Swiggy has reported impressive growth in Q2 FY25, with its revenue soaring to Rs 3,601 crore, driven largely by its quick commerce segment and food delivery services. Despite facing losses, the company’s performance signals its ongoing expansion in the competitive foodtech and quick commerce space.
Record Growth in Quick Commerce and Food Delivery
Swiggy has posted a remarkable 30.3% quarter-on-quarter growth in its operating revenue, which surged from Rs 2,763 crore in Q2 FY24 to Rs 3,601 crore in Q2 FY25. This surge can primarily be attributed to the company’s quick commerce business, which has expanded rapidly, recording an astounding 135% growth in the last quarter alone.
The food delivery business, a significant contributor to Swiggy’s revenue, continues to perform strongly. It accounted for 43.7% of the company’s total revenue in Q2 FY25, reaching Rs 1,575 crore, up 23% from Rs 1,281 crore in the same quarter last year. This indicates that Swiggy’s core business remains solid, even as it diversifies its portfolio.
Instamart’s Contribution and the Rise of Quick Commerce
Swiggy’s quick commerce platform, Instamart, contributed significantly to the company’s performance, bringing in Rs 490 crore in revenue for Q2 FY25. This marks a 135% year-on-year growth from Rs 208 crore in Q2 FY24. Instamart’s success was driven by higher order frequency and an expansion in the number of stores, which bolstered its gross order value (GOV). This growth highlights the increasing demand for faster grocery and essential deliveries, with Instamart positioning itself as a key player in this competitive space.
While Swiggy’s Instamart lags behind Zomato’s Blinkit in terms of revenue, the rapid growth of its quick commerce division is a sign that Swiggy is catching up. Instamart made up 13.6% of Swiggy’s total revenue, indicating its increasing importance within the company’s overall strategy.
Scootsy and Non-Operating Income Boost Revenue
In addition to its core business and quick commerce, Swiggy’s logistics arm, Scootsy, contributed a major 40% of the company’s total operating income. Scootsy’s revenue grew 22% quarter-on-quarter, reaching Rs 1,452 crore in Q2 FY25, compared to Rs 1,190 crore in the same period last year. This service, which focuses on supply chain and distribution, earned Rs 5,196 crore in FY24, highlighting its critical role in Swiggy’s business model.
Swiggy’s diverse revenue streams also include non-operating income from platforms like Dine Out, Genie, and Swiggy Mini. These contributed to a total revenue of Rs 3,686 crore in Q2 FY25, underscoring the company’s broadening service offerings and its efforts to diversify its income sources.
Rising Costs and Losses
Despite significant revenue growth, Swiggy’s operational costs also saw a sharp rise. Procurement costs for FMCG products, which form a substantial part of the company’s expenses, increased by 16.1% to Rs 1,388 crore in Q2 FY25. Delivery charges grew modestly by 4.7%, totaling Rs 1,095 crore in Q2 FY25. Additionally, employee benefits and advertising expenses amounted to Rs 607 crore and Rs 605 crore, respectively.
This increase in costs pushed Swiggy’s overall expenses up by 22.9%, reaching Rs 4,309 crore for the quarter. As a result, the company reported a loss of Rs 625 crore, a slight decrease from the Rs 657 crore loss in Q2 FY24. This highlights the challenges Swiggy continues to face in balancing its rapid expansion with profitability.
Comparing Swiggy and Zomato: A Battle of Revenue and Profitability
While both Swiggy and Zomato demonstrated strong revenue growth in Q2 FY25, their financial outcomes differed. Swiggy’s revenue from operations rose 11.76% to Rs 3,601 crore, whereas Zomato saw an even higher 14.1% growth, reaching Rs 4,799 crore. Despite the higher growth, Swiggy posted a loss of Rs 625 crore, while Zomato reported a profit of Rs 176 crore in the same period.
In the grocery delivery segment, Zomato’s Blinkit outperformed Swiggy’s Instamart, generating Rs 1,156 crore compared to Instamart’s Rs 490 crore. Zomato also led in food delivery, with Rs 2,012 crore in revenue compared to Swiggy’s Rs 1,577 crore. These figures demonstrate Zomato’s dominance in both the grocery and food delivery sectors, while Swiggy continues to focus on scaling its offerings in quick commerce and logistics.
Swiggy’s Market Position
At the close of trading on December 3, 2024, Swiggy’s share price stood at Rs 491, with a market capitalization of Rs 1,18,870 crore (approximately $14 billion). In comparison, Zomato’s share price was Rs 280, with a market capitalization of Rs 2,48,353 crore (approximately $29.3 billion). The disparity in market valuation reflects Zomato’s current leadership in profitability and revenue growth, though Swiggy’s expansion in quick commerce and logistics is positioning it for future growth.
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