Food delivery giant Swiggy has reported a 30% reduction in adjusted EBITDA loss, bringing it down to $182 million in calendar year 2024 from $261 million the previous year. This progress came even as the company significantly scaled up its investments in Instamart, its quick commerce vertical.
The update was shared by Prosus, a key investor in Swiggy, as part of its financial disclosures.
GOV Surges on Food and Grocery Growth
Swiggy’s Gross Order Value (GOV) for 2024 rose 29% year-on-year, supported by steady momentum in food delivery and aggressive expansion in grocery deliveries.
Swiggy went public in November 2024 via a ₹11,400 crore IPO, and Prosus noted that the company is now starting to benefit from operating leverage, even as it continues to invest in scale and reach.
FY25 Kicks Off With Strong Momentum
In the first quarter of FY25, Swiggy’s performance accelerated:
Overall GOV surged ~40% YoY
Food delivery GOV grew 18%
Quick commerce GOV skyrocketed 101%
This reflects strong consumer demand and increased order frequency across both verticals.
Profitability in Food, Peak Losses in Quick Commerce
Swiggy’s food delivery business turned contribution positive in Q1FY25, achieving an adjusted EBITDA margin of 2.9% over GMV.
However, its quick commerce unit Instamart posted its steepest losses yet, with a -18% margin, largely due to the addition of 316 new dark stores during the quarter.
Prosus called this quarter the “peak of investment” in quick commerce, with Swiggy aiming for contribution breakeven in 3 to 5 quarters.
Conclusion: Investments Today, Returns Tomorrow
Swiggy’s financial update paints a picture of disciplined loss reduction paired with aggressive growth, especially in the quick commerce segment. While food delivery has achieved profitability, the company is betting big on grocery to drive future growth.
If Swiggy succeeds in bringing Instamart to breakeven within the next few quarters, it could mark a major milestone in its journey toward long-term profitability.
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