Swiggy narrows gap with Zomato on revenue, food delivery business grew 36% to Rs 11,247 crore in FY24

Sriharsha Majety. co-founder and Group CEO of Swiggy

Food delivery company Swiggy’s revenue grew 36 percent from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24, according to the annual report seen by Moneycontrol. During the same period, its losses were down 44 percent from Rs 4,179 crore to Rs 2,350 crore helped by a stronger control on expenses during the year as ahead of the company’s plans to list on the stock exchanges later this year.

Moneycontrol had first reported that Swiggy had filed its draft IPO papers via the confidential route with the Securities and Exchange Board of India (SEBI) on April 26. The improvement in financial health comes at a time when public market investors are demanding new-age companies to turn in profits before they list or at least establish a concrete path to profitability.

While Swiggy’s core business grew 36 percent, it still lagged Zomato during the financial year. Gurugram-based Zomato, in comparison, had a revenue of Rs 12,114 crore (vs Swiggy's Rs 11,247 crore) and clocked a profit of Rs 351 crore (vs Swiggy's loss of Rs 2,350 crore) in FY24.

Swiggy's bottom line improved thanks to reduced expenses. The Bengaluru-based company spent Rs 13,947 crore in FY24, 8 percent lesser than Rs 12,884 crore that it spent in FY23. The reduced expenses was because Swiggy reduced its promotion and marketing spends from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24.

"The continued scale-up in the recent years is driven by an upwards momentum witnessed
in demand and supply side factors with (around) 14 million users transacting on our platform at a high frequency of (about) 4.5X. Profitability has sharply improved YoY, as the peak of investments in Instamart is behind us and the business continues to grow rapidly; while the relatively more mature Food delivery business is scaling-up profitably," Swiggy wrote in its annual report, indicating that the peak of its investment into quick commerce is behind it and the bottom line will further improve.

Swiggy has pumped in close to $1 billion to build Instamart from scratch.

On an overall basis, Swiggy had a gross order value (GOV) of $4.2 billion, up 26 percent year-on-year (YOY) and had 14.3 million monthly transacting users (MTUs). That compares with Zomato's $5.85 billion GOV and 19 million MTUs.

Of Swiggy's $4.2 billion, $3 billion came from food delivery, $0.3 billion came from Dineout and $1 billion came from Instamart (quick commerce), the annual report further showed.

Swiggy's food delivery had an average order value (AOV) of Rs 428 in FY24.

Swiggy Instamart Vs Blinkit
Even as Swiggy narrowed gap with rival Zomato on the food delivery front, it was a laggard when it came to quick commerce. Swiggy Instamart, which competes with Zomato's Blinkit, clocked a revenue of Rs 1,100 crore in FY24, which was behind Blinkit's Rs 2,301 crore in the same year, the companies' annual report revealed.

Swiggy Instamart is present in 27 cities, having an assortment of 17,000 stock keeping units (SKUs), through a network of 523 active dark stores.

Swiggy Instamart had an AOV of Rs 460 compared with Blinkit's Rs 617.