which approach will deliver long term stability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.