SWIGGY

** Indian delivery platform Swiggy SWIG.NS sheds 6.2% to 307.05 rupees

** EBITDA losses at its quick-commerce unit Instamart - its biggest revenue generator - widen sequentially, even as contribution and EBITDA margins improve

** However, at the group-level, SWIG reports narrower sequential loss; reaffirms outlook for contribution margin break-even by Q1 FY27

** "There are a lot of unanswered questions especially on quick-commerce's profitability path," says Jefferies as raises its estimates for Instamart's losses going ahead

** Elara Capital says Q3 results were a "mixed bag" but says it expects aggressive focus on profitability for quick-commerce as management maintained it outlook for contribution margin break-even

** YTD, SWIG down 20.5%

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

Adds details throughout

Jan 29 (Reuters) - India’s Swiggy posted a smaller sequential loss and reiterated that it aims to hit a key profitability metric in the first quarter of next year, driven by strong growth in its Instamart quick‑commerce business.

India’s quick‑commerce sector - which delivers everything from milk to mobile phones within minutes - has drawn heavy investment as companies race to expand in the fast‑growing segment.

Swiggy posted a consolidated loss of 10.65 billion rupees ($115.8 million) for the quarter ended December 31, compared with 10.92 billion rupees in the previous quarter, though losses remained wider than the 7.99 billion rupees it reported a year earlier.

The company said it remains confident of achieving contribution-margin break-even - when revenue from each order covers its direct fulfilment costs - in the first quarter of fiscal 2027.

Contribution margin for its quick‑commerce business improved 9 basis points sequentially to negative 2.5%.

Swiggy’s Instamart, Eternal’s Blinkit and Zepto remain the sector’s leading players, vying for market share through steep discounts, subsidised deliveries and rapid warehouse expansion.

The race has pressured profitability at Eternal ETEA.NS and widened losses at Swiggy, which said last year that absolute losses would begin to decline gradually.

Instamart’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margins improved 65 basis points from the prior quarter to a negative 11.4%.

Quick‑commerce revenue surged 76% year‑on‑year, driven by a similar rise in net order value, helping lift overall revenue 54% to 61.48 billion rupees.

Swiggy's losses narrowed largely due to improved network density, with a higher store count in key markets reducing its cost per order.

The company opened 34 “dark stores” - compact warehouses in densely populated neighborhoods - in the third quarter, taking its total to 1,136. It had added 40 dark stores in the second quarter.

(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)

(([email protected]; 8800437922;))

Rewrites throughout; Adds analyst comments in paragraph 4,10, CFO comment in 7

By Komal Salecha

Jan 22 (Reuters) - Shares of India's Eternal ETEA.NS erased early gains on Thursday as concerns over the long-term profitability of its quick-commerce unit Blinkit amid intensifying competition outweighed strong results.

The stock lost as much as 2.6% and was down 0.8% as of 12:20 a.m. IST. It hit a high of 8% in premarket trading.

The company, formerly Zomato, reported a 73% rise in quarterly profit on Wednesday.

"While the results are good, there is fear whether it will be able to keep up with profitability," said Rahul Jain from Dolat Capital.

Analysts said risks remain around Blinkit's long-term profitability. Blinkit has become Eternal's biggest revenue engine in recent quarters, fuelled by a boom in India's $11.5 billion quick-commerce market, where rivals race to deliver everything from iPhones to milk in minutes.

Eternal said that growth could weigh on margins in the near-term. It also said founder Deepinder Goyal would step down as chief executive to be replaced by Blinkit head Albinder Dhindsa, while adding that the once cash-hungry unit had turned profitable.

"In the short term, we want to take the right decisions for the business, even if that means taking a hit to margins," Eternal CFO Akshant Goyal said in a post-earnings call, but added that the company was not signalling such an impact in the very next quarter.

Blinkit leads India's quick-commerce market with a 48% share, ahead of Swiggy's SWIG.NS Instamart at 24% and Zepto KIRK.NS at 22%, data for 2025 from Datum Intelligence showed.

The market is projected to more than triple to about $40 billion by 2030, underscoring the high-stakes race for scale and dominance.

"The risk is that the market leader could be drawn into a dogfight too, with lower minimum order values and higher discounts," Morgan Stanley said in a note.

(Reporting by Kashish Tandon and Komal Salecha in Bengaluru; Writing by Chandini Monnappa, Editing by Sonia Cheema and Nivedita Bhattacharjee)

(([email protected];))

Rewrites throughout, adds comments from CEO

By Chandini Monnappa and Komal Salecha

Jan 21 (Reuters) - Zomato parent Eternal's ETEA.NS founder and CEO, Deepinder Goyal, will step down after 18 years at the helm, handing over the reins to Albinder Dhindsa, the head of its fast-growing quick-commerce business Blinkit.

Goyal launched Zomato in 2008, led it to a landmark stock market listing in 2021 and later rebranded the group as Eternal following its purchase of Blinkit in 2022, which has since become the company's largest revenue driver.

Dhindsa takes over at a time when Eternal is fiercely competing with Swiggy SWIG.NS, Amazon.com AMZN.O and others to expand its share of the lucrative $11.5 billion instant delivery market.

He previously headed Zomato's international operations for more than two years before leaving to start Blinkit in 2014.

Goyal, the poster boy of India's quick delivery boom, will remain Eternal's vice chairman. He said in a letter to shareholders on Wednesday that he was shifting focus to his other ventures involving "exploration and experimentation beyond the company's core businesses."

Zomato, one of India's earliest and most successful unicorns, transformed food delivery from an urban convenience into a widespread cultural phenomenon across the country.

"I want Eternal to become India's most valuable company," Goyal said in the letter.

Eternal's shares have more than doubled since the company's listing to value it at about $15 billion.

While the company has added to India's burgeoning gig workforce, it has also come under fire in the past for deep discounting, driver safety and a move to launch a vegetarian-only delivery fleet.

"While I believe I personally have the bandwidth to continue what I am doing at Eternal, and also explore new ideas outside of it, the expectations, legal and otherwise, of a public company CEO in India demand singular focus," Goyal said.

He has invested $25 million through his research group Continue Research to explore human biology and longevity. He also founded LAT Aerospace to develop low-cost regional and short-haul aircraft for India and emerging markets.

BLINKIT WILL REMAIN DHINDSA'S TOP PRIORITY

Goyal said Blinkit will continue to remain Dhindsa's top priority.

"Blinkit's journey from acquisition to breakeven happened under Dhindsa leadership ... his ability to execute far exceeds mine," Goyal added.

Brand strategy specialist Harish Bijoor said bringing in the CEO from Blinkit is testimony that quick commerce is the future. "It is the rainmaker and the key differentiator," he said.

Eternal also reported a 73% jump in quarterly profit, while

Blinkit posted adjusted core earnings of 40 million rupees compared with a loss of 1.56 billion in the previous quarter.

(Reporting by Chandini Monnappa, Komal Salecha and Kashish Tandon in Bengaluru; Editing by Janane Venkatraman, Nivedita Bhattacharjee and Saumyadeb Chakrabarty)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

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Jan 20 - By Ira Dugal, Editor Financial News, with global Reuters staff

Reliance Industries RELI.NS has had a rough start to the year, with a rare share-price slide in January and weaker-than-expected earnings, highlighting the pressures building across some of its key businesses.

What is the outlook for the stock of India's most valuable company? That's our focus this week. Write to us at [email protected]

And, India plans to open up the defence sector to larger foreign investment. Scroll down for that Reuters exclusive report.

