In the rapid evolution landscape of online food delivery, fast trade and “spell” category, the parent company of Zomato, Eternal, shows clear signs of market leadership – at least on the financial dashboard. The company posted its consecutive profitable fourth, closing Fy5 with a net profit of 537 sterling books. On the other hand, Swiggy de l’Arc-Rival remains in the red, signaling an adjusted loss of 3,117 sterling books for the same period.
Despite a 40% increase in income, from 11,634 sterling books during the 2010 financial year to 16,333 sterling books in fiscal year 25, Swiggy continues to be increased by its aggressive betting bets on fast trade. High expenses for extensions on dark stores, the acquisition of customers and marketing have added considerably to its losses.
Zomato’s fast trade arm, Blinkit also reported an increase in losses in the fourth quarter, largely due to the expansion of the store. However, the company argued that it was part of a calculated growth thrust. “We added 294 new net stores in the fourth quarter 25, making it our highest addition of net stores in a single quarter,” said Albinder Dhindsa, CEO of Blinkit.
Meanwhile, Swiggy Instamart added 498 stores throughout the exercise, almost half of its network with less than a year. According to society, the average age of these stores is less than four months, which causes underused fixed costs. High incentives to customers and expansion in new geographies have still set the net profit.
To develop its non-proclaimed offers, Instamart has also invested in 44 “megapods”-dark-format stores that support a wider range of products, including non-annoying high-margin directories. These megapods, according to the company, offer higher average (AOV) values (AOV) and play a key role in enlargement of the assortment of products on the platform.
While food delivery remains the main engine of income for Zomato and Swiggy, the gap between the contribution of the revenues of Zomato and Blinkit is to shrink. On the other hand, Swiggy’s dependence on its main food delivery activity continues, Instamart has not yet reached a significant scale or efficiency.
Adding to the pressure on Swiggy is to intensify Zepto, Flipkart Minutes and Bigbasket fast trade competition. The recent launch of Swiggy from “Bolt”, a 10 -minute food delivery service aims to counter the previous Zomato Quick Zomato Quick, which has since been closed due to operational challenges.
While the two companies double in fast trade, the battle does not only concern who delivers faster, but which first reaches profitability.
