IPO-bound Swiggy reduced its losses by 44% for the financial year ending March 31, 2024. The decacorn startup reported a net loss of INR 2,350 crore in FY24, down from INR 4,179.3 crore in FY23.
In͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ the͏͏ Prosus-backed͏͏ startup͏͏ reported͏͏ a͏͏ loss͏͏ of͏͏ INR͏͏ 611͏͏ crore.
Revenue͏͏ Surge͏͏ Driven͏͏ by͏͏ Quick͏͏ Commerce:
Swiggy’s͏͏ operating͏͏ revenue͏͏ surged͏͏ 36%͏͏ to͏͏ INR͏͏ 11,247.3͏͏ crore͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ INR͏͏ 8,264.5͏͏ crore͏͏ the͏͏ previous͏͏ year,͏͏ driven͏͏ by͏͏ the͏͏ growth͏͏ of͏͏ its͏͏ quick͏͏ commerce͏͏ arm,͏͏ Swiggy͏͏ Instamart.
Swiggy͏͏ generates͏͏ revenue͏͏ through͏͏ its͏͏ food͏͏ delivery͏͏ and͏͏ quick͏͏ commerce͏͏ businesses,͏͏ restaurant͏͏ reservation͏͏ and͏͏ event͏͏ ticketing͏͏ platform͏͏ DineOut͏͏ and͏͏ SteppingOut,͏͏ as͏͏ well͏͏ as͏͏ supply͏͏ chain͏͏ services͏͏ for͏͏ wholesalers,͏͏ among͏͏ other͏͏ streams.
Food͏͏ Delivery͏͏ and͏͏ Quick͏͏ Commerce͏͏ Growth:
The͏͏ food͏͏ delivery͏͏ business͏͏ generated͏͏ INR͏͏ 5,160͏͏ crore͏͏ in͏͏ operating͏͏ revenue͏͏ in͏͏ FY24,͏͏ marking͏͏ a͏͏ 25%͏͏ rise͏͏ from͏͏ INR͏͏ 4,129.9͏͏ crore͏͏ the͏͏ previous͏͏ year.
The͏͏ quick͏͏ commerce͏͏ business͏͏ recorded͏͏ an͏͏ operating͏͏ revenue͏͏ of͏͏ INR͏͏ 978.5͏͏ crore͏͏ in͏͏ FY24,͏͏ nearly͏͏ doubling͏͏ from͏͏ INR͏͏ 451.3͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.
Continue͏͏ Exploring:͏͏ Swiggy’s͏͏ Q1͏͏ loss͏͏ widens͏͏ 8%͏͏ YoY͏͏ to͏͏ INR͏͏ 611͏͏ Cr,͏͏ operating͏͏ revenue͏͏ jumps͏͏ 35%
Out-of-Home͏͏ Consumption͏͏ Segment͏͏ Performance:
The͏͏ out-of-home͏͏ consumption͏͏ segment,͏͏ including͏͏ DineOut͏͏ and͏͏ SteppingOut,͏͏ reported͏͏ an͏͏ operating͏͏ revenue͏͏ of͏͏ INR͏͏ 157.1͏͏ crore,͏͏ up͏͏ 102%͏͏ from͏͏ INR͏͏ 77.6͏͏ crore͏͏ in͏͏ FY23.
Swiggy’s͏͏ platform͏͏ innovation͏͏ segment,͏͏ comprising͏͏ Swiggy͏͏ Minis,͏͏ Swiggy͏͏ Genie,͏͏ and͏͏ its͏͏ private͏͏ labels,͏͏ generated͏͏ INR͏͏ 171.9͏͏ crore͏͏ in͏͏ revenue,͏͏ reflecting͏͏ a͏͏ 46%͏͏ decline͏͏ from͏͏ INR͏͏ 319.2͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.
Swiggy͏͏ reported͏͏ a͏͏ total͏͏ revenue͏͏ of͏͏ INR͏͏ 11,634.3͏͏ crore͏͏ in͏͏ FY24,͏͏ including͏͏ other͏͏ income,͏͏ marking͏͏ a͏͏ 33%͏͏ increase͏͏ from͏͏ INR͏͏ 8,714.3͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.
Competitive͏͏ Landscape:
In͏͏ comparison,͏͏ Swiggy’s͏͏ listed͏͏ competitor͏͏ Zomato͏͏ posted͏͏ a͏͏ net͏͏ profit͏͏ of͏͏ INR͏͏ 351͏͏ crore͏͏ in͏͏ FY24,͏͏ alongside͏͏ an͏͏ operating͏͏ revenue͏͏ of͏͏ INR͏͏ 12,114͏͏ crore.
The͏͏ IPO-bound͏͏ company͏͏ effectively͏͏ managed͏͏ to͏͏ limit͏͏ its͏͏ expense͏͏ growth,͏͏ with͏͏ total͏͏ expenditure͏͏ increasing͏͏ only͏͏ 8%͏͏ to͏͏ INR͏͏ 13,947.3͏͏ crore͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ INR͏͏ 12,884.3͏͏ crore͏͏ in͏͏ FY23.͏͏ In͏͏ the͏͏ first͏͏ quarter͏͏ of͏͏ FY25,͏͏ the͏͏ startup’s͏͏ total͏͏ expenses͏͏ amounted͏͏ to͏͏ INR͏͏ 3,907.9͏͏ crore.