THIS WEEK IN ASIA

*Japan's snap election and tax pledge keep nation's finances in spotlight

*Indonesia's rupiah hits record low on central bank independence worries

*China curbs ‘flash boys’ access to exchange data, sources say

*As US orders fade, Chinese salespeople face tough grind in new markets

*Dozens missing after massive Karachi mall fire, 21 killed

TESTED BY GEOPOLITICS

Mukesh Ambani’s Reliance, which has a market value of 19.12 trillion rupees ($210.42 billion), has slumped about 10% so far in 2026, a rare early-year drop that has weighed on the benchmark Nifty 50 .NSEI, which is down roughly 2%. The last time the stock dropped more in any January was in 2011.

The fall, including a 3% decline after the company reported weaker-than-expected quarterly earnings, reflects complications in its refining business due to geopolitical tensions, intensifying competition in its retail operations, and investor caution ahead of the planned listing of its telecoms unit.

The company faces "headwinds" from loss of Russian crude in its export-focused refinery and higher freight costs in its core oil-to-chemicals business, Jefferies said in a January 16 note.

But it could potentially resume purchases of Venezuelan oil, defraying the loss of Russian barrels, the brokerage said.

Reliance cut imports of Russian oil by 32.4% in December, the lowest level since February 2024, under pressure from Western sanctions, data analysed by Reuters journalist Nidhi Verma showed. The company's Russian imports are likely to be low in January too. Click here for that story.

The company has said it is in talks with the U.S. to permit purchases of oil from Venezuela.

Despite these challenges, the business continues to report strong financials.

Factors working in its favour include strong volume growth and fuel cracks - the difference between the price of refined products and the crude used to produce them - Mumbai-based brokerage BOB Caps said.

Fuel retailing volumes via the Jio-BP joint venture are also expanding, it added.

RETAIL REVENUE GROWTH LAGS

Where the earnings disappointed most was in the retail business, Reliance Retail, which was dragged down by India's shifting consumer preferences.

Reliance Retail reported a 9% growth in net revenue, lower than the 13% for competitor Avenue Supermarts AVEU.NS, and blamed this partly on a shift in festival dates and a demerger of its consumer products division.

Its margins also declined due to discounts offered in the festival season and investments made in quick commerce.

India's fast-changing consumer market has seen attention shift from traditional stores to online shopping and now quick commerce where deliveries within minutes have sparked opportunity and risks.

The company told analysts this business is already margin- positive as Reliance leverages its extensive store network to deliver electronics, fashion, and groceries, creating a unique omnichannel advantage.

The quick-commerce business, where Zomato, run by Eternal ETEA.NS, Swiggy SWIG.NS and Walmart's WMT.O Flipkart are big players, recently came under fire for promoting 10-minute deliveries that critics have argued put delivery staff at risk.

Read here to catch up on the controversy.

Jefferies analysts also red-flagged Reliance's fast-moving consumer goods business where too many brands may mean it is spreading itself "too thin".

While the retail business seems to be some distance away from a listing, the public offering of the telecoms unit Jio Platforms appears imminent.

The government has given the green light for a minimum float of 2.5% for a public listing, clearing the way for large IPOs including Jio's.

Despite the pressures, analysts still see upside to the Reliance Industries stock in 2026, with only 2 of 34 analysts on LSEG listing it as a sell. The median price target on the stock is 1,700 rupees per share, a 20% upside from current levels.

MARKET MATTERS

A ruling by India's top court in a tax case related to U.S. investment firm Tiger Global's sale of shares in Flipkart to Walmart in 2018 has spooked global investors who have poured $180 billion into India via the tax haven of Mauritius.

Read details of the judgement here and don't miss this analysis on its implications for investors.

The ruling comes at a time when India has seen a sharp drop in portfolio and strategic investments from overseas, a decline that the market regulator is trying to reverse through a series of steps.

THIS WEEK'S MUST-READ

India plans to make it much easier for foreign firms to invest in defence companies, Reuters journalists Nikunj Ohri and Sarita Chaganti Singh reported.

Foreign firms may be permitted to pick up 74% in Indian firms with government approval, and tough conditions related to technology transfers may be lifted.

Read the details here.

($1 = 90.6663 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

** Shares of quick commerce firm Swiggy SWIG.NS down 1.71% while Eternal ETEA.NS trades 0.4% higher

** UBS maintains 'Buy' but cuts TP on both; SWIG at 375 rupees from 400 rupees and ETEA at 510 rupees from 580 rupees

** Says discounts, pricing checks and app usage data show strong competition in India's QC sector since Sept'25, with intense margin pressure continuing into Jan'26

** Also cuts EBIDTA estimates for the next 2-3 years by 10-18% for ETEA and 12-28% for SWIG

** On Tuesday, the government ordered Blinkit, Zepto and Swiggy to stop promoting their grocery deliveries as a "10-minute" service, Reuters reported citing two sources

** In 2025, SWIG's fell 28.6% whereas ETEA was flat

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

By Aditya Kalra and Munsif Vengattil

NEW DELHI, Jan 13 (Reuters) - India's government has ordered Blinkit, Zepto and Swiggy to stop promoting their grocery deliveries as a "10-minute" service, two sources said, in a setback for a sector that has changed the way Indians in cities shop and is sought after by investors.

Fears of rash driving by riders and low pay for not completing orders within 10 minutes have dogged the so-called "quick commerce" sector that today is worth some $11.5 billion, data from Datum Intelligence shows.

The labour ministry raised the issue during a closed-door meeting on Saturday with representatives from the three companies, asking them to stop promoting the business as a 10-minute service, the sources added, declining to be named as the gathering was confidential.

Eternal's ETEA.NS Blinkit did not respond to Reuters queries. IPO-bound Zepto and Swiggy SWIG.NS declined to comment. The labour ministry did not immediately respond to a request for comment.

The companies' quick commerce shopping apps allow urban shoppers to get groceries, and even many electronics and household items within minutes.

The industry has attracted billions of dollars in investment. Swiggy in December raised $1.11 billion from institutional investors, including BlackRock, Temasek and Fidelity.

Blinkit now describes its offering as "Groceries & more", instead of "Grocery in 10 minutes" earlier, according to the internet archive website Wayback Machine.

However, Tata's BigBasket, Zepto and Swiggy's Instamart all continued to promote their business offering as a "10-minute" service on the Apple App Store on Tuesday.

(Reporting by Aditya Kalra and Munsif Vengattil; additional reporting by Vibhuti Sharma, Editing by Alexandra Hudson)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Jan 13 (Reuters Breakingviews) - India is piling into consumer giants’ basket of troubles. Unilever ULVR.L and Nestlé NESN.S are losing pricing power in the world’s fifth-largest economy amid growing competition from nimble upstarts. It’s an unwelcome headache for the groups that are trying to revive their more established markets in Europe and the U.S. With no easy fixes, the problem may require expensive remedies.

Consumer titans were once synonymous with boringly predictable earnings. But a recent bout of management churn and intense competition has made them about as predictable as the start-ups they are now battling for market share. Last February, $140 billion Unilever replaced its CEO Hein Schumacher with its finance chief Fernando Fernandez to accelerate its growth plans. It also grappled with rising commodity prices and spun out its ice cream unit at a disappointing valuation.

