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Swiggy's Hyperpure rival Assure is a multi-pronged revenue push that banks on the Swiggy’s logistics knowhow and expertise
Riding high at INR 617 just three months ago, the Swiggy
If that wasn’t enough, the stock is over 10% below its issue price of INR 390. But there’s also optimism in the air, especially as we enter FY26 and Swiggy prepares an arsenal of new businesses to scale up.
After lukewarm financial performance in Q3 FY25 (December), things have been downhill for Swiggy, which this week entered the B2B supply space with Assure. A direct rival to Eternal’s (formerly Zomato) Hyperpure, Swiggy Assure is the final piece of the puzzle, bringing the Bengaluru-based company on par with Eternal in terms of major lines of businesses.
Assure is the latest standalone app launched by Swiggy, which has decided to take a totally different approach post listing in November. Other standalone apps include Swiggy Snacc, a quick food delivery app and Pyng, a professional services marketplace. Besides this, Instamart was also launched as a quick commerce app.
It’s part of a new strategy where Swiggy looks to acquire new users in each of these verticals, even as it continues to offer a single app for food delivery, dining, live events and quick commerce.
For Swiggy, the revenue diversification push continues with the launch of Assure. This is potentially more significant because it allows the company to maximise its revenue share from restaurants and cloud kitchens, in addition to extracting more revenue on the food delivery side, and also adding to the Swiggy Snacc operations stack as well.
In essence, Assure is a multi-pronged revenue push that banks on the Swiggy’s logistics knowhow and expertise to take on Eternal’s burgeoning Hyperpure business.
Why B2B, And Why Now?
Hyperpure is no small business for Eternal. The B2B business has been on a steady growth path over the past few quarters. In Q2 FY25, Hyperpure saw its revenue nearly double to INR 1,473 Cr from INR 745 Cr in Q2 FY24.
In November 2024, Hyperpure launched ‘Express’ delivery service to deliver products in 30 minutes to 4 hours. The parent company also set up a processing plant to provide value-added food supplies, including sauces, spreads, pre-cut and semi-finished perishable products, to Hyperpure’s restaurant partners.
Swiggy is very likely planning a similar onslaught through Assure and could very well use this supply chain network to also streamline last-mile deliveries to dark stores for Instamart in the near future. This could prove material to improving Instamart’s profitability in the long run.
While Swiggy Instamart remains a key player in the space, Blinkit and Zepto have pulled ahead. BigBasket and Flipkart are also in the fray with heavy discounts, so competitive intensity in the quick commerce space is not suitable for a push towards profitability.
This leaves Swiggy with very little room to maneuver — starting a new business in a space where it is familiar with the customer base is a good way to plug the revenue gap as quick commerce matures.
Plus, Swiggy Assure is a great way to solve the supply chain headaches for Swiggy Snacc as well, which would have the same procurement needs as some cloud kitchens.
The Idea Behind Swiggy Assure
The food delivery business—once the primary growth engine—has witnessed a moderation in gross order value (GOV) growth over the past few quarters, particularly in urban markets. Meanwhile, its ambitious expansion into quick commerce has become a high-stakes bet that is proving costlier than anticipated.
“The company enjoys 45% share in food delivery, which should grow in high-teens in the medium term along with margin expansion. Quick commerce offers tremendous growth opportunities although faces high competition and hence, profitability will remain under pressure. This would result in negative EBITDA and free cash flow over FY25-27,” Jefferies analyst Vivek Maheshwari said.
Given the near-term pressures on margins and cash flow, the brokerage has set a price target of INR 400,
Meanwhile, JM Financial echoed similar concerns on Swiggy, stating that both Swiggy and its rival Zomato are expected to see rising EBITDA losses in their quick commerce businesses. The correction in their share prices in the past two months mean investors have a fresh and attractive entry point if they want to build up long-term positions.
JM Financial also maintains a ‘Buy’ rating on Swiggy with a target price of INR 500 as of March 2026.
Just a few weeks ago, we commented about Swiggy and Zomato only just starting to live up to their valuations which have been built all around food delivery. Quick commerce is yet to be factored in meaningfully into this valuation.
It’s no wonder then that Swiggy is looking to double down on food delivery by offering restaurant partners more services, and forming deeper inroads into the restaurant supply chain. But as ever, this new business will take a few months to mature.
Even Hyperpure took its sweet time but its revenue has doubled on a YoY basis in each of the last six quarters as per Zomato’s disclosures. But it’s not yet clear how many restaurants use Hyperpure services actively, but Hyperpure said it has served 40,000 partners till date.
Some might say Swiggy is late to the B2B supply game, but if it manages to convince restaurant partners on the basis of pricing and service quality, then there’s another big battle on its hand with its ‘Eternal’ rival.
Stock In Focus: PB Fintech Bounces Back
The week began with fears of a big dip for PB Fintech, but the insurance and loan distributor seems to have won back the faith of the retail investors.
Shares of the Policybazaar parent company finished the week 20% higher than last Monday’s opening price. Brokerage firm Kotak Institutional Equities gave PB Fintech a big thumbs up and upgraded its rating to ‘Add’ on the back of strong growth expectations and cheaper valuations.
KIE assigned a price target of Rs 1,525 to PB Fintech, which it breached this week already, interestingly. It will be intriguing to see where the stock goes after it opens on Monday.
Among the other top gainers, Ola Electric reversed its bad fortune on the stock markets with a relatively positive week, while Mobikwik, CarTrade and Tracxn had a bright week on bourses as well.
Markets Watch: Deals, IPO Tracker & More
- Fintech major Pine Labs is eyeing an initial public offering (IPO) in the second half of 2025, its CEO Amrish Rau has revealed, despite concerns related to market sentiments souring for new listings
- Global investment management firm Vanguard Group has bought 7.13 Lakh shares of CarTrade amid a major bull run for the company, which has seen its share price grow by 160%-plus in the last year
- After months of speculation, edtech unicorn PhysicsWallah has reportedly filed its draft red herring prospectus (DRHP) through the confidential route for an INR 4,600 Cr ($531.4 Mn) IPO
- Augusta TBO (Singapore) Pte Ltd and TBO Korea Holdings Ltd dumped over 70 Lakh shares of B2B travel tech company TBO Tek, representing a 6.8% stake in the company, for INR 870 Cr via bulk deals
- Listed gaming major Nazara has bought an additional 8.97% stake in Sportskeeda’s parent company, completing the full acquisition of the sports media platform
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