Made in India, Priced in Gold: E-Comm Firms Toast Market Dominance

Indian leading e-commerce titans Swiggy Ltd. and Eternal Ltd., parent of Blinkit and Zomato, have outpaced domestic standards as well as regional rivals, including behemoths from China, with investors' expectations of profitability and leadership in the market continuing to gain strength.

Swiggy's stock increased 20% in June, with Eternal up 11%, both beating the NSE Nifty 100 Index. The rally is a testament to growing optimism in India's quick-commerce space that provides delivery of essentials in under 10 minutes and is projected to reach $100 billion by 2030, according to Bloomberg Intelligence.

Greatest Growth Drivers

Quick-Commerce Boom: Swiggy's Instamart, Eternal's Blinkit, and Zepto now command 88% market share in India.
Operational Efficiency: Incumbents are managing delivery costs and rider utilization better than new entrants.
Monetization Strategies: Platforms are raising average order value, reducing discounts, and introducing paid services.

China's Contrast

Chinese firms like Meituan and JD.com have lost over $70 billion of market capitalization since March due to razor-thin price wars.
Indian incumbents are focusing on profitability rather than growth, while Chinese peers are grappling with margin compression.

Investor Sentiment

Swiggy's analyst buy recommendations hit a post-IPO high.
Eternal's Blinkit retains the dominance of the segment following its 2022 acquisition.
Zepto's upcoming IPO might divert some investor attention but won't shatter incumbents' grip.

Sources: Moneycontrol, MSN, Business Standard, The Hindu Business Line, Times of India