Stock Market Slump Hits New-Age Tech Firms in 2025: Zomato, Swiggy, and Others Deep in the Red

The Indian stock market in 2025 has not been kind to new-age tech companies, as several high-profile digital players continue to bear the brunt of the broader market correction. From food delivery giants to quick commerce upstarts, these firms have seen a significant erosion in their market capitalization since the beginning of the year, with their shares plummeting between 11% and nearly 60% year-to-date.

Zomato Takes a Hit Amid Quick Commerce Competition

One of the most prominent names among the affected is Zomato, led by CEO Deepinder Goyal. The company’s stock has fallen sharply—by around 26% since January 2025. On Monday, Zomato’s shares closed at ₹209.75 on the BSE, marking a 0.43% drop for the day. Despite being a bellwether in India’s digital economy, the company has been caught in the crossfire of an increasingly intense battle in the quick commerce segment.

Zomato’s quick commerce arm, Blinkit, is now locked in a fierce race against Swiggy’s Instamart and Zepto—a competition that is pushing each player to expand aggressively while squeezing margins. Goyal, in an earlier interview, had acknowledged that the food delivery segment is witnessing a slowdown, further denting investor sentiment around the company’s profitability. As pressure mounts from both competition and a cautious consumer environment, Zomato’s future growth trajectory has become a topic of concern among analysts and investors alike.

Swiggy Feels the Heat as IPO Plans Stall

Swiggy, Zomato’s closest rival, is facing a similar fate. Although not yet listed, Swiggy’s pre-IPO valuation has reportedly taken a hit, with secondary market trading indicating reduced investor interest. The slowdown in the food delivery space has also affected Swiggy’s quick commerce business, which once appeared poised to be a significant growth engine.

Industry insiders note that investor appetite for tech IPOs has significantly waned amid market uncertainty, forcing companies like Swiggy to delay their listing plans and focus on cost rationalization instead. The sentiment reflects a broader risk-off mood on Dalal Street, especially when it comes to companies that are still in the investment-heavy, profitability-later phase.

Startup Stocks Struggle Across the Board

It’s not just food delivery or commerce that’s feeling the pinch. A slew of other new-age tech companies, many of which once commanded premium valuations based on growth potential, have seen their stock prices tumble amid tightening liquidity, recession fears, and investors rotating into more stable, cash-generating businesses.

From edtech firms to fintech startups, the market’s shift toward fundamentals and earnings visibility has exposed vulnerabilities in many business models. Some companies have struggled to meet aggressive growth targets, while others are facing regulatory or operational hurdles that are compounding the pressure.

Why Investors Are Wary of New-Age Tech

Analysts believe that the broader stock market downturn, coupled with a more cautious global macroeconomic environment, is forcing investors to rethink their exposure to high-risk assets. Unlike established IT and financial companies, new-age tech firms often operate with thin margins, rely heavily on capital to sustain growth, and remain sensitive to shifts in demand and competition.

As investor focus sharpens on profitability, scalability, and sustainability, startups that were once market darlings are now facing increased scrutiny.

The Road Ahead: Adapt or Lag Behind

Despite the current headwinds, experts say the correction could ultimately serve as a wake-up call for the sector. Companies that can streamline operations, enhance efficiency, and show a clear path to profitability are more likely to bounce back when market sentiment improves.

For now, however, the gloom persists on Dalal Street when it comes to new-age tech stocks. With rising competition, changing consumer behavior, and tighter capital markets, the pressure is on for these companies to evolve—and fast.