Swiggy is eyeing operational profitability by December 2025, the company said in its first earnings post its public debut in November. The company’s net losses narrowed to INR 625.5 crore on a consolidated basis in the September quarter from INR 657 crore in the year ago period. Revenue from operations increased by 30 percent year-on-year to INR 3,601.4 crore in Q2FY25. In a letter to shareholders, the firm said that at the consolidated group level, it expects to achieve positive adjusted EBITDA by Q3FY26. Swiggy’s rival Zomato with which it competes in both the food delivery and quick commerce markets is profitable. “Our food delivery business turned profitable last year, and continues to ramp-up…quick commerce is in the investment phase, amidst rapid expansion of its addressable market and substantial competitive intensity in the near-term,” the company said.The gross order value (GOV) of Swiggy’s food delivery business grew by 15 percent y-o-y to INR 7,191 crore. The firm’s recently launched 10-minute food delivery service Bolt already accounts for 5 perecent of its total food delivery orders. Swiggy will build more consumption occasions and use-cases for consumers to fuel the growth of its food delivery business which had 14.7 million average monthly transacting users (MTU) as of Q2.
For its quick commerce business Instamart which competes with players like Zomato’s Blinkit, Zepto and BigBasket, the growth strategy will be to launch in new cities as well as deepen the footprint in existing markets. Plans are afoot to more than double its active dark store area to 4 million square feet by March 2025 through a mix of new dark store additions and larger sized stores. “Swiggy Instamart is at an inflection point. The quick commerce category is expanding to more geographies, consumer shopping missions and categories in retail. Our investments (including marketing spends) will be aimed at driving user growth, frequency and wallet share with continuous hyper-local and geographical store expansion,” said Sriharsha Majety, MD & group CEO at Swiggy. GOV of the quick commerce business stood at INR 3,382 crore in Q2, up 24 percent sequentially and over 70 percent y-o-y.
The company’s INR 11,327 crore initial public offering (IPO) which came three years after Zomato’s public debut was the second biggest public issue this year. The stock price of Swiggy ended at zinr 501.30 apiece on the BSE on Tuesday, up 1.20 percent. In a disclosure to the exchanges, the company also said that it will invest up to INR 1,600 crore through a rights issue in its logistics subsidiary Scootsy.
Abhishek Mukherjee 
