Food and grocery delivery major Swiggy saw a significant growth in its total sales and order volume in the first six months of 2022, according to one of its biggest investor Prosus.
Its food delivery business clocked an order growth of 38 percent, while in terms of its total sale or gross merchandise value (GMV), it saw a growth of 40 percent in the first six months of the year, according to Prosus, one of its biggest investors.
As per the report, total quick commerce and gross merchandise value grew 20 times and 15 times, respectively, during the same period. The restaurant food delivery GMV stood at $1.3 billion, while quick commerce GMV was $257 million, said the report.
The report also added that its share of Swiggy’s revenue grew faster at 72 percent to $150 million, which means it reflected higher average order values and increased revenue from delivery fees and advertising sales.
On the other hand, its losses also increased to $105 million, driven by investment in both food delivery business and Instamart.
“Our share of Swiggy’s trading loss increased to $105 million, driven by investment in both the core restaurant food delivery business to increase growth and in Instamart to expand its footprint,” said Prosus in its earnings report which ended on 30 September 2022.
The report added Swiggy remains well funded to drive its business objectives.
In its earnings report for the year ended March 31, 2022, Prosus said Swiggy has focussed on reactivating users, increasing monthly frequency and returning user conversion to levels they were at prior to the pandemic. Also, Swiggy’s business has recovered fully from the effects of the COVID pandemic, said the investor.
Prosus invested twice in Swiggy - $274 million in April 2021 and $25 million in February 2022. As of March 2021, it held a 41 percent stake in the company, which then came down to 33 percent as it did not participate equally.
Prosus' other food tech bets include Brazilian food-delivery platform iFood, German multinational Delivery Hero, German grocery-delivery startup Flink, Norwegian online grocery firm Oda, and Foodics, a restaurant-management startup in West Asia.
In India, its other companies include PayU, BYJU's, Meesho, Eruditus.
In January 2022, Swiggy raised $700 million and said the money will be used to invest in Instamart as well as accelerate growth on the food-delivery front. In the quick commerce vertical, it majorly competes with Zomato-acquired BlinkIt, Zepto.
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