Swiggy Posts Rs 2,350 Crore Loss Ahead of IPO, Reports Strong Revenue Growth
New Delhi: Swiggy, the prominent competitor to Zomato in the online food delivery sector, has disclosed a net loss of Rs 2,350 crore for the fiscal year 2024 (FY24). This marks a significant reduction from the Rs 4,179 crore loss reported in FY23, representing a 44 percent decrease.
Despite the substantial loss, Swiggy experienced notable revenue growth, with figures climbing 36 percent to reach Rs 11,247 crore in FY24, up from Rs 8,265 crore the previous year. The company’s gross order value (GOV) for the year was $4.2 billion, reflecting a 26 percent year-on-year increase. Swiggy’s monthly transacting users averaged around 14.3 million during this period.
According to Swiggy’s FY24 financial report, the company’s profitability outlook has markedly improved, attributed to the completion of peak investments in Instamart and continued rapid business expansion.
In comparison, Zomato, a rival in the food delivery space, reported a 126 percent increase in net profit, reaching Rs 253 crore in the April-June quarter (Q1 FY25), up from Rs 2 crore in the same period the previous year. Zomato also saw a 74 percent year-on-year revenue growth, totaling Rs 4,206 crore for Q1 FY25.
As Swiggy prepares for its initial public offering (IPO) later this year, it is targeting a valuation of $15 billion with a planned raise of $1-$1.2 billion. The Indian food services market, which includes both dining out and delivery, is projected to grow at 10-12 percent annually, reaching Rs 9-10 lakh crore by 2030. Currently valued at Rs 5.5 lakh crore, the market’s growth is further supported by a report from Bain & Company and Swiggy, indicating that online food delivery will expand at an 18 percent compound annual growth rate (CAGR), contributing 20 percent to the overall food services market by 2030.
The food services sector in India, particularly catering to middle and higher-income segments, is expected to grow from Rs 4-5 lakh crore to approximately Rs 10 lakh crore by 2030, reflecting the sector’s robust expansion trajectory.
