SUMMARY
- Swiggy’s consolidated net loss grew by over 8% to Rs 611 crore in Q1 FY25 from Rs 564.08 crore in Q1 FY24.
- Swiggy’s revenue from operations surged by 35% to Rs 3,222.2 crore during the quarter under review from Rs 2,389.8 crore in Q1 FY24.
- The company’s expenses also rose by 27.2% to Rs 3,908 crore in Q1 FY25.
Swiggy‘s consolidated net loss grew by over 8% to Rs 611 crore in Q1 FY25 from Rs 564.08 crore in Q1 FY24, driven by a significant increase in operational expenses.
However, Swiggy’s revenue from operations surged by 35% to Rs 3,222.2 crore during the quarter under review from Rs 2,389.8 crore in the same period last year, thanks to the growth in its food delivery and quick commerce businesses.
The food delivery segment contributed Rs 1,518 crore to Swiggy’s total operating revenue in Q1 FY25, marking a rise from Rs 1,200 crore in Q1 FY24. This growth was mainly attributed to an increase in gross order value (GOV) from Rs 5,958.7 crore in Q1 FY24 to INR 6,808.3 Cr in Q1 FY25.
Swiggy’s quick commerce division, Instamart, recorded a revenue of Rs 374.1 crore in the reported quarter, rising 107% from Rs 180 crore in Q1 FY24. The growth of Instamart was fueled by a jump in GOV, which rose to Rs 2,724 crore from Rs 1,741.5 crore in Q1 FY24.
Swiggy, founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini, initially focused on food delivery but later expanded into the quick commerce sector with Instamart.
While Swiggy experienced an increase in its net loss in Q1, its competitor Zomato saw a jump in its consolidated net profit from Rs 253 crore to Rs 253 crore in the same period. Zomato’s quick commerce division Blinkit reported a revenue of Rs 942 crore in the quarter, with a gross order value of Rs 4,923 crore.
The company’s expenses also rose by 27.2% to Rs 3,908 crore in Q1 FY25, mainly due to higher spending on stock-in-trade purchases, food delivery, employee benefits, delivery charges, and other overheads.
Swiggy managed to reduce its spending on cost of materials by almost 46% to Rs 7.76 crore in the reported quarter from Rs 14.36 crore in Q1 FY24.
In terms of stock-in-trade purchases, Swiggy spent Rs 119.5 crore in Q1 FY25, marking a 33% increase from Q1 FY24.
The company also saw a 21.3% increase in employee benefit expenses, reaching Rs 589.2 crore in the quarter under review.
The foodtech major has submitted an updated draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise more than Rs 3,750 crore through its initial public offering (IPO).
According to the DRHP, Swiggy’s initial public offering (IPO) will include a fresh share issuance valued at Rs 3,750 crore and a component for equity shares worth Rs 18.53 crore.
The foodtech firm is expected to be aiming for an IPO valuation of $15 billion. However, brokerage firm Elara Capital anticipates Swiggy will achieve a lower valuation in the public market than Zomato, as Swiggy trails behind Zomato in various important areas such as revenue, government-owned value, number of orders, among others.
Notably, investors are purchasing unlisted Swiggy shares in anticipation of the highly-awaited IPO. Companies like Hindustan Composites, Modern Insulators, and Madhuri Dixit have also expressed interest in investing in Swiggy.
