The Swiggy share price was under significant selling selling pressure after a social media claim surfaced alleging that Swiggy Instamart users received substantial amounts of ‘free cash’ through randomised coupons on the app. According to user reports, the credited amounts ranged from Rs 4,000 to as high as Rs 5 lakh, allowing some customers to place heavily discounted or nearly free orders.
Screenshots of successful transactions were widely shared online, with some showing purchases worth over Rs 50,000 made for just Re 1. While some orders were reportedly delivered, the situation has contributed to Swiggy’s ongoing stock decline, marking its fifth consecutive season of losses.
Swiggy shares down 38% YTD
Swiggy share price plunged as much as 7% in intra-day trade. The company’s stock has declined over 21% in a week, more than 26% in a month, and has dropped 33% year-to-date (YTD), slipping below its initial issue price. Investors have lost over Rs 40,250 crore this year extending the post-Q3 losses to another low.
Continued decline in Swiggy, Zomato business fundamentals
Even as Swiggy and Zomato ramp-up their quick-commerce operations, the food delivery segment had seen a slowing growth. Both companies reported weaker-than-expected earnings for Q3FY25. Zomato’s net profit dropped 57% YoY to Rs 59 crore, while Swiggy’s losses widened to Rs 799.08 crore from Rs 574.38 crore a year earlier. As rising expenses impacted revenues, Swiggy grew only 31% in that segment with similar expenses at 32%. In Q3, Instamart’s EBITDA margins continued to be under pressure.
Swiggy: Grappling with competition
The controversy also highlights the growing competition in India’s quick-commerce sector, with Swiggy Instamart facing strong rivals like BlinkIt and Zepto. With international investors, Zepto strikes a competitive nerve with BlinkIt and Instamart. While Swiggy grapples with this setback, its competitors have made significant strides, especially in Q3 market performance. The sector’s intense competition has led to continued customer incentives, rising acquisition costs, and investments in dark store networks.
While Swiggy has yet to issue an official statement addressing the coupon glitch and its financial implications, the incident raises concerns about operational loopholes in the platform’s payment and discounting systems. With this industry becoming an increasingly competitive space. Feeling the quick-commerce weight, Swiggy’s ability to recover from this setback and sustain investor confidence will be crucial in the coming months.