What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
Swiggy’s Instamart showed strong performance, delivering over 32,000 unique items across 54 cities with an average delivery time of 13 minutes.
NEW DELHI: Bengaluru-based food and grocery delivery platform Swiggy reported a consolidated net loss of ₹625.5 crore in Q2FY25, a slight improvement from ₹657 crore in the same period last year. The quarterly report, released on Tuesday, December 3, marks Swiggy’s first since its stock market debut on November 13. Shares of the company rallied by 9.8% ahead of the announcement before closing with a 1.7% gain.
Despite the loss, Swiggy demonstrated robust growth across its key business segments. Revenue from operations rose significantly to ₹3,601.45 crore, a 30 percent increase compared to ₹2,763.33 crore in the corresponding quarter of the previous fiscal. However, total expenses also surged, reaching ₹4,309.54 crore, up from ₹3,506.63 crore year-on-year.
ALSO READ: NTPC Green Energy: Third largest listing of year 2024
Swiggy’s Board has approved a significant investment of up to ₹1,600 crore in its wholly-owned subsidiary Scootsy Logistics Pvt Ltd. The funds will be allocated through a rights issue in multiple tranches to strengthen Scootsy’s supply chain and distribution capabilities. Scootsy reported a turnover of ₹5,195.7 crore for the fiscal year ending March 2024.
In the quick commerce segment, Swiggy’s Instamart showed strong performance, delivering over 32,000 unique items across 54 cities with an average delivery time of 13 minutes. The company added 12 cities and 52 dark stores during the quarter, improving its contribution margin by 124 basis points quarter-on-quarter. Swiggy aims to double the store count and expand its dark store area to 4 million square feet by March 2025.
Swiggy’s monthly transacting users (MTU) grew by a million during the quarter, bringing the total user base to 17.1 million, a 19 percent year-on-year increase. The company expects to achieve consolidated profitability by the December quarter of 2025. Additionally, Instamart is projected to break even by the July-September quarter of 2026.
Swiggy highlighted the success of its 10-minute food delivery platform, Bolt, which now accounts for 5 percent of all food orders. “The remarkable performance of our food business operations comes on the back of strong innovation and execution,” said Sriharsha Majety, Swiggy’s MD & Group CEO.
The company continues to face intense competition in quick commerce from Zomato’s Blinkit, which turned profitable earlier this year, start-up rival Zepto, and Mukesh Ambani’s Reliance.
