India’s online food delivery sector regained momentum in the October–December quarter, with market leaders Zomato and Swiggy reporting gross order value (GOV) growth of over 20%, surpassing both internal forecasts and analyst expectations.
Zomato posted a 21.3% year-on-year rise in gross order value during the quarter, while Swiggy reported a 20.5% increase—marking the first time in eight quarters that both platforms crossed the 20% growth threshold. The companies had earlier guided for medium-term growth in the 18–20% range.
The rebound comes amid a renewed push to expand user bases, particularly among price-sensitive and low-order-value customers. Both firms are increasingly targeting budget-conscious consumers and health-focused diners, segments that are emerging as key drivers of incremental demand.
Swiggy has scaled its “99-store” initiative, offering items priced below ₹99, and expanded Bolt, its quick-delivery service. Together, these formats account for more than a fifth of its food delivery volumes. Zomato, meanwhile, has lowered the minimum order value for free delivery under its Gold loyalty programme from ₹199 to ₹99 and introduced curated “under ₹250” menus aimed at value seekers.
Industry executives said affordability has been a major growth lever, with a large portion of recent expansion coming from customers placing orders in the ₹100–200 range. After prioritising profitability and focusing on higher-value cohorts in recent years, both platforms now appear to be leveraging improved margins to step up user acquisition.
Financially, the December quarter remained strong for both companies. Zomato reported adjusted EBITDA of ₹531 crore, up 25% year-on-year, while Swiggy’s food delivery business saw adjusted EBITDA rise 48% to ₹272 crore. The platforms have also gradually increased the customer-facing platform fee—introduced at ₹1 in 2022 and raised to ₹15 by October 2025—adding to profitability.
Food delivery continues to be the primary profit engine for both companies, even as they invest heavily in quick commerce. For the quarter, Zomato held a 57.3% market share, compared with Swiggy’s 42.7%, with the Gurugram-based firm gaining marginal ground over recent quarters.
Monthly transacting users (MTUs) also expanded steadily, rising 21.5% to 24.9 million for Zomato and 18.1 million for Swiggy.
The improved performance comes as new challengers eye the sector. Urban mobility firm Rapido is expanding its food delivery vertical Ownly beyond Bengaluru, while ecommerce major Flipkart is evaluating a pilot entry into online food delivery later this year.
India’s online food delivery market, estimated at around $9 billion in FY25, is projected to grow to $25 billion by FY30, according to brokerage estimates. Analysts say the recent acceleration in order growth strengthens the incumbents’ ability to invest in pricing, loyalty and incentives while reinforcing network effects with restaurants and delivery partners.
While experiments in ultra-fast-food delivery have largely been scaled back due to high costs and weaker repeat demand, the core marketplace model appears to be stabilising. The December quarter’s growth revival signals renewed headroom for user expansion as competition intensifies in India’s fast-evolving food tech landscape.