Zomato, Swiggy Shares Dive Up To 40% in 2025; What’s Causing Selling Pressure?

By Sheetal Kumari | March 3, 2025

MC Desk | March 25, 2025

Zomato, Swiggy Shares Dive Up To 40% in 2025; What’s Causing Selling Pressure?

International brokerage Macquarie has maintained a cautious outlook on Zomato and Swiggy, favouring restaurant stocks like Devyani International and Westlife Foodworld.

Macquarie’s bearish stance

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Rising discretionary spending was expected to boost demand, but a sluggish recovery in consumption is weighing on food delivery stocks.

Discretionary spending slowdown

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Rival Zepto is reportedly in talks for a $250 million secondary stake sale, aiming to increase Indian investor participation ahead of its planned IPO.

Zepto IPO

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The rapid rise of Zepto in the quick commerce space is intensifying competition, putting pressure on Zomato and Swiggy’s market dominance.

Competition heating up

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Zomato’s food delivery CEO Rakesh Ranjan had earlier flagged a broad-based demand slowdown starting in November 2024, affecting order volumes.

Demand slowdown since November

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With Swiggy’s stock down 40 percent and Zomato nearly 25 percent off its highs, investors are likely unwinding positions amid weak sentiment.

Investors booking profits

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Rising operational costs, coupled with the ongoing push towards profitability, have led to a cautious stance from institutional investors.

Cost pressures and profitability concerns

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Broader market trends and volatility have added to selling pressure, contributing to the downturn.

Overall market sentiment

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Moneycontrol advises users to check with certified experts before taking any investment decisions.

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