Swiggy saw its food delivery gross merchandise value (GMV), or sales, rise 17 percent to $1.43 billion in the first half of FY24, according to financial filings of its investor Prosus.
This means that Swiggy's food orders trailed rival Zomato's $1.84 billion. While Zomato's revenue came in at $630 million during H1, Prosus didn't reveal Swiggy's revenue for the period.
"This was led by a rise in transacting users that drove double-digit order
growth and inflation in AOV. Core food-delivery EBITDA losses in 1H24 shrunk 89%, led by improvements in contribution margin and operating leverage. In combination, this reflects customer willingness to pay for convenience and restaurant willingness to advertise for growth," Prosus said.
Prosus, which owns a 33 percent stake in Swiggy, further said that the Indian unicorn's quick-commerce business made rapid strides as customer adoption drove order growth. Basket sizes grew well ahead of inflation.
Instamart’s store count ended the period 19 percent higher in June, contributing to its GMV growth of 63 percent, according to Prosus. With the platform focused on gaining scale and moving towards profitability in the 25 cities where it operates, Instamart’s first-half contribution losses fell by around 75 percent.
"Broader product selection, densification of the store network and faster delivery times have continued to aid customer acquisition and retention," said Prosus.
Earlier this year, Swiggy had declared that its food-delivery business turned profitable in the March quarter of FY23, after factoring in all corporate costs, excluding employee stock option (ESOP) costs.
In a blog post on May 18, Swiggy co-founder and Chief Executive Officer (CEO) Sriharsha Majety also said that the company’s quick commerce segment Instamart was on track to become contribution-margin break-even in the next few weeks. This is a metric typically used by e-commerce companies to communicate the profitability of their business on a per order basis, including variable costs like logistics, but excluding fixed costs and marketing spend.
Swiggy was valued at $10.7 billion when it last raised $700 million in January last year. However, over the past year, its investors like Invesco and Barron have revised its valuation downwards to account for a downturn in the prices of private tech companies.
(This is a developing story. Please check back for updates)
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