Nestlé is enduring an even trickier time. The $240 billion Kitkat maker is on its third CEO in less than three years and is dealing with a decline in sales in Europe and the U.S. These factors have weighed on the groups’ share prices which are flat versus the same period last year, underperforming Europe’s Stoxx 600 .STOXX which is up nearly 20% in the same period.

In ordinary times, these groups could rely on their Indian businesses to compensate. Indeed, historically they performed better than their parents’ businesses in developed markets. At its 2016 peak, sales at Nestlé India NEST.NS grew nearly 16%, eight times the pace of the Swiss group’s European business and four times that of its Americas unit. As recently as 2021, Hindustan Unilever HLL.NS was growing turnover at a punchy 18% as Europe and the Americas only managed under 5%.

But those dynamics are changing. During the year ended March 2025 sales at HUL grew just 2% , down from double digits two years earlier. Meanwhile, Nestlé ’s Indian business grew 1% in 2024. That run rate means India can barely contribute much more to these groups' top lines than it currently does - 2% and 11% for Nestlé and Unilever respectively.

More concerning for investors, however, is the effect this is having on these groups' profitability. EBITDA margins of Hindustan Unilever and Nestlé India are off pandemic-era peaks and could remain below those levels at least until 2027, according to forecasts compiled by Visible Alpha.

The bosses of these businesses blame the recent weakness on rising commodity prices and high inflation which, coupled with stagnating incomes in the aftermath of Covid, have diminished Indians’ purchasing power.

The danger for investors is the decline may intensify. Affluent urban Indians are increasingly shopping for essentials on e-commerce platforms Eternal ETEA.NS and Swiggy SWIG.NS, which use a network of mini warehouses to deliver everything from milk to umbrellas in 10 minutes. These apps enable challenger brands like Honasa Consumer’s Mamaearth and Investment Corporation of Dubai-backed snackmaker Slurrp Farm to display their brands alongside legacy names like Sunsilk and KitKat, robbing Unilever and Nestlé of their storied distribution edge.

Big groups also missed the boat on premiumisation. Indian consumers have become aspirational. That’s birthed whole categories from grooming products to pancake mixes that Unilever, Nestlé and their large rivals are struggling to compete in.

Amid these forces, consumer group boardrooms face two unpalatable choices. They can jack up prices to protect margins but are likely to lose market share in the hypercompetitive Indian market. Alternatively, they can sacrifice margins to boost growth but that means fewer spoils to share with investors.

The first option hardly seems feasible as smaller and more agile rivals are only likely to take more market share from larger groups. Meanwhile, demand for private labels is growing which will put even more pressure on pricing. For now, investors may have to accept lower margins as Unilever and Nestlé try to protect their businesses and invest more heavily in new products.

The risks are plain to see in these groups' valuations. HUL now trades at 47 times forward earnings, down from 65 times in 2021 and lagging supermarket chain Avenue Supermarts' AVEU.NS 69 times.

For now, there are no easy fixes. Launching their own quick commerce offerings makes little sense for consumer giants as users of the existing apps are proving increasingly sticky. A less immediate but more effective way to counter the loss of pricing power is to rejig their product mix. HUL and Nestlé will have to ensure their presence across categories and locations so that consumers rising up the value chain choose their brands over upstarts. A bigger investment in agile AI-enabled tracking of sales trends at mom-and-pop retailers could help with that.

Acquiring fast-growing brands is another option. HUL's 2025 purchase of personal care brand Minimalist valued its target at 9 times its trailing sales, on par with its own multiple. But buying one of India's top online platforms is out of the question: Eternal and Swiggy are delivery service-based companies that would be a clunky fit in these sprawling manufacturing businesses.

Businesses may also need to rethink marketing in a country where close to two-thirds of the population is under the age of 35 and shopping choices are increasingly based on influencer recommendations. HUL spent 10% of its revenue on sales and marketing in the year to March 2025, while its personal-care rival Honasa shelled out 57%. If the Unilever unit raised marketing spend by 10%, its EBITDA margin would go down 87 basis points, Breakingviews calculations based on Visible Alpha estimates show.

To be sure, all these options involve squeezing margins in the short term to ensure staying power in a crowded market. For now, consumer giants will have to add India to their growing list of fixer upper projects.

Follow Shritama Bose on LinkedIn and X

(Editing by Aimee Donnellan; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Jan 5 (Reuters) - Swiggy Ltd SWIG.NS:

• CYRUS SOLI POONAWALLA BUYS 1.1 MILLION SHARES IN SWIGGY VIA BLOCK DEAL ON NSE - EXCHANGE DATA

• SERUM INSTITUTE OF INDIA SELLS 1.1 MILLION SHARES IN SWIGGY VIA BLOCK DEAL ON NSE - EXCHANGE DATA

Further company coverage: SWIG.NS

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add conversion of Indian rupee into US dollar in the second paragraph.

By Shritama Bose

MUMBAI, Oct 16 (Reuters Breakingviews) - All that glitters isn't gold when it comes to India's richest man. When Mukesh Ambani lists his telecom business in Mumbai next year, it will be a blockbuster event for the country's capital markets but it also will crystallise underwhelming returns for the world's biggest tech companies, private equity firms and sovereign wealth funds who backed his consumer unit in 2020. It heralds a reset of how foreigners view tycoons and competition in the country.

Five years ago when the Covid pandemic was shaking the world, Ambani's conglomerate Reliance Industries RELI.NS sold 1.5 trillion rupees ($16.99 billion) of stock in Jio Platforms to investors led by Meta Platforms META.O, KKR KKR.N and Saudi Arabia's Public Investment Fund; the flood of funds into India at the time was so large it caused a spike in foreign direct investment.

At 5.16 trillion rupees including debt, or $59 billion at current exchange rates, the landmark fundraising valued Jio's enterprise at 23 times its EBITDA, a multiple twice its nearest rival Sunil Bharti Mittal's Bharti Airtel and one reminiscent of a fast-growing technology startup.

Part of the hype was justified. The telecom unit Ambani founded in 2016 rose quickly by launching a bruising price war and was given a wide berth by India's competition authorities. Jio became the country's top provider of mobile services and helped to push down data tariffs to the lowest in the world. It even accelerated the bankruptcy of Reliance Communications RLCM.NS, led by Ambani's brother Anil. By the time Ambani welcomed outside investors, India's telecoms market had shrunk to a quasi-duopoly with a joint venture between Britain's Vodafone VOD.L and Kumar Mangalam Birla as a weak third player.

Fast forward and Jio had 498 million voice and data customers as of June 30 . Yet while this consumer business within Ambani's oil-to-retail conglomerate has continued to grow, it also has failed to live up to expectations in some striking ways.

Five years on from its fundraising, Jio's enterprise, including net debt, is valued at 10.6 trillion rupees, based on an average estimate of six brokers. That is nearly twice the value investors assigned it in 2020 or equivalent to an annualised return of nearly about 15%, one percentage point more than the annualised gross return of the MSCI India Index over a five year period. Private equity investors typically target returns of 20% and much higher in India.

Measured a different way, Jio's potential return could be even lower. The enterprise is worth just 8.7 trillion rupees if it is valued on 10 times its EBITDA, the same multiple Bharti Airtel commands. At that valuation, Jio would hand its backers including KKR, Silver Lake and TPG, an annualised return of just over 10%.

