Swiggy Rejects Report Claiming Instamart Losing Market Share To Zepto

Swiggy has rejected the market share figures reported by a media publication citing an internal memo from HSBC which cited data from Redseer and Zepto.

“The article refers to an internal memo from HSBC which in-turn quotes data from Redseer and Zepto. We have received a confirmation from Redseer confirming that (i) no data or analysis has been shared by Redseer with HSBC or with MoneyControl in relation to the article; and (ii) the market share data and view mentioned in the article does not match Redseer’s internal research,” Swiggy said in an exchange filing.

Swiggy described the data cited by competitor Zepto as baseless and unreliable. “The data and views referred to in the article by an unlisted competitor are therefore baseless and unreliable and the company categorically and strongly denies the content in the said media and that information shared is factually erroneous and misleading,” it added.

Quick Commerce Race Heats Up

This comes at a time when the quick commerce sector is seeing intense competition. A recent JPMorgan report highlighted a strategic shift among India’s quick commerce players, noting rising marketing intensity from Blinkit and Instamart as they move away from discounts towards performance-led marketing. 

Meanwhile, Zepto has pulled back on performance marketing despite continuing heavy discounting.

A report by NDTV, citing the JPMorgan report, mentioned that Zepto has raised median discounts by 9-10% but has drastically cut performance marketing spend to its lowest level ever, reducing investment by around 60% quarter-on-quarter.

Besides, Zepto is also offering free deliveries and is not charging platform fees in a bid to increase its market share. 

JPMorgan said that Zepto’s reduced visibility in ads appears to be affecting its weekly active users, indicating weaker engagement despite heavy discounts. In contrast, Blinkit is ramping up marketing to levels higher than previous quarters, signalling a strong push to expand stores and acquire new customers.

It is pertinent to note that all three major quick commerce players are currently well-capitalised. Zepto raised around $450 Mn in October, while Swiggy is raising about INR 10,000 Cr via QIP. Blinkit’s parent Eternal raised INR 8,500 Cr through a QIP last year and has been infusing capital in the quick commerce arm. Yesterday, it was reported that Eternal pumped in INR 600 Cr into Blinkit.