During 2022, the losses at food delivery platform Swiggy widened to over half a billion dollars, as per the investment group Prosus.
How Did This Happen?
Prior to this, the Netherlands-based firm’s share of trading losses in Swiggy widened to $180 million from $100 million in 2021.
This was driven by investment in the quick commerce business, Swiggy Instamart, which peaked during the year, the company said in its annual report released on Tuesday.
This indicates that the Swiggy posted a loss of nearly $556 million for the calendar year 2022.
Although Swiggy has an April-March financial year, Prosus accounts have a lag of one quarter.
Swiggy Focused On Its Profitability Journey
The private equity group invested $299 million for the financial year ended March.
Compared to the previous year, Prosus’ share of Swiggy’s revenue stood at $297 million which is up 40% from the previous year.
It is driven by a higher average order value and revenue from delivery fees and advertising sales.
Moreover, this private equity group held 32.38% effective interest in Bundl Technologies Pvt. who is the owner of the brand Swiggy.
This way making it the single largest shareholder.
With this, Swiggy’s total implied revenue stood at around $900 million or Rs 7,305 crore, for the calendar year 2022.
The revenues are almost the same as Zomato’s revenue, which stood at Rs 7,079.4 crore in fiscal 2023.
When it comes to the gross merchandise value for Swiggy, the total value of goods sold by it including delivery fees grew to $2.6 billion in 2022, up 13% from $2.3 billion.
Year-on-year, Swiggy’s core food delivery business’s GMV rose 26% and Instamart saw five fold growth during this time.
According to Prosus, Swiggy focused on its profitability journey, which is reflected in its financial performance, in fiscal 2023.
“In the past two reporting periods, Swiggy has concentrated on reactivating users, increasing monthly frequency, and improving user conversion,” Prosus said.
Adding, “The benefits are evident in its results for FY23.”
Prosus said Swiggy was “well-funded” to capitalize on recent momentum and well-positioned to improve its platform’s competitiveness by investing in product and technology.