One problem is that Jio does not look like a "next generation technology platform". In 2020, Jio talked up a dazzling list of investments across its "digital ecosystem" including in "smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain". Although Jio doesn't have legacy 3G infrastructure to manage like its rivals, it still makes 87% of its revenue and 94% of its EBITDA from its basic communications unit Reliance Jio Infocomm RELJ.NS rather than from digital services, per CLSA analysts.

What's more, Jio's customers spend less than Airtel's. Average revenue per user has grown 60% over the last five years to 209 rupees ($2.37) but that lags the 250 rupees Airtel's India users churn out. Airtel's EBITDA margin for India and South Asia is also higher than Jio's by a staggering 770 basis points and its current offerings in cloud and artificial intelligence services closely mirror its challenger's.

Nor does Jio appear to have delivered on its strategic ambitions. Meta's Facebook pumped $6 billion in for a 10% stake but Ambani - whose Reliance conglomerate is also the owner of India's biggest retailer - did not lure millions of small grocers to transact on the payments system on WhatsApp, the U.S. company's social messaging platform - as was widely expected.

The rise of quick-commerce operations by Prosus-backed Swiggy SWIG.NS and Zomato-owner Eternal ETEA.NS killed Reliance Retail's 2022 attempt to enable grocery shopping through the messaging app. Similarly, Alphabet's Google GOOGL.O invested $4.5 billion in Jio but demand for the low-cost smartphone the duo launched in 2021 was weak; the telecom operator's wide reach didn't guarantee it a market.

Ambani's backers underestimated the strength of competition in India. They would have been better off if they had backed Bharti Airtel. Its shares have returned roughly 40% annually, including dividends, since 2020, significantly more than Jio looks set to deliver. Google enjoyed some of those spoils by hedging its bets: In 2022 it invested up to $1 billion in Jio's rival.

If Jio's returns are underwhelming, crystallizing them will be tough too. Ambani will need to launch one of India's largest initial public offerings. If 5% of the company's outstanding shares swap hands at a $120 billion valuation, Jio's bankers would need to find new owners for $6 billion of stock. That would be far too much for India's capital markets to swallow: Hyundai Motor India's HYUN.NS 279 billion rupee offering in 2024 remains the country's largest IPO, followed by Life Insurance Corporation's LIFI.NS 210 billion rupee deal in 2022.

Ambani could offer half the amount of stock or roughly $3 billion, using new rules from the Securities and Exchange Board of India but that would leave financial investors with billions of dollars of investments in Jio waiting for an exit; strategic investors, who may be willing to sit on their positions, bought about half of the $17 billion Jio initially raised.

Some of Jio's backers may still conclude that the investment was worth it. The dominance of family-led businesses in India often means that striking partnerships is increasingly seen as a matter of survival rather than choice for global companies and a way to protect themselves in the market. Global asset manager BlackRock BLK.N and China-founded online fast-fashion Shein are among others who are partnering with Ambani.

Yet an underwhelming payoff from Jio will strengthen the case for more scrutiny when foreign investors choose their local alliances in the future.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Reliance Industries will list its telecommunications unit by mid-2026, Chair Mukesh Ambani said at the conglomerate's annual shareholder meeting on August 29. "We are aiming to list Jio by the first-half of 2026, subject to all necessary approvals," he said.

Jio Platforms is targeting India's largest-ever initial public offering, IFR reported on September 5, citing unnamed bankers.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

By Ananta Agarwal and Mridula Kumar Kumar

Oct 15 (Reuters) - Indian online delivery firms Eternal ETEA.NS and Swiggy SWIG.NS could see profit margins improve slightly in the second quarter, analysts said, after at least a year of accelerating losses in their quick commerce arms due to higher costs.

Eternal's Blinkit, Swiggy's Instamart and start-up Zepto have emerged as the top players in India's booming quick commerce industry, which has seen marquee foreign investors pour in billions in funding.

In the frenzy to gain market share, Blinkit has established itself firmly in the lead by expanding first to smaller towns.

Their rapid expansion, as they aim to deliver everything from milk to iPhones in ten minutes, has weighed on Eternal's margins and widened Swiggy's losses.

The trend may begin to show reversal in the second quarter, as these companies benefit from a gradual reduction in discounting and improved unit economics that come with bigger scale and density, two analysts said.

Eternal is set to report results on Thursday, while Swiggy has not yet announced a date for its earnings.

"You may see some decline (in losses) for Blinkit. For Swiggy, the decline may be there, but marginally," said Rishi Jhunjhunwala, equity analyst at IIFL Capital Services.

At least four analysts expect Blinkit's adjusted core loss to narrow sequentially from 1.62 billion rupees ($18.35 million) in the first quarter. ICICI Securities and Elara Capital expect the loss to shrink to about 1 billion rupees in the second quarter.

ICICI Securities and Motilal Oswal expect Blinkit's adjusted EBITDA margin loss at between 0.7% and 0.6% in the second quarter compared to an EBITDA margin loss of 1.4% in the previous quarter, as a higher store count brings down cost per order.

Meanwhile, analysts at Elara Capital, Anand Rathi and ICICI Securities expect Instamart's loss to be roughly flat or slightly wider versus the previous quarter's 8.96 billion rupees loss.

However, Motilal, ICICI and Anand Rathi expect Instamart's adjusted EBITDA margin loss to narrow between 12.7% and 13.8%, compared to a margin loss of 15.8% of gross order value last quarter.

ETERNAL AND SWIGGY YEAR TO DATE STOCK PERFORMANCE

($1 = 88.3000 Indian rupees)

(Reporting by Ananta Agarwal and Mridula Kumar in Bengaluru; Editing by Eileen Soreng)

(([email protected];))

** Swiggy SWIG.NS, Zomato-parent Eternal ETEA.NS rise 2% each

** Motilal Oswal upgrades SWIG to "buy" from "neutral", raises PT to 560 rupees from 450 rupees

** Retains "buy" on ETEA, raises PT to 420 rupees from 330 rupees

** Says GST changes expected to accelerate adoption of quick commerce services in non-metro cities

** Expects food delivery growth to exceed 20% over the next two-four quarters, up from previously stunted 17%–18% growth, driven by upcoming festive demand, GST reforms

** Highlights easing expansion, discounts at Swiggy Instamart and Blinkit

** SWIG, ETEA rated "buy" on avg, with median PT of 450 rupees, 321 rupees, respectively, per data compiled by LSEG

** YTD, SWIG falls 20%, ETEA gains 20%

(Reporting by Rudra Pratap Singh in Bengaluru)

(([email protected]))

Updates shares in paragraph 2, adds new quotes

Sept 4 (Reuters) - India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods.

The benchmark BSE Sensex .BSESN and Nifty 50 .NSEI rose as much 1.1% on Thursday. By 11:55 IST, they pared some gains and were up about 0.5% each.

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

"The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

"At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence."

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

"The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."

SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.

"While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days."

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."

SHAILESH CHANDRA, PRESIDENT, SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector. Making vehicles more affordable, particularly in the entry-level segment, these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility."

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

"The 56th GST Council meeting marks a watershed moment for India's automobile retail industry. This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive.

"One area that may need earliest clarification is about levy and treatment of cess balances currently lying in dealers' books, so that there is no ambiguity during transition."

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

"Our categories such as ghee, soaps, biscuits, noodles, honey, and chyawanprash will benefit from this reduction."

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK

"Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of U.S. tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

"This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers."

DEVARSH VAKIL, HEAD OF PRIME RESEARCH, HDFC SECURITIES

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

"Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth."

