India's quick-commerce and food delivery sector is witnessing rapid developments, and all eyes are on Zomato (also known as "Eternal") and Zepto. Both companies are emerging as dominant players, but a recent turn of events has tilted market sentiment in favor of Zomato, triggering a noticeable rally in its stock price. Here's a detailed look into why Zomato is gaining traction and what lies ahead for the sector.
Zepto's IPO Delayed to 2026
One of the key drivers behind Zomato’s recent stock surge is the announcement that Zepto, a fast-growing quick-commerce startup, has postponed its planned IPO to 2026. Initially, Zepto had plans to raise ₹6,800 crore through its public offering. However, amid intensifying competition and rising operational costs in the sector, the company has decided to prioritize strengthening its balance sheet, improving margins, and addressing cash burn issues before entering the public markets.
Even if Zepto were to file its Draft Red Herring Prospectus (DRHP) now, market experts believe it would be nearly impossible for the IPO to happen before the end of 2025. Therefore, all focus has now shifted to internal operational improvements rather than immediate market listing.
Market Share Dynamics
Zepto has made remarkable strides in a short time, capturing 29% of the quick-commerce market. This aggressive growth had earlier triggered negative sentiment for both Zomato and Swiggy stocks when rumors of Zepto's IPO first surfaced. However, the delay in the IPO has now given breathing space to existing market leaders.
Currently, Zomato remains the undisputed leader with a commanding 46% market share. Swiggy follows with around 25%, while Zepto has quickly climbed to 29%. This clear lead positions Zomato favorably among investors, especially in a period of reduced external threats.
Valuation and Market Cap
The numbers further reinforce Zomato's leadership status. Based on its last fundraising round, Zepto's valuation stands at approximately ₹43,000 crore. In comparison, Swiggy is valued at around ₹90,000 crore. However, Zomato is miles ahead, with a market capitalization of ₹2.47 lakh crore — more than double that of Swiggy and nearly six times that of Zepto.
This significant lead in valuation reflects investor confidence in Zomato's long-term growth trajectory and strong fundamentals.
Technical View: Bullish Momentum in Zomato
From a technical standpoint, Zomato's stock has shown a robust bullish pattern. It had been consolidating around the 243–245 levels for nearly three to four months. Recently, the stock successfully crossed these resistance levels, indicating strong upward momentum.
According to analysts, the stock was trading near ₹220 just a few days ago, and the current breakout suggests potential targets of ₹275 to ₹280 in the short term. However, any pullback to levels around ₹245 or slightly below ₹250 could provide a good opportunity for long positions. The overall sentiment remains bullish, and any corrections are seen as buying opportunities.
With Zepto deferring its IPO and choosing to focus on internal efficiencies, the competitive pressure on Zomato has eased, at least for the short term. Combined with its leadership in market share, strong valuation, and favorable technical charts, Zomato seems well-positioned to continue its upward journey on the stock market.
As things stand, investors are viewing Zomato as a stable and dominant player in a rapidly growing sector, while Zepto’s cautious delay signals both maturity and the challenges of scaling in a fiercely competitive environment.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions
