India’s online food delivery sector has returned to a strong growth trajectory, with leading platforms Swiggy, Zomato and magicpin reporting a sharp rebound in order volumes during the October–December quarter, driven by festive demand, affordability-led offers and expansion into smaller cities.
Industry executives say the recovery comes after a period of slower expansion and expect the momentum to continue in the coming quarters, supported by higher marketing spends, product innovation and value-focused pricing strategies aimed at increasing order frequency.
The October–December period, which includes the festive season, proved to be a turning point for the sector as consumers increased spending on food delivery, dining deals and quick-serve meals. Companies reported stronger engagement across both metro markets and emerging urban centres.
According to company statements, the latest quarter saw improved execution, higher user activity and better unit economics, indicating that the sector is stabilising after a phase of cautious growth.
magicpin Founder and CEO Anshoo Sharma said the company recorded one of its strongest quarters, with significant improvement in order-level profitability and monetisation. He noted that while mature markets such as Delhi-NCR remained stable, cities like Bengaluru, Hyderabad and Mumbai recorded over 40% growth in gross order value.
He added that affordability-driven consumption remains a major growth engine, with average order values in the ₹150–₹300 range encouraging users to place orders more frequently.
Swiggy reported a 20.5% year-on-year rise in gross order value (GOV) to ₹8,959 crore in the December quarter, marking its fastest growth in the past three years. The company attributed the acceleration to stronger adoption of new offerings focused on speed, wider selection and lower price points.
The platform’s average monthly transacting users increased 22% year-on-year to 24.3 million, while total orders rose to 294 million during the quarter, compared to 234 million in the same period last year.
The company said continued investments in customer acquisition, delivery efficiency and promotional campaigns helped drive higher order frequency.
Zomato sees an improving growth trend
Zomato’s food delivery business also reported stronger performance in the December quarter, with net order value rising 16.6% year-on-year to ₹9,846 crore, translating into 21.3% growth in gross order value.
The improvement marks an acceleration from the previous quarter, signalling that demand is picking up again after a period of moderation. The company’s monthly transacting user base grew 21% year-on-year to 24.9 million, reflecting the steady expansion of its customer base.
Executives said the company is seeing increasing traction from value-focused offerings and improved delivery experience, which are helping retain users even as competition intensifies.
Tier-II and III cities driving next phase of growth
Industry insiders say a significant portion of the recent growth is coming from tier-II and tier-III cities, where affordability-led deals, discounts and combo offers are attracting new users to food delivery platforms.
Lower ticket sizes but higher order frequency in these markets are helping companies maintain growth even as metro markets mature. Companies are also investing in regional restaurant partnerships, localised menus and targeted marketing campaigns to tap demand beyond large urban centres.
With continued focus on pricing, speed and convenience, the sector expects order growth to remain strong in the coming quarters, signalling that India’s food delivery market is entering its next phase of expansion after a brief slowdown.