SUDARSHAN VENU, CHAIRMAN, TVS MOTOR COMPANY

"The GST tax cuts are a major move by the government to further turbocharge growth. For our industry especially, it’s a welcome move as it will help two wheelers become more accessible and also help those looking to upgrade."

NEERAJ AKHOURY, PRESIDENT, CEMENT MANUFACTURERS' ASSOCIATION AND MANAGING DIRECTOR, SHREE CEMENT

"Bringing GST down to 18% corrects a long-standing anomaly, aligns cement with other core building materials, and enhances global competitiveness. As a key input for infrastructure and housing, fairer taxation is expected to boost consumption and support projects from affordable housing to large-scale infrastructure."

NITIN RAO, CEO, INCRED WEALTH

"History has shown that such measures add significantly to GDP growth and a repeat is expected.

"Positive this will play out, though a small concern remains wherein recent measures like the rate cuts + budgetary measures taken on reduced taxes have not created necessary consumption boosters. We will have to wait and see if this welcome third step reverses the consumption trend or there is a deeper problem around availability of money with consumers."

RAHUL SINGH, CIO-EQUITIES, TATA ASSET MANAGEMENT

"The GST rate rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook.

"This coupled with certain process reforms is also positive for SMEs (small and medium enterprises). While the direct beneficiaries include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs (non-bank financial companies)."

RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP

"By lowering input costs for farmers, simplifying compliance for MSMEs (micro, small and medium enterprises), and enabling small sellers, artisans/weavers and smallholder farmers to seamlessly join e-commerce across states, these reforms will further strengthen India's growth engine.

"Timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate our collective journey towards a Viksit Bharat."

SHEETAL ARORA, CEO, MANKIND PHARMA

"The GST revisions go beyond tax rationalization, they represent a structural shift in how India is enabling healthcare access. By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signaled that affordability and innovation can go hand in hand."

AMIT PAITHANKAR, CEO OF WAAREE ENERGIES

"The recent GST rationalization reflects the government’s commitment to India’s clean energy transition. The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector."

(Reporting by Chandini Monnappa, Bharath Rajeswaran, Manvi Pant, Kashish Tandon, Meenakshi Maidas, Nandan Mandayam, Yagnoseni Das, Vivek Kumar M and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 25 (Reuters Breakingviews) - A small paradox is gripping India's capital markets. The rise of institutional investors is pushing down overall shareholding levels of powerful private backers of companies, including tycoons. But other indicators point to this cohort's growing influence in the $4 trillion economy.

So-called promoter shareholdings in public firms fell to 40.58%, an eight-year low, per an analysis by PRIME Database of 2,086 companies listed on the main board of the National Stock Exchange. Over the past three years, promoters' share has fallen by 455 basis points, the research shows.

The quirky term is rooted in post-independence India's encouragement of entrepreneurs to promote local enterprise and describes owners that have large sway over the affairs of a company. These days, it assumes a mildly pejorative edge, making private banks and startups flaunt their lack of promoters as shorthand for good governance.

One reason for the rapid fall in their holdings from a peak of 45% in 2022 is an increase in listings of companies backed by financial sponsors like $32 billion food delivery firm Eternal ETEA.NS and its rival Swiggy SWIG.NS.

Older behemoths are warming up to external capital, too, though tycoons are hawking minority stakes in unlisted businesses. Mukesh Ambani's Reliance Industries RELI.NS sold shares in its retail and telecom units to investors from Meta META.O to KKR KKR.N in 2020 to cut debt, and Tata Motors TAMO.NS had TPG TPG.O jump in as a backer of its electric-vehicle unit in 2021.

Yet the reality on the ground suggests a tightening, not loosening, of their control. As global companies enter India, promoter-backed businesses are emerging as partners of choice. Fast fashion giant Shein has entered an alliance with Reliance Industries, and MG Motor has teamed up with Sajjan Jindal-backed JSW.

It's a result of New Delhi's protectionist policies and entrants' desire to scale up fast, but also a growing perception that it is not possible to win against the top domestic industrialists. M&A by large groups is reducing competition, too; Adani's Ambuja Cements ABUJ.NS and UltraTech ULTC.NS owner Kumar Mangalam Birla are rearranging the country's cement industry into a duopoly.

In fact, India Inc.'s shunning of leverage since the pandemic reduces the necessity of large owners to dilute their equity. Promoter entities own 50.07% of Reliance and up to 75% in each of the 10 listed Adani Group companies. The position of India's most powerful promoters is far from getting demoted.

Follow Shritama Bose on Linkedin and X.

CONTEXT NEWS

Stakes held by powerful private shareholders, known as promoters, in large Indian companies have fallen to an eight-year low in India.

Such shareholdings on the main board of the National Stock Exchange fell to 40.58% in June, per an analysis of 2,086 companies by PRIME Database.

Over the past three years, promoters' share has fallen by 455 basis points from 45.13% on March 31, 2022, the research shows.

(Editing by Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Repeats story from August 14 without changes

By Aditya Kalra

NEW DELHI, Aug 14 (Reuters) - Publicis has sued India's antitrust watchdog for denying access to case files in a high-profile price-fixing investigation of ad agencies, after the French group failed to get the probe stalled until it could review the documents, court filings show.

The Competition Commission of India (CCI) shook India's near-$30 billion media and entertainment sector in March with dawn raids at WPP's WPP.L GroupM, Dentsu 4324.T, Publicis PUBP.PA, Omnicom OMC.N and many other agencies over suspected collusion over publicity rates and discounts.

Details of cartel cases are kept confidential in India, but Reuters has reported that the CCI's initial assessment found the firms used a WhatsApp group to coordinate and agree on pricing, entered into secret pacts, and colluded with broadcasters to deny business to agencies that didn't comply.

Concerned the CCI has not responded to its requests in recent months to provide access to case files, Publicis approached the Delhi High Court on August 11 asking judges to order the watchdog to accede to its requests, according to its non-public filing reviewed by Reuters on Thursday.

Publicis and its employees in India are "unable to understand the allegations against them and prepare a defence in the absence of the case records", it said in the filing.

The CCI did not respond to Reuters queries, and the court is likely to hear Publicis' case next week.

The filing was made by TLG India, which its court papers said "is the legal entity that houses majority of the advertising business of the Publicis group in India".

The antitrust investigation was triggered by Dentsu disclosing alleged industry malpractices to the CCI in February 2024 under the regulator's leniency program, which allows lesser penalties for firms that share evidence of malpractice.

Publicis is the first company to file a lawsuit related to the high-profile CCI investigation in court.

Filings showed the company urged the CCI in July that "further investigation remain in abeyance till" it is granted inspection of case records.

CCI investigations typically take several months. The regulator has powers to impose financial penalties on the media agencies of up to three times their profit or 10% of an Indian entity's global turnover, whichever is higher, for each year of wrongdoing.

Publicis' court filing also showed the CCI in July asked for a brief note from the company about its business model, and how operations are coordinated with the parent entity.

On August 4, the CCI issued summons to Publicis' South Asia chief Anupriya Acharya to appear before investigators, and provide documents such as copies of key contracts involving Publicis and its Indian entities, including on revenue sharing.

Acharya did not respond to Reuters queries, and Publicis has asked the court to quash the summon.

(Reporting by Aditya Kalra; editing by Giles Elgood)

((Email: [email protected]; X: @adityakalra;))

By Aditya Kalra

NEW DELHI, Aug 14 (Reuters) - Publicis has sued India's antitrust watchdog for denying access to case files in a high-profile price-fixing investigation of ad agencies, after the French group failed to get the probe stalled until it could review the documents, court filings show.

