The quick commerce market is gearing up for another round of aggressive competition. With Zepto’s latest $450 million fundraise, the 10-minute delivery race, already one of the costliest battles in the consumer Internet space, is set to intensify once again.
The company’s new capital infusion takes its total cash reserves to about $900 million, setting the stage for renewed spending on discounts, marketing and expansion. Analysts said that after months of exercising financial caution, Zepto now has the firepower to get back on the offensive. For consumers, that could mean deeper discounts and faster deliveries. For the companies, it likely means a longer road to profitability.
Zepto had spent much of the past year tightening its belt. The startup, which posted losses of around Rs 1,248 crore in FY24 on revenues of Rs 4,454 crore, had slowed its pace of store openings, cut back on marketing and reduced user incentives. These measures helped it bring down its monthly burn rate, from a peak of about Rs 660 crore in January, 2025 to between Rs 450 crore and Rs 480 crore by March, 2025, according to people aware of the matter.
That restraint may now give way to a fresh phase of expansion. Industry executives expect Zepto to channel its new funds into growth, which means opening more dark stores, re-energising brand campaigns and reintroducing sharper pricing. “They have done the clean-up on costs and now have money to grow again. That changes the competitive dynamics for everyone,” an investor tracking the space told Fe.
But Zepto is not entering a calm market. Blinkit, backed by Zomato’s parent Eternal, continues to expand at breakneck pace. Eternal ended the September quarter with over $2.1 billion in cash, far outpacing the war chests of its rivals. The company has already increased its dark store target from 2,000 to 2,100 by December 2025, with a plan to reach 3,000 by 2027.
This expansion is being supported by an advertising blitz. Blinkit’s marketing spend in the September quarter was nearly four times higher than a year ago, and management has indicated that such levels will continue through FY26. The results are visible as the platform’s monthly transacting users jumped 23% sequentially to 20.8 million, while its net order value grew 137% year-on-year to Rs 116.8 crore. The company has also completed a major shift to an inventory-led model for roughly 80% of its operations, which it says will bring gradual margin improvements.
Swiggy’s Instamart, though less flamboyant, is also holding its ground. With a gross order value of Rs 5,655 crore in the June quarter, up 108% year-on-year, Swiggy has been focusing on higher order values and better unit economics. Its average order size rose 25% to Rs 612, driven by non-grocery categories and bundled offers like Maxxsaver. The company has guided for contribution margin break-even between December 2025 and mid-2026. However, after raising over $280 million through the sale of its stake in Rapido, Swiggy too may loosen its purse strings in the coming quarters.
Analysts said that what this sets up is another round of discounting and marketing competition across platforms. Each player has strengthened its balance sheet and appears ready to spend to protect or grow market share. For customers, this could translate into lower prices and faster deliveries over the next year. But for the companies, it could also mean that profitability targets are pushed further out.
When Blinkit’s management was asked about its break-even timeline in a post-earnings call on Thursday, CFO Akshant Goyal said it was “not really a milestone we are focused on”. The comment underscores the industry’s underlying truth that growth comes first, profits can wait. As of September 30, Blinkit’s adjusted Ebitda margin stood at -1.3% of net order value, while Instamart’s was -15.8% of gross order value in the June quarter.
Meanwhile, competition is not limited to the three pure-play quick commerce firms. Flipkart Minutes and Amazon Fresh are quietly scaling their hyperlocal delivery networks, backed by deep logistics capabilities and patient capital. Tata-owned BigBasket is also pushing its BB Now offering, operating over 700 stores compatible with the 10- to 20-minute delivery format.
Quick commerce has always been about density and scale, two goals that demand heavy investment before they yield returns. With Zepto’s renewed aggression and rivals unwilling to step back, the sector seems poised for another cycle of high spending.