Jefferies believes recent funding moves by Swiggy and Zepto won’t spark a price war in India’s quick-commerce space. Blinkit, owned by Eternal, holds its top position with superior profitability from rapid store growth and a focus on expansion.
Key Analyst Insights
Jefferies maintains a “Buy” rating on Eternal shares with an Rs 480 target, signaling 69% upside potential. The firm argues Swiggy’s Rs 10,000 crore QIP and Zepto’s potential $500 million IPO prioritize profitability for public markets over aggressive discounting. New entrants like Amazon, Reliance, and Flipkart pose limited near-term threats due to scaling challenges.
Funding Highlights
Swiggy secured Rs 10,000 crore ($1.2 billion) via QIP from major players including SBI MF, HDFC MF, GIC, BlackRock, and Temasek. CEO Sriharsha Majety highlighted strong investor faith in Swiggy’s execution. Zepto, fresh off a $450 million raise valuing it at $7 billion, eyes an IPO with fresh shares and an offer for sale to fuel growth.
Market Reaction
Zepto IPO reports initially pressured Swiggy and Eternal shares, but Jefferies’ optimistic note reversed the trend. Swiggy climbed over 2% to Rs 405, while Eternal rose similarly to Rs 290.50. Jefferies sees Zomato’s growth slowdown as neutral for valuations, with festive shifts causing only minor Q3 impacts.
Disclaimer:
This content summarizes publicly available market reports and analyst views from Jefferies. It does not constitute financial advice, investment recommendations, or endorsements. Stock prices fluctuate; past performance is no guarantee of future results. Consult a qualified advisor before making investment decisions. Data as of December 17, 2025.