The Competition Commission of India (CCI) shook India's near-$30 billion media and entertainment sector in March with dawn raids at WPP's WPP.L GroupM, Dentsu 4324.T, Publicis PUBP.PA, Omnicom OMC.N and many other agencies over suspected collusion over publicity rates and discounts.

Details of cartel cases are kept confidential in India, but Reuters has reported that the CCI's initial assessment found the firms used a WhatsApp group to coordinate and agree on pricing, entered into secret pacts, and colluded with broadcasters to deny business to agencies that didn't comply.

Concerned the CCI has not responded to its requests in recent months to provide access to case files, Publicis approached the Delhi High Court on August 11 asking judges to order the watchdog to accede to its requests, according to its non-public filing reviewed by Reuters on Thursday.

Publicis and its employees in India are "unable to understand the allegations against them and prepare a defence in the absence of the case records", it said in the filing.

The CCI did not respond to Reuters queries, and the court is likely to hear Publicis' case next week.

The filing was made by TLG India, which its court papers said "is the legal entity that houses majority of the advertising business of the Publicis group in India".

The antitrust investigation was triggered by Dentsu disclosing alleged industry malpractices to the CCI in February 2024 under the regulator's leniency program, which allows lesser penalties for firms that share evidence of malpractice.

Publicis is the first company to file a lawsuit related to the high-profile CCI investigation in court.

Filings showed the company urged the CCI in July that "further investigation remain in abeyance till" it is granted inspection of case records.

CCI investigations typically take several months. The regulator has powers to impose financial penalties on the media agencies of up to three times their profit or 10% of an Indian entity's global turnover, whichever is higher, for each year of wrongdoing.

Publicis' court filing also showed the CCI in July asked for a brief note from the company about its business model, and how operations are coordinated with the parent entity.

On August 4, the CCI issued summons to Publicis' South Asia chief Anupriya Acharya to appear before investigators, and provide documents such as copies of key contracts involving Publicis and its Indian entities, including on revenue sharing.

Acharya did not respond to Reuters queries, and Publicis has asked the court to quash the summon.

(Reporting by Aditya Kalra; editing by Giles Elgood)

((Email: [email protected]; X: @adityakalra;))

** Shares of India's food and grocery delivery platform Swiggy SWIG.NS rise 2.8% to 396 rupees

** Swiggy has initiated the process of divesting its stake of around 12% in startup Rapido, local news website Moneycontrol reports citing sources

** Swiggy plans to fully exit its investment in the ride-hailing platform firm, targeting 25 bln rupees ($285.2 mln) from the sale

** Swiggy and Rapido did not immediately respond to Reuters requests for comments

** Stock down ~29% YTD

($1 = 87.6740 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

** MSCI likely to add India's Vishal Mega Mart VSSL.NS, Swiggy SWIG.NS, Hitachi Energy HITN.NS and Waaree Energies WAAN.NS to its standard index as part of August rejig, says Nuvama

** Believes Sona BLW SONB.NS and Thermax THMX.NS could be dropped from index

** Nuvama expects MSCI to add 12 Indian firms to its smallcap index, while removing four

** Index provider scheduled to announce quarterly index review on August 8, changes to take effect on August 26

** SWIG down 2.4% and VSSL up 2.3% on day

(Reporting by Vivek Kumar M)

(([email protected];))

** Shares of India's Swiggy SWIG.NS down 2.6% to 393.45 rupees

** Instamart parent's June-quarter loss nearly doubles on higher marketing spends

** CLSA ("outperform") says while SWIG is forecast to hit contribution margin break-even between Q3 FY26 and Q1 FY27, the results did not demonstrate a clear path to meet this target

** Brokerage cuts PT on SWIG to 473 rupees from 500 rupees

** Meanwhile, Morgan Stanley ("overweight," PT: 450 rupees) says SWIG's weaker pace of store additions vs rival Eternal's ETEA.NS Blinkit worries investors

** JP Morgan ("overweight") says SWIG's margin contraction was a disappointment, adding that co's cash burn is a concern

** JPM cuts PT on stock to 476 rupees from 500 rupees

** YTD, SWIG down 28% vs ETEA's 10.4% climb

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

July 31 (Reuters) - Swiggy Ltd SWIG.NS:

• Q1 CONSOL NET LOSS 11.97 BILLION RUPEES

• Q1 CONSOL REVENUE FROM OPERATIONS 49.61 BILLION RUPEES

Source text: [ID:]

Further company coverage: SWIG.NS

(([email protected];;))

Adds details, background from paragraph 2 onwards

July 22 (Reuters) - Indian online delivery firm Eternal ETEA.NS jumped nearly 15% on Tuesday after the parent of Zomato and Blinkit reported robust quarterly revenue, lifting expectations for continued growth in its quick-commerce business.

Blinkit, which promises everything from salt to iPhones in under 10 minutes, is widely seen as the front-runner by analysts despite growing pressure from players such as BigBasket, Flipkart, Swiggy SWIG.NS and Amazon AMZN.O.

"We overestimated the competitive threat," analysts at Jefferies said, citing the unit's growth, improved margins and expectations of higher growth in the future.

At least ten brokerages hiked price targets on the stock after results, while at least four upgraded ratings, data compiled by LSEG showed.

The median price target on the stock has risen to 311 rupees from 287.5 rupees a month ago, the data showed.

Shares of the company rose 14.6% to 311.25 rupees as of 9:42 a.m. IST and were the top gainer on benchmark Nifty 50 index .NSEI, which trading flat.

Shares of rival Swiggy were up 5.3% on the day.

Eternal's food delivery business, Zomato, is its profitable arm and has historically contributed the larger share of revenue, but Blinkit is closing the gap fast.

Analysts at Nuvama said Blinkit "outshines on growth", as Eternal's quick commerce business posted a 127% on-year rise in net order value at 92.03 billion rupees ($1.07 billion), surpassing growth at its food-delivery business for the first time.

($1 = 86.2270 Indian rupees)

(Reporting by Manvi Pant; Editing by Nivedita Bhattacharjee)

(([email protected]; +918447554364;))

July 21 (Reuters) - Indian online delivery firm Eternal ETEA.NS posted a 90% drop in first-quarter profit on Monday, weighed by higher costs at its quick-commerce arm Blinkit, which delivers everything from groceries to electronics in under 10 minutes.

Consolidated net profit fell to 250 million rupees ($2.90 million) for the three months ended June 30, the food and grocery delivery firm said.

($1 = 86.2775 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Sumana Nandy and Chandini Monnappa)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, July 9 (Reuters Breakingviews) - India’s food delivery duopoly is brushing off the imminent entry of a low-fee champion. Shares of $28 billion Eternal ETEA.NS, formerly known as Zomato, and Swiggy SWIG.NS, have recovered since early June when Rapido’s intention to slash food delivery charges was reported by local media. But the industry is ripe for disruption.

Rapido, which began life as a bike taxi firm a decade ago, aims to nearly halve the duo's “take rates” - the percentage of the total transaction value the companies keep as revenue for facilitating orders and deliveries, usually commissions paid by restaurants or delivery charges by customers. Zomato and Swiggy's at 24.4% and 21.9% respectively are much higher than global peers, per HSBC, easily besting China’s Meituan's 3690.HK 16.1%.

