Swiggy Q1: Loss Widens 8% YoY To INR 611 Cr, Operating Revenue Jumps 35%
by Amit Singh · Inc42SUMMARY
- IPO-bound Swiggy widened its consolidated net loss by over 8% to INR 611 Cr in Q1 FY25 from INR 564.08 Cr in the year-ago period owing to a surge in operating costs
- However, Swiggy’s operating revenue surged 35% YoY to INR 3,222.2 Cr in Q1 on the back of strong growth in its food delivery and quick commerce businesses
- Swiggy has filed an updated DRHP with market regulator SEBI to raise more than INR 3,750 Cr through its IPO
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IPO-bound Swiggy widened its consolidated net loss by over 8% to INR 611 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 564.08 Cr in the year-ago period owing to a surge in operating costs.
However, Swiggy’s revenue from operations zoomed 35% to INR 3,222.2 Cr during the quarter under review from INR 2,389.8 Cr on the back of strong growth in its food delivery and quick commerce businesses.
The food delivery vertical accounted for INR 1,518 Cr of Swiggy’s total operating revenue in Q1 FY25 as compared to INR 1,200 Cr in the corresponding quarter last year. The growth was primarily driven by an increase in gross order value (GOV) from INR 5,958.7 Cr in Q1 FY24 to INR 6,808.3 Cr in the Q1 FY25.
Meanwhile, Swiggy’s quick commerce arm Instamart clocked a revenue of INR 374.1 Cr in the reported quarter, a 107% jump from INR 180 Cr in Q1 FY24. The quick commerce vertical’s growth was fuelled by a rise in GOV, which jumped to INR 2,724 Cr in Q1 FY25 from INR 1,741.5 Cr in the year-ago period.
Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini, Swiggy started off as a food delivery startup but later forayed into the quick commerce segment with Instamart.
It competes with the likes of listed foodtech major Zomato.
While Swiggy saw its net loss widen in Q1, its rival Zomato posted a multifold YoY jump in its consolidated net profit to INR 253 Cr during the same period. Zomato’s quick commerce vertical clocked a revenue of INR 942 Cr in the reported quarter with a GOV of INR 4,923 Cr.
Adjusted EBITDA Loss Narrows To INR 348 Cr In Q1
While net loss rose, Swiggy managed to narrow its adjusted EBITDA loss to INR 347.8 Cr in Q1 FY25 from INR 486.8 Cr in the year-ago quarter.
Its food delivery vertical reported an adjusted EBITDA profit of INR 57.8 Cr during the quarter under review as against INR 43.2 Cr adjusted EBITDA loss it posted in Q1 FY24.
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On the other hand, the adjusted EBITDA loss of Swiggy’s quick commerce arm Instamart rose to INR 317.9 Cr in Q1 FY24 compared to INR 312.1 Cr in the year-ago period.
By comparison, Zomato posted an adjusted EBITDA profit of INR 299 Cr during the period.
In its DRHP, Swiggy said that its adjusted EBITDA excludes share based payments. The foodtech major spent INR 259.3 Cr towards share based payments in Q1 FY25, up 46% from INR 139.7 Cr in the year-ago period.
Where Did Swiggy Spend In Q1?
The foodtech major’s spending surged 27.2% to INR 3,908 Cr in Q1 FY25, primarily due to an increase in stock-in-trade purchases and food delivery, employee costs, delivery and other charges.
Cost Of Materials: Swiggy managed to cut its spending in this bucket by almost 46% to INR 7.76 Cr in the reported quarter as compared to INR 14.36 Cr in Q1 FY24.
Purchases Of Stock-In-Trade: Swiggy spent about INR 119.5 Cr under this head in Q1 FY25, a 33% YoY jump.
Employee Cost: The IPO-bound food delivery and quick commerce giant’s spending towards employee benefit expenses were up 21.3% YoY to INR 589.2 Cr in the reported quarter.
It is pertinent to note that Swiggy has filed an updated draft red herring prospectus (DRHP) with market regulator SEBI to raise more than INR 3,750 Cr through an initial public offering (IPO).
As per the DRHP, Swiggy’s public issue will comprise a fresh issuance of shares worth INR 3,750 Cr and an offer for sale (OFS) component of 18.53 Cr equity shares.
The foodtech major is said to be eyeing a valuation of $15 Bn for its IPO. Brokerage firm Elara Capital expects Swiggy to command a lower valuation in the public market as compared to Zomato as the IPO-bound company lags behind the Deepinder Goyal-led company across several key metrics like revenue, GOV, order count, among others.
However, investors are gobbling up unlisted shares of Swiggy ahead of the highly-anticipated IPO. Hindustan Composites, Modern Insulators, Madhuri Dixit, have announced an investment in the foodtech major.