Swiggy’s cash build-up signals tougher competition ahead in the quick commerce sector: Bernstein

Swiggy’s ₹10,000-crore qualified institutional placement (QIP) was subscribed 4.5 times, signalling strong investor confidence. Jignanshu Gor, Director & Senior Research Analyst at Bernstein said the company now has the firepower it needs to compete more directly with Blinkit.India’s quick commerce sector is entering a new, aggressive phase, with large fundraises, intense competition, and rising questions about long-term profitability. Calling it a true “war chest”, he explained that Swiggy wanted to strengthen its balance sheet not only for competition, but also to bring in more domestic investors.

Blinkit, however, still has a much stronger cash position. “Between the two of them, now you have ₹35,000 crore of cash… largely in terms of discounts,” he said. This means customers may continue to benefit from aggressive pricing as companies chase growth.

Gor believes the sector has huge potential, but only a few large players will survive. Today, Blinkit leads on almost every metric—scale, order volumes, profitability, and growth.
He added that the industry’s focus keeps shifting, “The year 2026 might be—you have a war chest, but show me you can be profitable.”For investors looking to increase exposure to quick commerce, Bernstein remains clear: Blinkit (through Zomato) is the long-term leader.

Gor said Blinkit is “the clear winner” and is likely to remain ahead for the next 3–4 years. Zomato continues to be Bernstein’s top pick in the listed space.

He also noted that Swiggy’s QIP could help the company regain some market share lost to Blinkit. Bernstein believes Swiggy’s quick-commerce business had been undervalued earlier, and the fundraising could reposition it better—especially with Zepto intensifying competition.

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