Intensifying competition in India’s online grocery delivery space is weighing on the shares of market leader Eternal Ltd. and its listed rival Swiggy Ltd.

Eternal’s shares dropped nearly 4% last week to their lowest level in three months on rising rivalry from Amazon.com Inc. and Flipkart India Pvt. Swiggy’s stock also declined for a fourth week as quick-commerce firms, which promise to deliver in 10 minutes, ramp up discounting.

The heated discount war is raising concerns that profitability for India’s delivery firms may remain under pressure after second-quarter earnings missed estimates and companies signaled focus on growth over margins. Show Full Article

That can potentially weigh on investor sentiment ahead of Swiggy’s planned follow-on share sale of over $1 billion and Zepto Pvt.

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