Shares of Indian food delivery major Swiggy fell as much as 6.8% on Monday, heading for their worst session in more than a month, as slowing growth in its quick-commerce business and intensifying competition overshadowed a narrower fourth-quarter loss.
The stock was on track for its biggest intraday percentage drop since April 2.
Investor concerns centred on Swiggy losing quick-commerce market share to rival Eternal’s Blinkit, while competition from players such as Zepto, Amazon and Walmart-backed Flipkart remains intense, analysts said.
On Friday, Swiggy reported a consolidated loss of 8 billion rupees ($84.3 million) for the three months ended March 31, compared with 10.65 billion rupees in the previous quarter.
JPMorgan said growth at Swiggy‘s quick commerce arm Instamart lagged peers, with gross order value rising 68.8%, well below Blinkit’s 95.4% increase, suggesting continued market-share losses.
Morgan Stanley said while Swiggy‘s food delivery business recorded its strongest growth in years and margins improved, investor focus remains on execution and profitability in quick commerce amid aggressive competition.
Reuters
