Swiggy, India’s leading on-demand convenience platform, has shared its first financial results since going public. The company has shown impressive growth and a significant reduction in losses, signaling a strong performance in both food delivery and quick commerce.
Key Highlights:
Overall Growth: Swiggy’s Gross Order Value (GOV) grew by 30% year-on-year (YoY), reaching INR 11,306 crore. The company also reduced its consolidated adjusted EBITDA (a measure of profitability) loss by 30% YoY to INR 341 crore.
Food Delivery Performance: The food delivery business saw a nearly two-fold increase in its profitability, with adjusted EBITDA rising to INR 112 crore, representing a margin of 1.6%. The GOV for food delivery grew 5.6% quarter-on-quarter (QoQ) to INR 7,191 crore. A major driver of this growth was the launch of Bolt, a 10-minute restaurant food delivery service, which now accounts for 5% of total food deliveries just 8 weeks after its introduction.
Instamart (Quick Commerce): Swiggy’s quick commerce platform, Instamart, posted strong growth with its GOV rising 24% QoQ to INR 3,382 crore. The number of orders grew 21% QoQ, and the number of orders per store per day increased by 10%. Instamart also expanded by adding 12 new cities and 52 stores, while improving its contribution margin by 124 basis points (bps) QoQ, reaching -1.9%. The company aims to double the number of its “dark stores” (warehouses used for quick commerce) by March 2025, increasing the active store area to 4 million square feet, more than double what it is today.
Strategic Insights:
User Growth: Swiggy’s Monthly Transacting Users (MTUs) grew 19.2% YoY to 17.1 million.
Expansion Plans: Swiggy continues to innovate with services like Bolt and expand its reach. Instamart’s rapid growth is a clear indicator of the increasing demand for fast, urban convenience services. The company’s focus on enhancing consumer experience and expanding its quick commerce network is paying off.
Leadership Perspective:
Sriharsha Majety, Swiggy’s CEO, highlighted the company’s focus on innovation and consumer experience as key factors driving its success. The launch of Bolt and the growth of Instamart are examples of how Swiggy is adapting to changing consumer behavior and expectations.
In summary, Swiggy has achieved a strong performance post-IPO, showing accelerated growth, especially in its food delivery and quick commerce segments. With ongoing investments in innovation and expanding its service offerings, the company is poised for further success, reducing losses while delivering more value to consumers and shareholders alike.
