New Delhi: Swiggy, the largest online food delivery and quick commerce company, reported revenues 30% higher to ₹3,601 crore for Q2 FY25 from ₹2,763 crore in the same period of last year. Anyway, the growth was hugely skewed towards quick commerce business that more than tripled by an enormous 135%, taking in ₹490 crore for the quarter.
Food delivery was the largest source of revenues for Swiggy, which at 43.7% accounted for overall revenues. That business was up by 23% year on year. Swiggy took its Q2 FY24 revenues of ₹1,281 crore to Q2 FY25 ₹1,575 crore. Another big one was Instamart, the quick grocery service, whose gross order value touched ₹3,382 crore or 75% year on year. The average order value for Instamart was ₹499 with high demand coming from product categories such as beauty products and personal electronics.
While Swiggy saw a loss of ₹625 crore, compared with ₹657 crore last year. The company’s total expenses have jumped 23% to ₹4,309 crore in employee benefit costs and rising delivery operations. Of these total expenses, FMCG has taken up around 32.2%, or ₹1,388 crore.
The company spent around ₹1.19 to earn every rupee of revenue this quarter, implying high cost of operations. The exception here is Swiggy’s logistics division, Scootsy, that emerged as a strong contributor, making up nearly 40 percent of its total revenue and growing 22 per cent quarter-on-quarter.
Swiggy’s food delivery services were positive this time as it reported a net profit worth ₹121 crore in comparison to its loss of ₹43 crores in the previous year. Bolt and Eatlists are some initiatives that have increased the customer engagement and revenue in the segment.
While Swiggy is expanding, it faces stiff competition from Zomato, which reported higher operating revenue of ₹4,799 crore and a profit of ₹176 crore during the same quarter. The grocery arm of Zomato, Blinkit, is outpacing Swiggy’s Instamart, which earned ₹1,156 crore.
Swiggy plans to scale Instamart quite meaningfully by almost doubling the dark store count from 523 to over 1,000 by the end of this financial year to stay ahead in competition and enhance service efficiency as well as greater needs of customers.