To be sure, other mobility providers have tried and failed to muscle into food delivery. Rapido, though, has chipped away at Ola and Uber’s grip on ride-hailing by focusing on affordability. It has captured a majority share of the bike taxi market, 33% of three-wheelers, and near-20% of four-wheelers, according to Motilal Oswal, a brokerage. The company's latest fundraising round valued it at $1.1 billion and it is profitable on an EBITDA basis. Now it wants to utilise its 4 million rider network to deliver meals outside of peak travel hours.

Besides inviting new competition, India’s high take rates may explain why industry growth is slowing. Take Eternal. Food delivery is its biggest business, accounting for 38% of its top line. But the segment's gross order value grew just 16% year-on-year in the quarter ended March and 17% in the December quarter - missing the company's own guidance of 20%.

The company led by Deepinder Goyal charges an average take rate of about 24%, per Visible Alpha, enough to generate a profit per order. If Eternal adopts a similar rate as Meituan, its adjusted food delivery revenue would drop by about one-third, according to Breakingviews' calculations. That would make it harder for Eternal to support its other loss-making businesses, including quick commerce.

Swiggy may ultimately share in any success of Rapido if the upstart defies expectations. It owns about 13% of its wannabe rival and both share Dutch investor Prosus PRX.AS as a backer. For now, Rapido's entry was the subject of the first question Swiggy CEO Sriharsha Majety faced at Prosus’ Capital Markets Day late last month. A high-fee business model in a price-sensitive country will keep the market on edge.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Ride-hailing startup Rapido is set to roll out a pilot of its food delivery service, Ownly, in Bengaluru this week, The Economic Times reported on July 2, citing people directly aware of the developments.

The firm is planning to charge restaurant commissions in the 8-15% range, the report added.

(Editing by Una Galani; Production by Aditya srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

July 3 (Reuters) - Swiggy Ltd SWIG.NS:

• CITIGROUP GLOBAL MARKETS MAURITIUS SELLS 320,421 SHARES OF INDIA'S SWIGGY AT 381 RUPEESPER SHARE VIA BLOCK DEAL - EXCHANGE DATA

Source text: [ID:]

Further company coverage: SWIG.NS

(([email protected];;))

** Food and grocery delivery platform Swiggy SWIG.NS up 2.2% to 399.85 rupees

** About 874,486 Swiggy shares changed hands in three block deals priced between 395 and 400.5 rupees per share, as per data compiled by LSEG

** Block deals at nearly 1%-2.4% premium on last closing price of 391.15 rupees

** YTD - SWIG down 26%, rival Zomato-parent Eternal ETEA.NS down 7%

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

June 20 (Reuters) - Indian courier delivery firm Delhivery DELH.NS launched its short-haul parcel transport service in two locations on Friday, ramping up competition in a market dominated by the likes of Uber UBER.N and Kedaara Capital-backed Porter.

Near-distance parcel delivery - often within city limits - has grown increasingly popular, following the success of quick-commerce delivery services, where everything from milk to mobile phones is delivered within 10 minutes.

Currently, Uber, Swiggy SWIG.NS-backed ride-hailing app Rapido and Porter are among firms that ferry parcels from one area of a city to another.

Delhivery's service is currently live only in the national capital region and the southern IT hub of Bengaluru, but the company aims to rapidly expand to other key metro cities, MD and CEO Sahil Barua said in a statement.

Third-party logistics firms, including Delhivery, have been looking for options to diversify as their mainstay long-haul freight businesses battle intense competition from in-house logistics arms of e-commerce giants such as Amazon AMZN.O and Walmart WMT.N-backed Flipkart.

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman)

(([email protected]; X: @MukherjeeHritam;))

By Aditya Kalra

NEW DELHI, June 19 (Reuters) - Omnicom Media's India chief was frustrated. It was October 5, 2023 and a rival was trying to poach the U.S. firm's client by offering lower prices, just weeks after global advertising agencies and broadcasters struck secret pacts on ad rates in the South Asian country.

The attempt to woo the client violated the agencies' agreement, Omnicom Media's India CEO Kartik Sharma wrote in a WhatsApp group comprising a who's who of advertising, according to excerpts of the discussion documented by antitrust investigators and verified by Reuters.

"This kind of practice is not in the spirit of what we are collectively trying to achieve," Sharma wrote, without identifying the parties.

Shashi Sinha, then India CEO of New York-based IPG Mediabrands, suggested an industry group should "admonish the agency".

The exchanges form part of a confidential dossier compiled by India's antitrust watchdog that chronicles how global advertising companies, including leading U.S. and European firms, coordinated to rig prices in the world's most populous nation.

Reuters reviewed evidence from the Competition Commission of India (CCI) investigation, including a 10-page document with messages and records of meetings between top advertising executives, and two industry agreements under scrutiny for antitrust violations; and interviewed two people familiar with the probe.

The key details, which haven't been previously reported, centre on WhatsApp interactions involving 11 industry executives. They include the top India or South Asia executives of WPP's WPP.L GroupM; U.S.-based Omnicom Media OMC.N and Interpublic's IPG.N IPG Mediabrands; France's Publicis PUBP.PA and Havas Media HAVAS.AS; Japan's Dentsu 4324.T and India's Madison World.

Over WhatsApp and in meetings, the executives coordinated responses to clients, which "resulted in alignment of competing advertising agencies," CCI officials said in the August 9 dossier, determining on an initial basis that the conduct contravened competition law.

The firms agreed to cooperate on pricing, including not to undercut each other; colluded with broadcasters to deny business to agencies that didn't comply; and discussed financial terms involving at least four Indian clients over conference calls, according to the investigation documents.

The documents don't indicate whether the agencies' foreign headquarters were aware of the executives' actions.

A spokesperson for WPP Media, which until May was known as GroupM, told Reuters it was aware of the investigation but declined to comment further.

A Dentsu India spokesperson confirmed Reuters reporting that it had disclosed industry practices to the CCI in February 2024 under the regulator's leniency program, which enables lesser penalties for firms that share evidence of malpractice. The spokesperson didn't address specific evidence raised in the dossier but said the firm had implemented stricter audits and controls.

The other agencies and their executives didn't respond to Reuters questions about the antitrust probe and information in the dossier. The regulator also didn't respond to queries.

Reuters has reported that in March, as part of the continuing investigation, the regulator raided the Indian offices of many advertising firms and an industry group that represents broadcasters, including the Reliance-Disney venture and Sony 6758.T.

CCI investigations typically take several months. The regulator can't press criminal charges, but can impose financial penalties on the media agencies of up to three times their profit or 10% of an Indian entity's global turnover, whichever is higher, for each year of wrongdoing.

SECRET PACTS

WPP Media, the world's largest media buying agency, last year - when it was still known as GroupM - won new India business worth $447 million, followed by Omnicom's $183 million, according to research firm COMvergence.

But India's near-$30 billion media and entertainment sector is grappling with weak consumer sentiment. Ad spending will rise 7% to $19 billion in 2025, the slowest growth in three years, according to GroupM estimates.

The CCI is investigating the role of two industry bodies, the Advertising Agencies Association of India (AAAI) and the Indian Broadcasting & Digital Foundation (IBDF), in orchestrating the suspected cartel.

The former group is led by WPP Media India head Prasanth Kumar, while the broadcasting body's president is Kevin Vaz, a top Reliance-Disney venture executive. Neither industry group responded to requests for comment.

