India, March 26 -- Global brokerage firm BofA Securities has downgraded ratings for Zomato and Swiggy, citing concerns over their future growth prospects and the increasing competitive pressure in the food delivery industry.

The brokerage firm expects losses to rise in the quick commerce business over the next 12-15 months. It further believes that new entrants in the QC segment will further push incumbents towards higher losses in the near term on the back of platform-led discounts and higher marketing expenses.

On the other hand, the food delivery market is also expected to suffer lower cash flows. "We expect the food delivery GOV growth in the next few quarters to slow to 16-18% year on year from the market expectation of around 20% ...