Swiggy, one of India’s leading food delivery platforms, has experienced significant financial fluctuations over the years. The company has shown impressive growth in revenue, but profitability remains a challenge as it continues to expand into new verticals like quick commerce.
Swiggy’s Financial Overview in FY23
In the financial year 2022-23 (FY23), Swiggy reported a total revenue of ₹8,265 crore, marking a growth of over 40% from the previous fiscal year. The majority of this revenue was driven by its core food delivery business, which constituted approximately 82% of the total revenue, while the quick commerce segment, particularly Swiggy Instamart, contributed a substantial portion as well.
However, despite this robust revenue growth, Swiggy faced significant challenges in achieving profitability. The company reported a net loss of ₹4,179 crore in FY23, a 15.2% increase from the previous year. This loss was driven by high operational costs, including procurement, delivery expenses, and employee benefits.
Performance in FY24 and Profitability Prospects
During the first nine months of FY24, Swiggy’s revenue from operations reached ₹5,476 crore, showing continued growth. Notably, Swiggy has made considerable progress in improving its EBITDA margins, particularly in the food delivery segment, where margins improved from -17.5% in FY23 to -1.9% in the first nine months of FY24. The company is aggressively cutting costs and optimizing operations as it prepares for an upcoming IPO.
Swiggy’s journey toward profitability is evident in its strategic focus on enhancing user engagement, reactivating inactive users, and increasing transaction frequency. The company aims to achieve overall profitability by the last quarter of 2024, positioning itself better for its anticipated IPO.
Key Financial Metrics
- Revenue in FY23: ₹8,265 crore
- Net Loss in FY23: ₹4,179 crore
- Revenue in First 9 Months of FY24: ₹5,476 crore
- Food Delivery Business EBITDA Margin in FY24: -1.9%
- Instamart EBITDA Margin in FY24: -109.5%
FAQ
- What was Swiggy’s revenue in FY23? Swiggy’s revenue in FY23 was ₹8,265 crore, marking a significant increase from the previous year.
- Is Swiggy profitable now? As of the first nine months of FY24, Swiggy has not yet achieved overall profitability but has significantly improved its EBITDA margins, especially in its food delivery business.
- What are Swiggy’s main sources of revenue? Swiggy generates revenue primarily from food delivery, quick commerce (Instamart), and other convenience services like Swiggy Genie.
- What were the major expenses for Swiggy in FY23? Major expenses included procurement costs, delivery operations, employee benefits, and marketing.
- When is Swiggy planning to go public? Swiggy is preparing for an IPO, expected to be launched in the second half of 2024.
Swiggy’s journey to profitability is a key focus as it continues to expand and optimize its operations. While the company still faces significant challenges, its strategic efforts are gradually leading it towards a more sustainable financial future.