Swiggy, the leading food delivery and quick commerce company in India, has demonstrated remarkable progress in its fiscal second quarter of FY25. The company narrowed its loss to Rs 625.53 crore, a notable improvement from the Rs 657.01 crore loss recorded in the same period of the previous fiscal year. Revenue from operations surged by 30.33% year-on-year (YoY) to Rs 3,601.45 crore, driven by robust growth across its food delivery and Instamart segments.

This earnings announcement is Swiggy’s first post-IPO disclosure, following its listing on November 13, 2024. The IPO, which was opened on November 6, 2024, received a subscription rate of 3.59 times, with QIBs leading the charge by subscribing 6.02 times. The retail segment witnessed a moderate response, with 1.14 times subscription.

Strong Food Delivery Growth

Swiggy’s core food delivery segment contributed significantly to its performance, posting revenue of Rs 1,577.47 crore for Q2 FY25, a 22.29% YoY growth compared to Rs 1,289.91 crore in the previous fiscal year. Gross Order Value (GOV) grew 5.6% quarter-on-quarter (QoQ) to Rs 7,191 crore, supported by increased Monthly Transacting Users (MTUs). Swiggy introduced its innovative 10-minute food delivery service, Bolt, now operational in over 400 cities, which accounted for 5% of food delivery orders within eight weeks of launch.

Instamart Quick Commerce Expansion

The standout performer for Swiggy was its Instamart quick commerce division, which achieved revenue growth of 135.53% YoY, reaching Rs 490 crore in Q2 FY25. The GOV for Instamart grew 24.1% QoQ to Rs 3,382 crore, with a 21% rise in order volumes and increased efficiency in dark stores. Swiggy announced ambitious plans to double its dark store count by March 2025 and expand its store size to house up to 20,000 SKUs. The launch of megapods—large-format stores—aims to cater to a broader range of consumer demands with delivery times as low as 10-30 minutes.

Strategic Investments and Future Outlook

Swiggy has allocated Rs 1,600 crore for its wholly owned subsidiary, Scootsy Logistics, to bolster its Instamart operations. Of this, Rs 1,350 crore will be used for dark store expansion and lease payments, while Rs 250 crore will address working capital requirements. This strategic investment aligns with the utilization of IPO proceeds aimed at enhancing infrastructure and scaling operations.

Financial Metrics and Innovations

Adjusted EBITDA for Q2 FY25 improved substantially, with the food delivery segment recording a 94.1% sequential growth to Rs 112 crore. The company’s cash reserves stood at Rs 4,531 crore as of September 2024, further strengthened by Rs 4,359 crore raised through its IPO. Swiggy expects to achieve positive adjusted EBITDA by Q3 FY26 (Oct-Dec 2025).

Swiggy's innovative platform witnessed 19% YoY growth in MTUs, reaching 17.1 million users. The company’s out-of-home consumption vertical, including Swiggy Dineout, recorded Rs 59.05 crore in revenue. Integrating Dineout into its app has bolstered Swiggy’s one-app strategy.

Quick Commerce Market Leadership

Instamart’s expansion plans underline Swiggy’s commitment to dominating the quick commerce market. By March 2025, the company aims to have over 4 million square feet of active dark store area, supported by the rollout of larger stores and megapods in key urban centers.

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Swiggy's robust Q2 performance highlights its strategic focus on innovation and market expansion, setting the stage for sustainable growth in the evolving quick commerce and food delivery ecosystem.