After the food delivery service, which made its market debut in November, announced a sequential increase in its consolidated net loss for Q2 FY25, Swiggy shares are anticipated to garner attention on Wednesday. During the July–September 2024 period, the loss increased from Rs 611 crore to Rs 625.53 crore. In contrast to the Rs 657 crore loss recorded in Q2 FY24, this represents an improvement.
In the meantime, operating revenue increased 11.77% from Q1 FY25 to Q2 FY25, from Rs 3,222.22 crore to Rs 3,601.45 crore. Revenue increased significantly by 30.33% year over year (YoY).
According to the corporate filing, Swiggy's total gross order value (GOV) increased 30% year over year to reach Rs 11,306 crore, while the consolidated adjusted EBITDA loss of Rs 341 crore indicated a 30% YoY decrease in the net loss. The average monthly transacting users (MTU) on the platform increased 19.2% year over year to 17.1 million.
MD & CEO Sriharsha Majety commented on the company's Q2 results, saying that the food industry had a great showing thanks to excellent execution and innovation. "We're always looking to anticipate and enhance the customer experience. One illustration of such is the recent introduction of Bolt, our 10-minute delivery service. In a similar vein, we anticipate and react to customer behavior in rapid commerce to provide urban homes with ever-increasing convenience. With an average delivery time of 13 minutes, Instamart already serves 54 locations and ships over 32,000 unique items," according to Majety.
The profitability of Swiggy's food delivery operation nearly doubled, with adjusted EBITDA of Rs 112 crore at a 1.6% margin. To reach Rs 7,191 crore, GOV expanded gradually by 5.6% QoQ.
Within eight weeks of its inception, the company's 10-minute restaurant food delivery service, "Bolt," already accounted for 5% of all food deliveries, according to the filing.
Performance on Swiggy Instamart, the company's fast-commerce platform, improved, with GOV growth accelerating to 24% QoQ to reach Rs 3,382 crore. Orders per dark store increased by 10% daily, while overall orders increased by 21% QoQ.
52 stores and 12 cities were added by Instamart during the quarter, and the company's contribution margin increased by 124 basis points on a quarterly basis to -1.9%.
Swiggy Instamart intends to increase the average size of its stores by 30–35% and double the number of its dark stores by March 2025, from 523 in March 2024. The active dark store area will therefore increase by more than 2.5 times year over year to reach 4 million square feet by March 25.
The company has processed about 3.5 billion orders and reached 118 million consumers in the past ten years.
On Tuesday, the board of directors of the firm also authorized an investment of up to Rs 1,600 crore in equity shares of the wholly-owned subsidiary Scootsy Logistics Private Limited.
It is anticipated that the investment will be made through a rights issue subscription in one or more tranches.
Up to Rs 1,350 crore of the IPO revenues would be used by the business to expand Instamart. An additional Rs 250 crores would be invested in working capital infusion.
The amount of shares that Swiggy owns in Scootsy will remain unchanged.
The creation of a wholly owned subsidiary to handle sports team ownership, management, talent development, event planning, and facility operating, among other activities, was also approved by the board of directors.
