Swiggy, one of India’s leading food delivery and quick commerce platforms, reported a net loss of ₹799 crore in the third quarter of fiscal year 2024-25. This marks a significant increase from ₹574 crore recorded in the same period last year. The company attributed its widening losses to aggressive investments in expanding Instamart, its quick commerce platform, as it competes with major rivals such as Zomato’s Blinkit and Zepto.
Revenue and Growth Performance Show Positive Trends
Despite the increased losses, Swiggy witnessed strong growth in its revenue from operations, which surged by 31% year-over-year to ₹3,993 crore. The company also reported a 38% rise in Gross Order Value (GOV), reaching ₹12,165 crore. Additionally, Swiggy’s monthly transacting users grew by an impressive 25.3%, climbing to 17.8 million. Interestingly, nearly a third of all users utilized more than one service on the platform, showcasing the company’s expanding ecosystem and customer engagement.
Instamart Drives Growth With Strong Expansion Plans
Swiggy’s quick commerce arm, Instamart, emerged as a key driver of growth, registering a remarkable 88.1% year-over-year increase in Gross Order Value. The company has been rapidly expanding Instamart’s footprint, now operating in 84 cities across India. To further accelerate its growth, Swiggy plans to increase its active dark store area to 4 million square feet by March 2025. These investments align with the company’s strategy to strengthen its position in the quick commerce space and cater to India’s rising demand for rapid grocery and essentials delivery.
New Initiatives Enhance Customer Experience and Market Reach
Swiggy has introduced several new initiatives in recent months to diversify its offerings and enhance customer convenience. One such initiative, Bolt, aims to deliver food orders within 10 minutes, catering to users seeking ultra-fast service. Additionally, Swiggy launched Snacc, which provides a variety of snacks and small meals through a quick delivery model. The company also entered the restaurant events and reservations segment with Swiggy Scenes, an offering designed to help users book curated dining experiences at partner restaurants.
Moreover, Swiggy expanded its membership program with the introduction of One BLCK, a premium tier of its Swiggy One subscription service. This move aims to offer added benefits to high-value customers and encourage loyalty. With these new services, Swiggy seeks to create a more engaging and seamless experience for its users while differentiating itself from competitors.
Competitive Pressures and Investment Strategy
Swiggy faces intense competition in both the food delivery and quick commerce segments. Zomato’s Blinkit and Zepto have been aggressively expanding, pushing Swiggy to accelerate its own growth initiatives. The company continues to invest heavily in infrastructure, technology, and service innovation to maintain its competitive edge. While these investments have contributed to the widening losses, Swiggy remains focused on long-term profitability and customer acquisition.
Looking Ahead: Balancing Growth and Profitability
Despite the financial losses, Swiggy’s strategic investments indicate a strong focus on scaling its business and enhancing customer satisfaction. As the quick commerce segment continues to evolve, the company aims to solidify its position by improving operational efficiency and expanding its market presence. By leveraging its growing user base and diversifying its services, Swiggy is positioning itself for sustained growth in the highly competitive Indian market.
