Swiggy Cuts Losses by 43% in FY24 as Food Delivery and Instamart Fuel Growth Ahead of IPO

Swiggy, the popular food delivery company, has reduced its losses by 43% in FY24, bringing the total loss down to ₹2,350 crore. This improvement is largely due to the growth of its food delivery services and its quick commerce business, Instamart, as the company prepares for a major public listing worth over a billion dollars.

Revenue Growth

Backed by investors like Prosus and Baron Capital, Swiggy’s revenue from operations grew by 36%, reaching ₹11,247 crore in FY24. The company’s main business areas—food delivery, Instamart, and dining—saw a total gross order value (GOV) of ₹35,000 crore, thanks to its 14.3 million monthly users.

Food delivery remains Swiggy’s biggest segment, making up about 70% of its total GOV, while Instamart contributed 23%, as per Swiggy’s annual report.

Business Expansion

Swiggy explained that the growth in GOV for food delivery was boosted by larger order values (AOV) due to more premium offerings and bigger basket sizes. The total number of orders also grew by 17%, driven by an increase in its user base and more frequent orders.

The company has also been improving its contribution margin, which is the profit made from each segment after accounting for costs. This was achieved by raising service fees, increasing ad revenues, optimizing costs, and offering fewer discounts.

Instamart’s Rapid Growth

Instamart, which was launched in 2020, now makes up almost one-third of Swiggy’s food delivery business. This rapid expansion was helped by adding more dark stores (warehouses that fulfill online orders) in cities where they already operate and expanding into new cities.

Instamart’s revenue more than doubled in FY24, reaching ₹1,100 crore compared to ₹500 crore in FY23. This was driven by a higher AOV, which came from offering more premium products, increasing ad revenue, and reducing delivery costs.

Preparing for IPO

Swiggy, led by CEO Sriharsha Majety, is getting ready for a public listing and aims to raise between $1 billion and $1.2 billion, with a valuation of $15 billion. This would make it one of the largest IPOs in India this year. According to reports, India’s Securities and Exchange Board (SEBI) is expected to approve its confidential filing within a month. After that, Swiggy will submit a public prospectus.

Leadership Changes

In preparation for the IPO, Swiggy has made several leadership changes. Amitesh Jha was appointed as the new CEO of Instamart, while Phani Kishan, the current CEO of Instamart, took on a larger role overseeing Swiggy’s central growth unit. In August, Sairam Krishnamurthy was named senior vice-president and chief operating officer of Instamart, where he will manage operations, city growth, and expansion.