Swiggy’s Financial Turnaround: Losses Narrow, Quick Commerce Surges in 2024
India’s food delivery giant Swiggy slashes annual losses by 30% as quick commerce arm Instamart drives record growth, but competition and expansion keep profitability elusive.
Swiggy’s Financial Performance in 2024
Swiggy’s financial results for calendar year 2024 mark a pivotal moment for the company. According to a recent update from key investor Prosus, Swiggy’s adjusted EBITDA loss shrank by 30%, dropping to $182 million from $261 million the previous year. This turnaround is particularly noteworthy given the company’s continued heavy spending on its quick commerce arm, Instamart.
The company’s Gross Order Value (GOV) rose by 29% year-on-year, propelled by robust growth in both food delivery and the rapid expansion of quick commerce services. In Q1 FY 2025, Swiggy’s gross order value (GOV) jumped by almost 40% y-o-y, driven by an 18% rise in food delivery and a remarkable 101% growth in its quick commerce segment.
Quick Commerce: The Growth Engine
Instamart, Swiggy’s quick commerce vertical, has emerged as the primary driver behind the company’s improved financials. Instamart posted a 101% year-on-year increase in GOV during Q4 FY25, touching ₹4,670 crore. This growth was supported by the addition of 316 new dark stores—more than the total added in the previous eight quarters combined—and expansion into 124 cities.
The average order value on Instamart also increased by 13% to ₹527 in the fourth quarter, indicating higher consumer engagement and larger basket sizes. Swiggy’s management attributes this rapid expansion to strategic investments in market reach, store network, and differentiated offerings such as Maxxsaver and Megapods, which are designed to enhance customer experience and operational efficiency.
Expansion and Innovation
Swiggy’s rapid expansion in quick commerce goes beyond just opening new stores. The company has introduced several new initiatives to attract and retain customers:
• Bolt: Since its October debut, Bolt has contributed close to 9% of Swiggy’s total food delivery volume, helping attract new users and increase average order values.
• Snacc: A 10-minute food delivery service, catering to the growing demand for ultra-fast deliveries.
• Swiggy Scenes: A new feature focusing on restaurant event reservations, similar to Zomato’s dine-out offerings.
• Premium Subscription (One BLCK): Targeting high-value customers with exclusive benefits.
These innovations, along with a focus on segmented offerings and new categories within quick commerce, have helped Swiggy capture more consumption occasions and diversify its revenue streams.
Financial Headwinds: Losses Remain High
Despite narrowing its adjusted EBITDA loss, Swiggy’s overall net losses remain substantial. In Q4 FY 2025, the company posted a net loss of ₹1,081 Cr—almost twice the ₹554 Cr loss recorded in the year-ago quarter. For the full fiscal year, Swiggy’s loss widened by 33% to ₹3,117 crore, even as consolidated operational revenue grew 35% to ₹15,227 crore.
The primary reason for these persistent losses is the company’s aggressive investment in expanding its quick commerce footprint. Swiggy’s expenses have surged, driven by infrastructure development, logistics enhancements, and marketing costs necessary to compete in a market characterized by intense rivalry and rapid innovation.
IPO and Shareholder Movements
Swiggy’s financial journey in 2024 was also marked by a successful public market debut. The company completed a ₹11,400 crore ($1.37 billion) IPO in November, with Prosus reducing its stake to 24.8% and realizing $2.8 billion in value from its original holding. This influx of capital has enabled Swiggy to accelerate its growth initiatives, particularly in quick commerce.
Competitive Landscape and Future Outlook
Swiggy’s rapid expansion comes amid heightened competition from rivals such as Zomato, Blinkit, and Zepto, all vying for dominance in the quick commerce space. The sector is witnessing a phase of rapid innovation, with companies racing to offer faster deliveries, broader product assortments, and deeper market penetration.
Swiggy’s CEO Sriharsha Majety remains optimistic, emphasizing the company’s focus on balancing food delivery margin expansion with growth investments in quick commerce. The company aims to double its quick commerce business space in the second half of FY25, signaling continued momentum in store additions and market coverage.
Conclusion
The company’s 2024 performance reflects the significant role quick commerce is playing in transforming India’s digital landscape. By narrowing its losses and doubling down on Instamart, Swiggy has positioned itself as a formidable player in both food delivery and grocery segments. However, the path to sustained profitability remains challenging, with high operational costs, ongoing investments, and fierce competition shaping the road ahead.
As Swiggy continues to innovate and expand, its ability to balance growth with financial discipline will determine its long-term success in the evolving Indian market.
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