Leading consumer tech company Swiggy’s adjusted EBITDA loss narrowed by 30 percent in calendar year 2024 to $182 million, down from $261 million in the previous year, according to a financial update shared by key investor Prosus, an improvement that has come even as the company ramped up investment in quick commerce vertical Instamart.
The Gross Order Value (GOV) for the year rose 29 percent on-year, driven by steady growth in food delivery and aggressive expansion in grocery. Swiggy, which went public in November 2024 in a Rs 11,400 crore IPO, is now seeing the early effects of operating leverage, even as it continues to invest in growth, Prosus said.
In the first quarter of FY25, the company’s momentum continued. GOV rose ~40 percent year-on-year, with food delivery GOV up 18 percent and quick commerce GOV surging 101 percent.
Food delivery had turned contribution positive during Q1FY25, with an adjusted EBITDA margin over GMV of 2.9 percent. However, Instamart recorded its steepest losses yet, with a -18 percent margin, as Swiggy added 316 new dark stores during the period. Prosus said the quarter marked the ‘peak of investment’ in the quick commerce business which Swiggy aims to bring to contribution breakeven within three to five quarters.
Prosus, which first invested in Swiggy in 2017, sold over 109 million shares during the IPO and now holds 24.8 percent of the company on a fully diluted basis. It continues to account for Swiggy as an associate investment.
This comes over a month after Prosus chief executive officer Fabricio Bloisi, in a letter to shareholders, said that Prosus has invested $8.6 billion in India, a market where it continues to see ‘incredible opportunity’.
Swiggy’s IPO was a major windfall for the investor, delivering $2.8 billion for its 31 percent stake, more than doubling the $1.3 billion invested. Prosus partially exited the food and grocery aggregator with a $500 million sell-down during the public offering.
The Netherlands-based firm is among the largest foreign investors in India, which has bet on companies such as BlueStone, Swiggy, Meesho, PayU, Urban Company, PharmEasy, and Eruditus.
Meesho, BlueStone, PayU and Urban Company are looking to launch IPOs in the near future, presenting several high-return opportunities to Prosus.
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