Food-tech giant Swiggy saw its losses widen 8 percent to Rs 611 crore in Q1FY25 from Rs 564 crore a year ago on mounting expenses, the company’s updated draft red herring prospectus (DRHP) showed.
The company spent Rs 3,908 crore in the three months, up 27 percent from Rs 3,073 crore spent during the same period in the previous fiscal.
Swiggy’s revenue from operations stood at Rs 3,222.2 crore in the April-June period of the current fiscal year, an increase of 35 percent from Rs 2,389.8 crore recorded in the corresponding period of the previous year.
In comparison, its listed rival Zomato had a revenue of Rs 4,206 crore (74 percent growth year-on-year) and generated a profit of Rs 253 crore in Q1FY25.
On a full year basis, Swiggy’s revenue grew 36 percent to Rs 11,247 crore in FY24 from Rs 8,265 crore. Its losses were down 44 percent to Rs 2,350 crore from Rs 4,179 crore in this period helped by a stronger control on expenses, as reported earlier by Moneycontrol.
While Swiggy has lagged behind Zomato so far, it has narrowed the gap ahead of its debut in stock market later this year.
Swiggy Instamart, the company's quick commerce arm, had a revenue of Rs 374 crore (up 108 percent) in Q1FY25 while its rival Zomato-owned Blinkit clocked a revenue of Rs 942 crore (up 23 percent) during the same period.
Swiggy filed its first updated DRHP with the Securities and Exchange Board of India (Sebi) on September 26. The fresh issue component is for Rs 3,750 crore while the offer-for-sale (OFS) part would be around Rs 6,664 crore (comprising 18.53 crore shares), totaling to an IPO size of Rs 10,414 crore or $1.25 billion.
The company is likely to increase its IPO size by Rs 1,250 crore, or $150 million, taking the total to Rs 11,664 crore or $1.4 billion, Moneycontrol had reported earlier. The decision will be taken at the company’s extraordinary general meeting (EGM) on October 3.
As part of the OFS, investors like Prosus, Accel, Coatue, Alpha Wave, Elevation, Norwest, Tencent and others will sell shares and reduce their ownership in the company to make way for new ones, as people bet on the company’s long-term growth potential and also look for diversification beyond Zomato.
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