Swiggy, the food delivery and quick commerce platform, has reported a consolidated net loss of Rs 800 crore for the quarter ended March 2024, narrowing from a loss of Rs 1,028 crore in the same period last year. The company's revenue from operations grew 35% year-on-year to Rs 3,222 crore, driven by strong performance in its food delivery and Instamart businesses.
Financial Highlights
The Bengaluru-based company's total expenses rose to Rs 3,993 crore in Q4FY24 from Rs 3,895 crore in the year-ago quarter. Employee benefits expense increased to Rs 1,050 crore from Rs 874 crore, while other expenses stood at Rs 2,402 crore, down from Rs 2,461 crore. The reduction in other expenses helped narrow the loss.
Segment Performance
Swiggy's food delivery business saw a 25% increase in revenue to Rs 2,100 crore, while its quick commerce arm Instamart reported a 50% surge in revenue to Rs 1,122 crore. The company's gross order value (GOV) for food delivery grew 20% to Rs 6,800 crore, and Instamart's GOV rose 60% to Rs 2,500 crore.
Operational Metrics
Swiggy's total orders across both segments increased 30% to 250 million in Q4. The average order value for food delivery remained steady at Rs 450, while Instamart's average order value was Rs 350. The company added 10,000 new restaurant partners during the quarter, taking the total to 2.5 lakh.
Outlook
Swiggy CEO Sriharsha Majety said the company remains focused on profitable growth and expects to achieve EBITDA breakeven in the food delivery business by the end of the current fiscal year. The company is also expanding its Instamart network to 50 cities from the current 30, with plans to increase dark store count to 1,000 by March 2025.
Swiggy's results come amid increasing competition from Zomato and Zepto. However, the company's narrowing losses and robust revenue growth signal improving unit economics. Analysts remain cautiously optimistic, noting that Swiggy's focus on cost optimization and higher-margin categories could drive profitability in the coming quarters.
