Agency
new delhi, Dec 3
Food delivery company Swiggy on Tuesday released its fiscal second quarter earnings report with a loss at Rs 625.53 crore, down from Rs 657.01 crore recorded during the same period of previous financial year. It posted revenue from operations at Rs 3601.45 crore, reporting a growth of 30.33 per cent as against Rs 2763.33 crore recorded during the second quarter of FY24. The company EBITDA loss stood at Rs 555 crore vs loss of Rs 624 crore YoY.
This is Swiggy’s first earnings announcement post the company got listed on the exchanges on November 13. The food delivery firm’s IPO was opened on November 06 and got subscribed 3.59 times while the retail section was booked 1.14 times. The issue was primarily driven by QIBs, subscribing to the issue 6.02 times. The IPO closed on November 08.
Swiggy’s food delivery business reported a revenue of Rs 1577.47 crore during the second quarter of FY25 as against Rs 1289.91 crore recorded during the same period of previous financial year. The segment posted a revenue growth of 22.29 per cent on-year. The vertical reported a GOV growth of 5.6 per cent QoQ to Rs 7191 crore led by string MTU growth. The adjusted EBITDA increased 94.1 per cent sequentially to Rs 112 crore. Swiggy also launched ‘Bolt’ in this quarter which provides restaurant food delivery in 10 minutes, unlocking new consumption use cases. Bolt, which is now available in over 400 cities, has already grown to 5 per cent of our food delivery orders within 8 weeks of launch, the company said.
The company recorded a revenue of Rs 59.05 crore for its out of home consumption business. “The Out of Home Consumption business is witnessing secular growth and improving margins. Swiggy Dineout is one of the very selective and strategic acquisitions we have made in our history; and the integration of Dineout on our united app has demonstrated the power of our one-app play,” the company stated.
Swiggy’s quick commerce segment, which it operates under Instamart, reported Q2 revenue at Rs 490.00 crore, posting a surge of 135.53 per cent as against Rs 208.04 crore recorded during the corresponding quarter of previous fiscal year. The vertical’s GOV grew at 24.1 per cent QoQ to Rs 3382 crore led by strong MTU growth. Orders, during the quarter, grew by 21 per cent QoQ, with orders per dark store per day growth of 10 per cent, and Dark store growth of 9 per cent QoQ (+52 stores QoQ). “This business is witnessing heightened degrees of competitive action. This means that we will need to be agile and responsive to the market movements and modulate our investments towards long term health of the business for sustainable GOV growth. 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, Co-founder, MD & Group CEO, Swiggy.
While talking about expansion plans for Instamart, he said that the company is planning to double its store count by March-25, while increasing the average size of our stores by 30-35 per cent. “We are replacing some of our older, small-format stores (2,500-2,800 sqft) with larger stores (3,500-4,500 sqft) that can house up to 20K SKUs. Additionally, we are rolling out ‘megapods’ (8,000-10,000 sqft) in top cities, which can house over 50K SKUs. These megapods will serve consumers in 10 to 30 minutes with an extended selection of items beyond the top 20K SKUs. Overall, we expect to more than double our active dark store area to 4 million sqft by March-25, through a combination of new store additions and larger sized stores,” said Sriharsha Majety.
Investment in Scootsy Logistics
Swiggy also announced that the company board has approved an investment of Rs 1600 crore in the equity shares of Scootsy Logistics Private Limited, the wholly owned subsidiary of Scootsy. The food aggregator will invest Rs 1350 crore in Scootsy as a part of the deployment of IPO proceeds towards Instamart and its expansion and upto Rs 250 crore towards working capital infusion.
The capital infusion, it said, is a part of the proceeds as specified in IPO Prospectus dated November 8, 2024 for a) expansion of dark store network for quick commerce through setting up of dark stores; b) lease / license payments for dark stores; and c) regular working capital..
