Shares of Indian food delivery firms Swiggy and Eternal surged following news that Zepto, a major quick commerce competitor, has temporarily halted its initial public offering (IPO) plans. Swiggy saw its stock climb by 7%, while Eternal's shares rose by 5.5% as investors reacted positively to the reduced threat of a new, well-funded rival entering the public market. This surge marks a reversal for both companies, which had previously experienced a dip in December 2025 following Zepto's confidential pre-filing of its draft red herring prospectus (DRHP).
Zepto's decision to pause its IPO comes after a significant adjustment in its post-money valuation, estimated at $5.1 billion, a 27% reduction from the $7 billion valuation it achieved in October 2025 during a $450 million funding round. Analysts suggest this lower valuation was influenced by concerns regarding the company's cash burn and profitability trajectory, prompting a strategic reassessment of its public market debut. Zepto, founded in 2020, had aimed to go public in 2026, targeting to be one of India's youngest unicorns to list.
The news also coincided with a broader market sentiment shift. Earlier in March 2026, Swiggy and Eternal shares had fallen due to a cooking gas shortage impacting restaurant operations. Additionally, in December 2025, both companies experienced declines amid a nationwide delivery worker strike, which highlighted operational challenges in the gig economy. Swiggy also reported a narrower net loss of $95 million in the June quarter, down from $143 million in the year-ago period, boosting investor confidence. The pause in Zepto's IPO is seen as easing competitive pressures on Swiggy and Eternal, allowing them to potentially attract more investor capital and focus on their respective growth strategies in the quick commerce sector.
