Restaurant India News: Zomato Parent Eternal Builds Rs 18,857 Crore War Chest, Outpaces Swiggy in Cash Reserves

Eternal, the parent company of Zomato and Blinkit, reported a marginal rise in its cash balance during the first quarter of FY26, despite significant capital expenditure on expanding its quick commerce business.

As per regulatory filings dated July 21, Eternal’s cash reserves stood at Rs 18,857 crore in Q1FY26, up by Rs 33 crore from Rs 18,825 crore in Q4FY25. This increase comes even as the company spent heavily on setting up dark stores for Blinkit and other expansion initiatives during the quarter.

Compared to the same quarter last year, when the cash balance was Rs 12,539 crore, Eternal’s reserves have grown significantly — aided in part by the Rs 8,446 crore raised through a qualified institutional placement (QIP) in Q3FY25. The additional funds enabled the company to accelerate its growth strategy and strengthen its competitive position in the market.

Eternal noted that its profitable food delivery business, Zomato, has contributed steadily to cash generation. The company stated, “The increase would have been much higher if not for part recovery of the ticketing advances given in Q4FY25 in the Going-out business.”

Eternal’s current cash position is nearly three times that of its closest competitor, Swiggy. As of Q4FY25, Bengaluru-based Swiggy reported cash reserves of Rs 6,695 crore, compared to Eternal’s Rs 18,857 crore in Q1FY26. While Swiggy’s Q1FY26 results are yet to be disclosed, it is expected that its cash balance may decline further as it continues to invest in its quick commerce arm, Instamart.

Swiggy, which went public in November 2024 and raised over Rs 8,500 crore through its IPO, remains a key rival to Eternal in both food delivery and quick commerce. The quick commerce segment — featuring players like Blinkit, Swiggy’s Instamart, Zepto, Tata’s BigBasket, and Flipkart Minutes — continues to see intense competition, requiring significant funding for rapid expansion.

Moneycontrol earlier reported that Zepto is currently in discussions to raise up to $500 million (Rs 4,250 crore) to strengthen its position in the market and compete more aggressively with Blinkit and other rivals.

With its strong cash reserves and ongoing investments, Eternal appears well-positioned to defend and grow its leadership in India’s competitive quick commerce and food delivery sectors.