In preparation of a billion-dollar public-market listing, Swiggy trimmed its losses by 43% to ₹2,350 crore in FY24, buoyed by rapid growth in its food delivery and quick commerce vertical Instamart.
The Prosus and Baron Capital-backed company saw its revenue from operations rise 36% to ₹11,247 crore in FY24. Swiggy’s consumer-facing business comprising food delivery, Instamart and dining recorded a total gross order value (GOV) of ₹35,000 crore ($3.5 billion) driven by its 14.3 million monthly transacting users.
Food delivery—Swiggy’s largest business—accounted for about 70% of its overall GOV, while Instamart contributed 23%, according to the firm’s annual report.
“The expansion in GOV (of food delivery) is catalyzed by an increase in AOV (average order value) due to increased premium offerings and larger basket sizes. Our total orders also grew by 17% driven by increasing user base and ordering frequency,” Swiggy said in the report.
Continuous improvements in contribution margin across segments is driven by rising take rates and higher contribution of advertisement revenues, cost optimization and reduction of discounts, it added.
Instamart, which was started in 2020, accounted for almost a third of the food delivery business. “This rapid expansion was on the back of increased density of dark stores in existing cities and expansion to new cities,” it said.
Instamart made a gross revenue of ₹1,100 crore in FY24, more than doubling from ₹500 crore in the previous year, driven by an increase in AOV led by a shift in category mix to premium offerings, increased advertisement revenues, and reduced last-mile expenses.
The Sriharsha Majety-led company is gearing up for a public-market listing, and aims to raise as much as $1-1.2 billion at a valuation of $15 billion, making it one of the biggest initial public offerings in India this year.
Capital market regulator Securities and Exchange Board of India (Sebi) is expected to clear its confidential filing within a month. Following the approval, it will file a public prospectus, according to a recent Reuters report.
Swiggy also made several top-management changes in preparation of an IPO. Last week, it appointed Amitesh Jha as the chief executive officer of Instamart, while the current CEO of Instamart Phani Kishan assumed a broader organisation-wide role to oversee the central growth unit.
In early August, it appointed Sairam Krishnamurthy as senior vice-president and chief operating officer of Instamart. In the new role, Sairam will oversee Instamart’s operating units, which include dark store operations, infrastructure operations, city growth and expansion.
