Mint Explainer | What Swiggy and Zomato’s spending patterns reveal about their future
While Swiggy used its funds to expand dark warehouses, repay debt and support day-to-day operations, Eternal took a more conservative approach, parking most of its capital in safe assets such as government bonds and fixed deposits.
Mint examines their different plans to understand what’s in store for the country’s food distribution ecosystem.
How much did the last two raise?
In November 2024, Swiggy and Eternal raised significant funds. Swiggy launches initial public offering (IPO) ₹11,327 crore. Only of these ₹4,359 crore was the new capital the company had allocated for its business. The rest went to shareholders who sold their shares.
Eternally elevated ₹8,436 crore through a qualified institutional placement (QIP), which allows listed companies to raise funds privately from large institutional investors such as mutual funds and insurance companies.
How much of these funds have they used so far?
Despite raising half of Eternal’s funds, Swiggy used almost double that rate. used ₹2,852 crore or about 62% ₹4,359 crore was raised through the IPO, covering debt repayment, expansion of dark store for flash commerce arm Instamart, and brand marketing.
Yes ₹1,647 crore in fixed deposits and short-term instruments and plans to increase ₹10,000 crore through QIP in the December quarter.
spent forever ₹2,946 crore or around 35% of QIP funds as of September quarter. remaining parked ₹5,491 crore in bank deposits and government bonds, accumulating interest as the company focuses on profitability and incremental growth, prioritizing dark store expansion, technology upgrades and marketing.
Where did they spend their money?
Swiggy and Eternal have invested in key areas like dark store expansion, technology and marketing to expand reach. But spending patterns reveal opposing strategies.
The biggest part of Eternal ₹2,946 crore outlay of QIP funds — ₹1,039 crore — allocated for dark store expansion followed by corporate general expenses. ₹942 crore. Also spent ₹636 crore along with marketing and customer acquisition ₹329 crore in technology development.
Eternal’s measured approach reflects its caution while focusing on strengthening Blinkit’s operational network. ₹5,491 crore in bank deposits and government securities for future use.
Swiggy, on the other hand, adopted a much more aggressive spending strategy. The bulk of their spending went to marketing and branding; ₹568 crore, followed by expansion of dark store ₹546 crore and general corporate purposes ₹1,137 crore. He also invested ₹299 crore in technology and infrastructure and fully repaid ₹165 crore on the acquisition of Scootsy.
How long can these funds last?
Eternal’s slower spending gives it a longer financial runway. Having used only one-third of its QIP funds so far, the company has enough liquidity to finance its operations for almost two more years at this rate.
But Swiggy is burning through its IPO proceeds much faster. At its current rate, the remaining funds will not last more than two to three quarters, requiring an increase. ₹10,000 crore through QIP.
What do these expenses say about their strategy?
Satish Meena, founder of market research firm Datum Intelligence, said Swiggy’s high burn rate underlines its struggle to capture market share. “The (spend) ratio is different because Swiggy is catching up.”
“Swiggy is more aggressive in terms of expansion because it is in a position to gain market share,” he said. “He now wants more market share. That’s why he gives more discounts, has higher fuel consumption and has even started to reduce delivery and transportation fees.”
In contrast, Eternal’s competitors like Blinkit and Zepto take a more measured approach, focusing on improving service quality and customer retention rather than heavy discounts. “Blinkit’s market share is almost double that of Swiggy (Instamart),” Meena said. “It is spending more to shorten delivery times, add more categories and expand dark stores to improve customer experience.”
This reflects a long-term play in a category where loyalty builds over time. “The grocery store is a long-term market. Once you buy a household, your focus should be on keeping it by providing better service.” Meena said, adding that Blinkit is trying to solve structural challenges to ensure long-term sustainability.
