Swiggy’s investor Prosus, in its financial filing, highlighted a significant milestone for Swiggy’s core food-delivery business. The platform experienced a robust 17% growth, delivering a noteworthy gross merchandise value (GMV) of $1.43 billion in the first half of FY24.
“This was led by a rise in transacting users that drove double-digit order growth and inflation in AOV,” Prosus said.
“Core food-delivery EBITDA losses in 1H24 shrunk 89 per cent, led by improvements in contribution margin and operating leverage. In combination, this reflects customer willingness to pay for convenience and restaurant willingness to advertise for growth,” it added.
Prosus, with a 32.7% stake in Swiggy, reported a decrease in trading losses to $208 million.
Trading losses in the first half of the previous year were $321 million.
The company further stated that its quick-commerce business achieved rapid advancement, attributing the growth in orders to increased customer adoption. Additionally, basket sizes demonstrated notable expansion, surpassing the rate of inflation.
The company reported a 19% increase in Instamart’s store count by the end of June, contributing to a substantial 63% growth in its Gross Merchandise Value (GMV).
“With the platform focused on gaining scale and moving towards profitability in the 25 cities where it operates, Instamart’s first-half contribution losses fell by around 75 per cent,” Prosus stated.
“Broader product selection, densification of the store network and faster delivery times have continued to aid customer acquisition and retention,” it added.
Last month, US-based investment company Invesco elevated Swiggy’s valuation to about $7.85 billion.
Read More: Swiggy’s valuation skyrockets 42% to $7.85B following Invesco’s review
In May, Invesco reduced Swiggy’s valuation within its holdings to approximately $5.5 billion.
Read More: Investment firm Invesco lowers Swiggy’s valuation again, marking it down to $5.5 Billion
According to a newly-published disclosure, Invesco said that “it considers the valuation of similar public companies as a factor when reassessing the value of its private investments”, reports TechCrunch.