12 May 2025
In the fast-paced world of grocery deliveries, Zomato’s Blinkit and Swiggy’s Instamart are feeling the heat from growing competition—and it’s hurting their bottom lines. Both companies poured cash into expanding their delivery networks over the past quarter, which drove up their adjusted EBITDA losses.
While Blinkit still leads the pack, it warned investors that tighter margins are here to stay. Blinkit’s adjusted EBITDA margin—measured as a percentage of Gross Order Value—fell to –1.9% in Q4 (January–March), down from –0.9% a year earlier and –1.3% in the previous quarter.
Instamart’s losses were even larger. Swiggy reported an adjusted EBITDA margin of –18% for its quick-commerce arm in Q4, compared to –13.2% in the same period last year and –14.8% in Q3.
Both Zomato and Swiggy highlight that intensifying competition is pushing them to invest more just to keep up—making a profit an elusive goal. Instamart plans to rein in losses by improving efficiency, but analysts warn that cash burn remains a key challenge.
As Blinkit and Instamart battle for market share, their ability to carve out sustainable profits—and stem rising losses—will determine who comes out on top in India’s booming quick-commerce race.
In the fast-paced world of grocery deliveries, Zomato’s Blinkit and Swiggy’s Instamart are feeling the heat from growing competition—and it’s hurting their bottom lines. Both companies poured cash into expanding their delivery networks over the past quarter, which drove up their adjusted EBITDA losses.
While Blinkit still leads the pack, it warned investors that tighter margins are here to stay. Blinkit’s adjusted EBITDA margin—measured as a percentage of Gross Order Value—fell to –1.9% in Q4 (January–March), down from –0.9% a year earlier and –1.3% in the previous quarter.
Instamart’s losses were even larger. Swiggy reported an adjusted EBITDA margin of –18% for its quick-commerce arm in Q4, compared to –13.2% in the same period last year and –14.8% in Q3.
Both Zomato and Swiggy highlight that intensifying competition is pushing them to invest more just to keep up—making a profit an elusive goal. Instamart plans to rein in losses by improving efficiency, but analysts warn that cash burn remains a key challenge.
As Blinkit and Instamart battle for market share, their ability to carve out sustainable profits—and stem rising losses—will determine who comes out on top in India’s booming quick-commerce race.
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