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Swiggy Reports Robust Q2FY25 Performance: Revenue Climbs 30%, Losses Narrow

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Swiggy, one of India’s leading food delivery and quick commerce platforms, demonstrated strong financial performance for the second quarter of FY25. The company reported a 30% year-on-year (YoY) growth in revenue, reaching ₹3,602 crore compared to ₹2,763 crore in the same quarter last year. This growth was primarily driven by an increase in transacting users and a robust demand across its food delivery and Instamart services.

While revenue surged, Swiggy managed to reduce its quarterly losses by 5% to ₹626 crore, down from ₹657 crore in Q2FY24. However, losses widened slightly when compared to Q1FY25, where the company reported a loss of ₹611 crore with revenue of ₹3,222 crore.

A Closer Look at the Numbers

Revenue and User Growth

Swiggy’s overall Gross Order Value (GOV) saw a 30% YoY increase, reaching ₹11,306 crore for the quarter. This was supported by a 19% growth in monthly transacting users (MTU), which stood at 17.1 million. The increased user base reflects Swiggy’s efforts in improving user experience and expanding its service portfolio.

Food Delivery Performance

The food delivery business demonstrated significant improvement in profitability. Adjusted EBITDA for this segment reached ₹112 crore with a margin of 1.6%. Food delivery GOV also grew sequentially by 5.6% to ₹7,191 crore. Notably, Swiggy recently launched a 10-minute delivery service, “Bolt,” which has quickly gained traction, contributing to 5% of food orders just eight weeks after its introduction.

Quick Commerce Growth

Swiggy’s quick commerce vertical, Instamart, continues to be a strong growth driver. Instamart’s GOV rose by 24% quarter-on-quarter (QoQ) to ₹3,382 crore, while order volumes increased by 21% during the same period. The company also improved its contribution margin for Instamart, narrowing the gap by 124 basis points QoQ to -1.9%.

Instamart expanded its footprint by adding services in 12 new cities and 52 additional dark stores, with plans to double its store count by March 2025. This expansion will increase the total operational area to 4 million square feet, positioning Swiggy to better meet urban demand for grocery deliveries.

Key Strategic Initiatives

“Bolt” for Faster Deliveries

Swiggy introduced “Bolt,” a 10-minute delivery service for select restaurants, to cater to the growing demand for ultra-fast deliveries. This service complements its food delivery offerings and aims to redefine customer expectations for speed and convenience.

Focus on Quick Commerce

Instamart, Swiggy’s quick commerce arm, has rapidly scaled, becoming a crucial part of its growth strategy. The company has invested heavily in technology, logistics, and partnerships to improve service efficiency and expand its product catalog, which now includes over 32,000 items. The average delivery time for Instamart stands at an impressive 13 minutes.

Challenges and Competition

Swiggy continues to face stiff competition from Zomato, its biggest rival in India. While Swiggy’s revenue for Q2FY25 reached ₹3,602 crore, Zomato reported ₹4,799 crore during the same period, with a net profit of ₹176 crore. Swiggy is still navigating its path toward profitability, whereas Zomato has already achieved and sustained positive net earnings.

In the quick commerce segment, Swiggy is up against players like Blinkit (owned by Zomato) and Zepto, which have a dominant presence in the market. Blinkit holds the largest market share, while Swiggy Instamart is ranked second in the segment.

Leadership Commentary

Sriharsha Majety, Managing Director and Group CEO of Swiggy, attributed the company’s growth to continuous innovation and a consumer-first approach. He stated, “The remarkable performance of our food business operations comes on the back of strong innovation and execution. The recent launch of Bolt is an example of how we’re anticipating and improving the consumer experience. Similarly, in quick commerce, we are responding to consumer behavior to bring more convenience to urban households.”

Majety also emphasized Swiggy’s long-term vision: “In the last ten years, we’ve reached 118 million users and processed 3.5 billion orders. With strong growth in GOV and reduced losses, we are optimistic about delivering value to consumers, the ecosystem, and shareholders.”

Future Outlook

Swiggy’s plans for the upcoming quarters include:

  • Expanding Bolt Services to new cities.
  • Scaling Instamart: Doubling the number of dark stores and increasing store sizes to enhance service capacity.
  • Improving Profitability: Through better operational efficiencies and optimized pricing strategies.

Swiggy’s Q2FY25 performance highlights its ability to capture market demand, innovate rapidly, and expand services, despite challenges. With ongoing investments in technology and customer experience, Swiggy is poised to strengthen its foothold in India’s competitive food delivery and quick commerce sectors. However, achieving sustained profitability remains a key hurdle as it looks to keep pace with rivals like Zomato

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