IPO-bound Swiggy reported a consolidated net loss of INR 611 crore in the June quarter of FY25, an increase of over 8% from INR 564.08 crore in the same period last year,͏͏ attributed͏͏ to͏͏ rising͏͏ operating͏͏ costs.
Revenue͏͏ Surge͏͏ Driven͏͏ by͏͏ Food͏͏ Delivery͏͏ and͏͏ Quick͏͏ Commerce:
Nonetheless,͏͏ Swiggy’s͏͏ revenue͏͏ from͏͏ operations͏͏ surged͏͏ 35%͏͏ to͏͏ INR͏͏ 3,222.2͏͏ crore͏͏ during͏͏ the͏͏ quarter,͏͏ up͏͏ from͏͏ INR͏͏ 2,389.8͏͏ crore,͏͏ driven͏͏ by͏͏ robust͏͏ growth͏͏ in͏͏ its͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ sectors.
In͏͏ Q1͏͏ FY25,͏͏ the͏͏ food͏͏ delivery͏͏ segment͏͏ contributed͏͏ INR͏͏ 1,518͏͏ crore͏͏ to͏͏ Swiggy’s͏͏ total͏͏ operating͏͏ revenue,͏͏ up͏͏ from͏͏ INR͏͏ 1,200͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ quarter͏͏ last͏͏ year.͏͏ This͏͏ growth͏͏ was͏͏ primarily͏͏ fueled͏͏ by͏͏ an͏͏ increase͏͏ in͏͏ gross͏͏ order͏͏ value͏͏ (GOV),͏͏ which͏͏ rose͏͏ from͏͏ INR͏͏ 5,958.7͏͏ crore͏͏ in͏͏ Q1͏͏ FY24͏͏ to͏͏ INR͏͏ 6,808.3͏͏ crore͏͏ in͏͏ Q1͏͏ FY25.
Instamart͏͏ Sees͏͏ Impressive͏͏ Revenue͏͏ Growth:
In͏͏ the͏͏ reported͏͏ quarter,͏͏ Swiggy’s͏͏ quick͏͏ commerce͏͏ division,͏͏ Instamart,͏͏ generated͏͏ revenue͏͏ of͏͏ INR͏͏ 374.1͏͏ crore,͏͏ marking͏͏ a͏͏ 107%͏͏ increase͏͏ from͏͏ INR͏͏ 180͏͏ crore͏͏ in͏͏ Q1͏͏ FY24.͏͏ This͏͏ growth͏͏ was͏͏ driven͏͏ by͏͏ a͏͏ rise͏͏ in͏͏ gross͏͏ order͏͏ value͏͏ (GOV),͏͏ which͏͏ soared͏͏ to͏͏ INR͏͏ 2,724͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ up͏͏ from͏͏ INR͏͏ 1,741.5͏͏ crore͏͏ in͏͏ the͏͏ same͏͏ period͏͏ last͏͏ year.
Founded͏͏ in͏͏ 2014͏͏ by͏͏ Sriharsha͏͏ Majety,͏͏ Nandan͏͏ Reddy,͏͏ Phani͏͏ Kishan͏͏ Addepalli,͏͏ and͏͏ Rahul͏͏ Jaimini,͏͏ Swiggy͏͏ began͏͏ as͏͏ a͏͏ food͏͏ delivery͏͏ startup͏͏ before͏͏ expanding͏͏ into͏͏ the͏͏ quick͏͏ commerce͏͏ sector͏͏ with͏͏ Instamart.
Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO
It͏͏ competes͏͏ with͏͏ established͏͏ foodtech͏͏ giant͏͏ Zomato.
Although͏͏ Swiggy’s͏͏ net͏͏ loss͏͏ increased͏͏ in͏͏ Q1,͏͏ its͏͏ competitor͏͏ Zomato͏͏ reported͏͏ a͏͏ substantial͏͏ year-on-year͏͏ rise͏͏ in͏͏ consolidated͏͏ net͏͏ profit͏͏ to͏͏ INR͏͏ 253͏͏ crore͏͏ during͏͏ the͏͏ same͏͏ period.͏͏ Zomato’s͏͏ quick͏͏ commerce͏͏ segment͏͏ achieved͏͏ revenue͏͏ of͏͏ INR͏͏ 942͏͏ crore͏͏ in͏͏ the͏͏ reported͏͏ quarter,͏͏ with͏͏ a͏͏ gross͏͏ order͏͏ value͏͏ (GOV)͏͏ of͏͏ INR͏͏ 4,923͏͏ crore.
