Swiggy's Strong Denial of Market Share Claims
Food delivery giant Swiggy has issued a firm rejection of recent media reports suggesting that its quick-commerce division, Instamart, has suffered significant market share losses to competitor Zepto. In a strongly worded disclosure submitted to stock exchanges on Thursday, November 27, the company labeled these claims as completely baseless and unreliable.
The Controversial Brokerage Report
The controversy began when a news report cited an HSBC brokerage note claiming that Zepto had gained substantial market share at Instamart's expense between September and November. According to the report, this shift occurred due to Zepto's aggressive market strategies and promotional activities.
However, Swiggy's exchange filing revealed crucial information that challenges the report's credibility. The company stated that the circulating reports relied on an internal memo from a financial institution that attributed data to research firm Redseer and an unlisted competitor.
Redseer's Crucial Denial
In a significant development, Swiggy reached out to Redseer for clarification, and the research firm completely denied any involvement with the disputed data. As proof, Swiggy included an email from Redseer in its BSE filing that clearly states: "We confirm that no data or analysis was shared by Redseer with HSBC or with Money Control in relation to this article."
The email from Nikhil Dalal, Associate Partner at Redseer, further emphasized that "the market share data and view mentioned in the article does not match Redseer's internal research." This direct denial from the cited research firm substantially undermines the original report's claims.
Intensifying Quick-Commerce Battle
This public rebuttal highlights the fierce competition for the second position in India's rapidly growing quick-commerce sector, which is currently led by Zomato-owned Blinkit. The timing is particularly significant as both Swiggy and Zepto are preparing to approach public markets for potential fundraising totaling nearly ₹15,000 crore.
Industry experts note that Zepto has recently employed aggressive tactics including fee waivers and promotional offers to boost order volumes. However, Swiggy's firm denial and supporting evidence from Redseer suggest that any claims of market share changes require careful verification from official sources.
Swiggy concluded its clarification by advising all stakeholders to rely exclusively on official company disclosures for accurate information. The company also confirmed that there is no unpublished price-sensitive information that requires disclosure under SEBI regulations, maintaining transparency with investors and the market.
