Archive · 31 Dec 2025
AICPDF Urges SEBI to Halt Quick-Commerce IPOs
A group that represents many small shops and distributors in India has asked the government's market watchdog, SEBI, to stop allowing companies that deliver groceries quickly (like Zomato and Swiggy) from raising money through the stock market.
These companies are losing money, and the group thinks it's not fair to let them do this because it could hurt small investors and shop owners.
They also say these companies are using a lot of money from investors to offer cheap prices, which is making it hard for small shops to compete.
The group wants SEBI to make sure everything is fair and transparent before allowing these companies to raise money from the public.
AICPDF urges SEBI to pause IPOs of loss-making quick-commerce companies until CCI proceedings are resolved.
Quick-commerce companies operate with large losses and negative cash flows, relying on investor capital for subsidies and infrastructure.
Valuations of these companies are often based on market share rather than profitability.
Recent IPOs like Zomato and Swiggy allowed early investors to exit despite continued losses.
AICPDF has filed complaints with CCI alleging predatory pricing and anti-competitive conduct by quick-commerce platforms.
- Who
- All India Consumer Products Distributors Federation (AICPDF)
- What
- Urging SEBI to pause IPOs of loss-making quick-commerce firms
- When
- Ongoing, with recent representation to SEBI
- Where
- India
- Why
- To protect small retail investors and the retail trade ecosystem from risks posed by loss-making companies
- Organization
- All India Consumer Products Distributors Federation (AICPDF)
- Regulator
- Securities and Exchange Board of India (SEBI)
- Companies Affected
- Quick-commerce and e-commerce firms
- Distributors Represented
- 4.5 lakh
- Retail Outlets Represented
- 1.3 crore
- Recent Examples
- Zomato, Swiggy
- Regulatory Body Involved
- Competition Commission of India (CCI)