The͏͏ foodtech͏͏ giant’s͏͏ expenditures͏͏ rose͏͏ by͏͏ 27.2%͏͏ to͏͏ INR͏͏ 3,908͏͏ crore͏͏ in͏͏ Q1͏͏ FY25,͏͏ primarily͏͏ driven͏͏ by͏͏ increased͏͏ stock-in-trade͏͏ purchases,͏͏ food͏͏ delivery͏͏ expenses,͏͏ employee͏͏ costs,͏͏ and͏͏ other͏͏ charges͏͏ related͏͏ to͏͏ delivery.
The͏͏ company͏͏ reduced͏͏ its͏͏ spending͏͏ on͏͏ materials͏͏ by͏͏ nearly͏͏ 46%,͏͏ bringing͏͏ it͏͏ down͏͏ to͏͏ INR͏͏ 7.76͏͏ crore͏͏ in͏͏ the͏͏ reported͏͏ quarter,͏͏ compared͏͏ to͏͏ INR͏͏ 14.36͏͏ crore͏͏ in͏͏ Q1͏͏ FY24.
Swiggy͏͏ incurred͏͏ approximately͏͏ INR͏͏ 119.5͏͏ crore͏͏ in͏͏ purchases͏͏ of͏͏ stock-in-trade͏͏ during͏͏ Q1͏͏ FY25,͏͏ marking͏͏ a͏͏ 33%͏͏ year-on-year͏͏ increase.
The͏͏ IPO-bound͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ giant͏͏ saw͏͏ its͏͏ employee͏͏ benefit͏͏ expenses͏͏ rise͏͏ by͏͏ 21.3%͏͏ year-on-year͏͏ to͏͏ INR͏͏ 589.2͏͏ crore͏͏ in͏͏ the͏͏ reported͏͏ quarter.
It͏͏ is͏͏ important͏͏ to͏͏ highlight͏͏ that͏͏ Swiggy͏͏ has͏͏ submitted͏͏ an͏͏ updated͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ (DRHP)͏͏ to͏͏ market͏͏ regulator͏͏ SEBI͏͏ in͏͏ order͏͏ to͏͏ raise͏͏ over͏͏ INR͏͏ 3,750͏͏ crore͏͏ through͏͏ an͏͏ initial͏͏ public͏͏ offering͏͏ (IPO).
According͏͏ to͏͏ the͏͏ DRHP,͏͏ Swiggy’s͏͏ public͏͏ issue͏͏ will͏͏ consist͏͏ of͏͏ a͏͏ fresh͏͏ issuance͏͏ of͏͏ shares͏͏ valued͏͏ at͏͏ INR͏͏ 3,750͏͏ crore,͏͏ along͏͏ with͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ (OFS)͏͏ of͏͏ 18.53͏͏ crore͏͏ equity͏͏ shares.
Targeting͏͏ a͏͏ $15͏͏ Billion͏͏ Valuation:
The͏͏ foodtech͏͏ giant͏͏ aims͏͏ for͏͏ a͏͏ valuation͏͏ of͏͏ $15͏͏ billion͏͏ for͏͏ its͏͏ IPO.͏͏ However,͏͏ brokerage͏͏ firm͏͏ Elara͏͏ Capital͏͏ anticipates͏͏ that͏͏ Swiggy͏͏ may͏͏ achieve͏͏ a͏͏ lower͏͏ valuation͏͏ in͏͏ the͏͏ public͏͏ market͏͏ compared͏͏ to͏͏ Zomato,͏͏ as͏͏ it͏͏ trails͏͏ behind͏͏ the͏͏ Deepinder͏͏ Goyal-led͏͏ company͏͏ in͏͏ several͏͏ key͏͏ metrics,͏͏ including͏͏ revenue,͏͏ gross͏͏ order͏͏ value͏͏ (GOV),͏͏ and͏͏ order͏͏ count.
Despite͏͏ this,͏͏ investors͏͏ are͏͏ eagerly͏͏ purchasing͏͏ unlisted͏͏ shares͏͏ of͏͏ Swiggy͏͏ in͏͏ anticipation͏͏ of͏͏ the͏͏ highly͏͏ awaited͏͏ IPO.͏͏ Hindustan͏͏ Composites,͏͏ Modern͏͏ Insulators,͏͏ and͏͏ Madhuri͏͏ Dixit͏͏ have͏͏ all͏͏ announced͏͏ investments͏͏ in͏͏ the͏͏ foodtech͏͏ giant.
