Swiggy shares plunge 17% to hit fresh lows amid market downturn

Swiggy's shares extended their weakness on Thursday with a sharp 17% decline, marking another challenging session for the food delivery platform following its November listing on Indian exchanges.

The steep fall has pushed the stock to new lows, trading 70% below its record high registered shortly after the IPO. The deterioration in valuations reflects broader investor concerns about profitability and unit economics in the competitive food delivery market.

The shares are currently trading approximately 55% below Swiggy's IPO price, signalling significant disappointment among those who participated in the initial public offering. The decline raises questions about the sustainability of Swiggy's business model as the company continues efforts to achieve profitability amid intense competition.

The stock's sharp losses come as investors reassess valuations across the Indian technology and consumer services sectors following a period of strong market performance earlier in the year. Market analysts suggest that the sharp correction reflects changing investor sentiment toward high-growth companies with elevated valuations.