Food delivery giant Swiggy has reported its financial results for the second quarter of fiscal year 2024-25 (Q2FY25), its first post a successful public market debutsuccessful public market debut. For the second quarter of the fiscal year, the company narrowed its consolidated net loss to ₹625.5 crore, a modest improvement from the ₹657 crore loss reported during the same quarter last year. However, the company’s losses widened sequentially compared to the ₹611 crore loss posted in Q1FY25.
Swiggy’s revenue for the period clocked a strong year-on-year increase, amounting to ₹3,601 crore, up from ₹2,763 crore during Q2FY24. Despite the increase in revenue, Swiggy’s expenses also surged, reaching ₹4,309 crore for the quarter, marking an increase from ₹3,506 crore in Q2FY24. This rise in expenditure is largely attributed to investments in expanding its infrastructure, scaling operations, and enhancing its logistics network.
One of the key indicators of Swiggy’s growing presence in the market is its Gross Order Value (GOV), which measures the total customer spending on the platform. In Q2FY25, the company reported a 30% year-on-year increase in GOV, reaching ₹11,306 crore for the quarter. The company’s food delivery business also clocked an annual growth of 5.6%, while its adjusted EBITDA profitability now amounts to ₹112 crore.
Similarly, the firm clocked a growth in its user base, particularly its Monthly Transacting Users (MTU). The company reported a 19.2% year-on-year increase in MTUs, reaching 17.1 million by the end of the quarter. In addition to increasing its customer base, Swiggy is focusing on strengthening its logistics capabilities. The company’s board has approved an investment of up to ₹1,600 crore in its subsidiary, Scootsy Logistics Pvt Ltd, to enhance its supply chain infrastructure.
In addition to this, the company’s quick commerce platform, Instamart, has emerged as a significant growth driver for the period. Instamart delivers groceries and household essentials in minutes, and witnessed a strong performance in Q2FY25. The platform’s GOV grew by 24% on a quarter-on-quarter basis, reaching ₹3,382 crore, while it experienced a rise of 21% in orders compared to the previous quarter. The average daily orders per dark store, which serves as a critical metric for quick commerce platforms, also grew by 10%. “Our Quick Commerce offering grew 24% QoQ with losses lowered by 124 bps as the contribution margin stood at -1.9% down from -3.2% in Q1. We crossed the 50 city milestone this quarter. As of today, Swiggy Instamart is live in 54 cities,” Swiggy announced in a post on LinkedIn.
“The remarkable performance of our food business operations comes on the back of strong innovation and execution. We are constantly trying to anticipate and improve the consumer’s experience. The recent launch of Bolt- our 10-minute delivery service is an example of that. Similarly in quick commerce, we are anticipating and responding to consumer behaviour to bring more and more convenience to urban households. Instamart today is present in 54 cities and delivers more than 32,000 unique items, within an average delivery time of 13 minutes,” Sriharsha Majety, MD & Group CEO, Swiggy, announced in a press release.
