Swiggy, India’s leading food and grocery delivery platform, reported its second-quarter FY25 results, marking its first financial results since going public. For the period from July to September 2024, Swiggy recorded a consolidated loss of Rs 625.5 crore. While the loss has reduced compared to Rs 657 crore in the same period last year, it has also decreased sequentially from Rs 611 crore in Q1 FY25.
Swiggy’s Gross Order Value (GOV) grew by an impressive 30% year-on-year to reach Rs 11,306 crore for the quarter. This surge in GOV is a clear indicator of the platform’s strong market presence and customer demand. The company’s consolidated adjusted EBITDA loss stood at Rs 341 crore, representing a 30% reduction in loss year-on-year, reflecting improvements in operational efficiency.
Swiggy also saw a 19.2% year-on-year growth in its Platform Average Monthly Transacting Users (MTU), reaching 17.1 million. This growth highlights Swiggy’s increasing user engagement and loyalty.
Swiggy’s food delivery business saw significant improvement, nearly doubling its profitability. The adjusted EBITDA for the food business stood at Rs 112 crore, with a 1.6% margin. The GOV for food delivery grew by 5.6% quarter-on-quarter to Rs 7,191 crore, driven by strong demand and operational leverage.
The company also launched Bolt, its new 10-minute food delivery service, which has quickly captured a 5% share of Swiggy’s total food deliveries within just eight weeks of launch. The innovative service has contributed to Swiggy’s strong growth trajectory in the competitive food delivery space.
Instamart Sees Accelerated Growth
Swiggy’s Instamart, its quick commerce platform, showed impressive performance with a 24% quarter-on-quarter growth in GOV, reaching Rs 3,382 crore. The overall orders for Instamart grew by 21% quarter-on-quarter, with orders per dark store rising by 10%. This growth is a testament to the increasing demand for fast and convenient delivery of grocery and essential items.
Instamart also expanded its footprint by adding 12 new cities and 52 stores during the quarter. The platform is set to continue its aggressive expansion strategy, with plans to double the number of active dark stores by March 2025, compared to March 2024. The expansion will result in an additional 2.5 million square feet of active dark store area, further solidifying Instamart’s position in the growing quick commerce market.
Looking Ahead: Expansion and Operational Efficiency
Swiggy is focused on expanding its offerings and improving its operational efficiency. With plans to increase the average size of stores by 30-35%, the company aims to significantly enhance its service capabilities. Instamart’s active dark store area is expected to grow by more than 2.5 times YoY, reaching 4 million square feet by March 2025, allowing Swiggy to serve more customers with increased speed and reliability.
Key Highlights from Q2 FY25
- Gross Order Value (GOV) grew by 30% YoY to Rs 11,306 crore.
- Adjusted EBITDA loss reduced by 30% YoY to Rs 341 crore.
- Food delivery business saw adjusted EBITDA nearly double, reaching Rs 112 crore.
- Instamart GOV grew by 24% QoQ, with improved contribution margin (+124 bps QoQ).
- 52 new stores and 12 cities added to Instamart’s portfolio.
- Plans to double dark store area by March 2025, reaching 4 million sq ft.
A Strong Path Forward for Swiggy
Swiggy’s second-quarter performance demonstrates significant progress, with strong growth in GOV, a reduction in losses, and impressive user engagement. The company’s expansion into quick commerce through Instamart and innovative services like Bolt position Swiggy for continued success in India’s competitive delivery market. With plans for further growth and operational improvements, Swiggy is well-positioned for sustained momentum in FY25 and beyond.