The dossier shows the AAAI circulated guidelines to ad agencies in August 2023: They must charge clients whose annual spending exceeds $29 million a minimum 3% commission for digital ads and 2.5% for traditional media. Lower-spending clients would pay higher minimum commissions of up to 8%.

A month later, the industry associations entered a joint pact, agreeing no agency would "unilaterally offer any discount" on rates while pitching for business.

The pact, reviewed by Reuters, declared its aim was to eliminate "lower pricing as a reason to award a pitch".

The advertising firms began coordinating their activities at least as early as August 2023, according to the CCI documents.

Ad executives who met on December 1 that year hailed their collaboration as a "great success" and resolved to continue, according to meeting minutes cited in the CCI's evidence.

'ALL ALIGNED'

In the U.S., the Federal Trade Commission this month sought information from advertising agencies as part of a probe into whether they coordinated boycotts of certain sites. The Justice Department in 2016 probed agencies it suspected of rigging bids to favour in-house units, but eventually closed the case without bringing charges.

Brewer Anheuser-Busch InBev used CCI's leniency program to blow the whistle on an industry cartel in India in 2017.

In the case of the ad industry, Dentsu India told Reuters it filed its leniency application with the CCI not as a reaction to external pressure but out of a decision to "support reform from within".

Two people with knowledge of the matter told Reuters the evidence Dentsu submitted included a transcript of the WhatsApp group. The group, formed in August 2023 and reviewed in part by Reuters, was named "AAAI media agencies" and contained scores of chat messages.

Participants included Kumar of WPP's media company, Sharma of Omnicom Media, IPG Mediabrands' Sinha, Havas Media India CEO Mohit Joshi, Dentsu South Asia CEO Harsha Razdan and then-media business CEO Anita Kotwani, Publicis South Asia chief Anupriya Acharya and Madison boss Sam Balsara, the investigators' evidence shows.

Members of the group discussed advertising pitches and coordinated on interactions with clients such as food delivery giant Swiggy SWIG.NS, drug maker Cipla CIPL.NS, SoftBank-backed e-commerce firm Meesho, and Kshema Insurance.

In Swiggy's case, the AAAI arranged a Zoom call with media agency heads to discuss the company's advertising pitch. Later, GroupM's Kumar, as AAAI president, suggested an email response to Swiggy explaining the industry's agreed position on rebates.

"Ok all aligned thanks," he wrote after a consensus emerged.

Kshema told Reuters the insurer was unaware of the matter. The other clients didn't respond to questions.

During another discussion on client rebates, an unspecified Dentsu executive told rivals over WhatsApp that "the lowest we go to is retain 30% and 70% we pass back to the client," according to the CCI dossier.

CCI officials noted in the document that advertisers and the broadcasters' group had sought to penalise enterprises that didn't comply with the pricing pacts.

In an email to Walt Disney DIS.N in August 2023, Kumar wrote that broadcasters should refrain from granting business to a firm that had breached the pacts, ITW Consulting, though he said it had later agreed not to approach clients directly.

ITW didn't respond to Reuters questions.

Tensions heated up again over WhatsApp three months later.

Sharma, of Omnicom Media, learned that ITW had done another "direct deal with a client of ours" for advertising on streaming platform Hotstar, which was run by Disney.

This irked Sharma, as Hotstar had the rights for the cricket World Cup held in India at the time.

"This nuisance has to stop," he wrote in the group.

(Reporting by Aditya Kalra in New Delhi; additional reporting by Jody Godoy in New York and Munsif Vengattil in Bengaluru; editing by David Crawshaw.)

((Email: [email protected]; X: @adityakalra;))

** Amazon's AMZN.O "Now" will need to scale up more to become a "meaningful player" in the Indian quick-commerce sector, according to Jefferies

** Brokerage says Amazon's venture is in its "early days" and although it does go fairly well beyond grocery and offers high discounts, it trails incumbents

** Quick-commerce has become mainstream, with some places seeing as many as six different platforms - Jefferies

** Keeping an eye on emerging rivals would be important for Zomato-parent Eternal ETEA.NS and Swiggy SWIG.NS too, Jefferies adds

** On Monday, ETEA up 0.8% to 251 rupees, SWIG gains 1.9% to 361 rupees

** Eternal's "Blinkit" and Swiggy's "Instamart" compete with IPO-bound Zepto, Walmart WMT.N-backed Flipkart's "Minutes" and Tata-owned BigBasket

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

The authors are Reuters Breakingviews columnists. The opinions expressed are their own. Refile to remove hyperlink in Context News.

By Shritama Bose and Ujjaini Dutta

MUMBAI/BENGALURU, June 11 (Reuters Breakingviews) - The hottest corner of India's e-commerce market is running on fumes. Nexus Venture Partners-backed Zepto, the money-losing startup that delivers everything from onions to speakers in 10 minutes, is deferring plans to go public by a year as it struggles to cut costs, news website Moneycontrol reported last week. Rival offerings from Eternal ETEA.NS, formerly Zomato, and Swiggy SWIG.NS are bleeding cash too. The sensible - and likely - next move for all three would be to stop offering ultra-quick deliveries at all.

The combination of densely populated cities like Mumbai and New Delhi plus abundant cheap labour made it look possible that India could pull off a delivery model that has failed elsewhere, and spawned an industry Bernstein estimates is worth $10 billion. As the top player in the space with a 43% share by monthly active users, Zepto looked like a winner. Its valuation nearly quadrupled to $5 billion in the 12 months to August 2024.

Almost a year on, the euphoria looks hard to sustain. Adjusted EBITDA losses at Swiggy's Instamart and Eternal's Blinkit widened in the first three months of this year due to an aggressive expansion of so-called dark stores that also act as mini-warehouses. More spending is underway: HSBC expects Zepto to increase its dark stores by 18% to 1,000. Competition is intensifying too: Tata group-backed BigBasket is entering the 10-minute food delivery space, going up against Blinkit's Bistro and Zepto's Cafe, Reuters reported on Tuesday.

It's not clear if and when 10-minute deliveries can turn a sustainable profit. At least Swiggy and Eternal have other businesses to cushion the blow. But for Zepto, which will struggle to replicate its model beyond big cities, the pressure to stem its losses is mounting. Founders Aadit Palicha and Kaivalya Vohra are eyeing the high-yield loan market and say the company will be close to breaking even on EBITDA and operating cash flow in three months.

Meanwhile, public market investors are pickier. Electric-scooter maker Ather Energy ATHR.NS and Brookfield-backed luxury hotel chain Schloss Bangalore SCHL.NS had weak trading debuts despite downsized offers. Investors' patience with unprofitable startups is running thin after Ola Electric Mobility's OLAE.NS disastrous run since its August listing. Shares of Eternal and Swiggy are down by up to a third this year, while the benchmark Nifty 50 Index .NSEI has risen.

All this should be enough to prompt a serious rethink of whether it's worth trying to deliver someone an onion, or anything else, in under 10 minutes.

Follow Shritama Bose on LinkedIn and X and Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Tata group-backed grocery delivery service BigBasket plans to launch 10-minute food delivery services by the end of March 2026, co-founder Vipul Parekh told Reuters on June 10.

Online quick commerce startup Zepto has pushed back its plan to go public in India by a year to 2026, news website Moneycontrol reported on June 4, citing unnamed people aware of the development.

(Editing by Robyn Mak; Production by Aditya Srivastav)

((For previous columns by the authors, Reuters customers can click on BOSE/[email protected]; DUTTA/[email protected]))