As͏͏ the͏͏ startup͏͏ focused͏͏ on͏͏ its͏͏ quick͏͏ commerce͏͏ business,͏͏ Swiggy’s͏͏ procurement͏͏ cost͏͏ emerged͏͏ as͏͏ its͏͏ largest͏͏ expenditure͏͏ in͏͏ FY24,͏͏ representing͏͏ nearly͏͏ 33%͏͏ of͏͏ total͏͏ expenses.͏͏ Procurement͏͏ costs͏͏ reached͏͏ INR͏͏ 4,604͏͏ crore͏͏ in͏͏ FY24,͏͏ a͏͏ 36%͏͏ increase͏͏ from͏͏ INR͏͏ 3,380.7͏͏ crore͏͏ in͏͏ FY23.
Employee͏͏ Cost͏͏ was͏͏ the͏͏ second-largest͏͏ expense͏͏ for͏͏ Swiggy.͏͏ However,͏͏ employee͏͏ benefit͏͏ expenses͏͏ declined͏͏ by͏͏ 6%͏͏ to͏͏ INR͏͏ 2,012.1͏͏ crore͏͏ in͏͏ FY24,͏͏ down͏͏ from͏͏ INR͏͏ 2,129.8͏͏ crore͏͏ in͏͏ FY23.͏͏ The͏͏ cost͏͏ of͏͏ share-based͏͏ payments͏͏ reached͏͏ INR͏͏ 596͏͏ crore,͏͏ a͏͏ slight͏͏ increase͏͏ from͏͏ INR͏͏ 533.9͏͏ crore͏͏ in͏͏ FY23.
Like͏͏ many͏͏ startups͏͏ aiming͏͏ to͏͏ reduce͏͏ losses,͏͏ Swiggy͏͏ cut͏͏ its͏͏ advertising͏͏ expenses͏͏ by͏͏ 26%,͏͏ bringing͏͏ them͏͏ down͏͏ to͏͏ INR͏͏ 1,850.7͏͏ crore͏͏ in͏͏ FY24͏͏ from͏͏ INR͏͏ 2,501͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ fiscal͏͏ year.
The͏͏ startup’s͏͏ EBITDA͏͏ margin͏͏ improved͏͏ to͏͏ -16.2%͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ -46.4%͏͏ in͏͏ FY23.͏͏ The͏͏ adjusted͏͏ EBITDA͏͏ loss͏͏ nearly͏͏ halved͏͏ to͏͏ INR͏͏ 1,835.5͏͏ crore͏͏ in͏͏ FY24,͏͏ down͏͏ from͏͏ a͏͏ loss͏͏ of͏͏ INR͏͏ 3,910.3͏͏ crore͏͏ the͏͏ previous͏͏ year.
Founded͏͏ in͏͏ 2014͏͏ by͏͏ Sriharsha͏͏ Majety,͏͏ Nandan͏͏ Reddy,͏͏ Phani͏͏ Kishan͏͏ Addepalli,͏͏ and͏͏ Rahul͏͏ Jaimini,͏͏ Swiggy͏͏ began͏͏ as͏͏ a͏͏ food͏͏ delivery͏͏ startup͏͏ before͏͏ expanding͏͏ into͏͏ the͏͏ quick͏͏ commerce͏͏ segment͏͏ with͏͏ Instamart.
IPO͏͏ Filing͏͏ Announcement:
After͏͏ much͏͏ anticipation,͏͏ Swiggy͏͏ publicly͏͏ filed͏͏ its͏͏ IPO͏͏ papers,͏͏ or͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ (DRHP),͏͏ on͏͏ Thursday,͏͏ September͏͏ 26.͏͏ The͏͏ public͏͏ offer͏͏ will͏͏ include͏͏ a͏͏ fresh͏͏ issue͏͏ of͏͏ shares͏͏ valued͏͏ at͏͏ INR͏͏ 3,750͏͏ crore͏͏ ($450͏͏ million)͏͏ and͏͏ an͏͏ offer͏͏ for͏͏ sale͏͏ of͏͏ approximately͏͏ 18.53͏͏ crore͏͏ shares.
Continue͏͏ Exploring:͏͏ Swiggy files͏͏ updated͏͏ DRHP͏͏ with͏͏ SEBI͏͏ for͏͏ INR͏͏ 3,750͏͏ Cr͏͏ IPO
Investors͏͏ including͏͏ Accel,͏͏ Coatue,͏͏ Alpha͏͏ Wave,͏͏ Elevation,͏͏ Norwest,͏͏ and͏͏ Tencent͏͏ will͏͏ sell͏͏ shares͏͏ as͏͏ part͏͏ of͏͏ the͏͏ offer͏͏ for͏͏ sale͏͏ (OFS).͏͏ Accel͏͏ India͏͏ IV͏͏ (Mauritius)͏͏ Ltd͏͏ will͏͏ offload͏͏ 1.05͏͏ crore͏͏ shares,͏͏ while͏͏ Alpha͏͏ Wave͏͏ Ventures͏͏ will͏͏ sell͏͏ 55.73͏͏ lakh͏͏ shares.
The͏͏ company͏͏ intends͏͏ to͏͏ use͏͏ the͏͏ IPO͏͏ proceeds͏͏ for͏͏ marketing͏͏ and͏͏ promotion,͏͏ investing͏͏ in͏͏ technology͏͏ and͏͏ cloud͏͏ infrastructure,͏͏ funding͏͏ inorganic͏͏ growth͏͏ through͏͏ acquisitions,͏͏ and͏͏ for͏͏ general͏͏ corporate͏͏ purposes.
