Swiggy, the Bengaluru-based food delivery giant, has significantly improved its financial performance in FY24. The company reported a 36% rise in operating revenue, reaching Rs 11,247 crore. Additionally, Swiggy reduced its annual losses by 43%, bringing them down to Rs 2,350 crore. This improvement is notable as Swiggy prepares for its upcoming Initial Public Offering (IPO).
Comparison with Zomato
Despite Swiggy’s progress, it still trails behind its main competitor, Zomato. Zomato reported a 71% increase in revenue for FY24, reaching Rs 12,114 crore. A large portion of Zomato’s revenue came from its food delivery business, which generated Rs 6,161 crore, and its grocery delivery service, Blinkit, which contributed Rs 2,301 crore. Zomato has also been consistently profitable, reporting a net profit of Rs 351 crore for FY24, further boosting its position in the market.
Swiggy Financial Performance
Swiggy’s core food delivery business grew by 17% in FY24, generating Rs 6,100 crore in gross revenue. The company’s quick commerce vertical, Instamart, also performed well, posting gross revenue of Rs 1,100 crore, more than doubling its earnings from the previous year. This growth was driven by high demand and a strong supply network, with approximately 14 million users transacting on Swiggy’s platform at a frequency of 4.5 times per month.
Management and Expense Control
Swiggy’s expenses rose by 8%, reaching Rs 13,947 crore in FY24. However, the company managed to reduce its losses through better financial management and operating leverage. Marketing and sales promotion expenses were reduced by 26%, dropping from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24. Employee benefit costs also decreased by 6%, amounting to Rs 2,012 crore.
IPO Plans for Fundraising
Swiggy’s gross order value (GOV) from its food delivery business, Instamart, and dining services reached Rs 35,272 crore ($4.2 billion) in FY24. The average order value for food delivery was Rs 428, contributing Rs 25,194 crore, while Instamart added Rs 8,350 crore.
In April 2024, Swiggy confidentially filed papers for a $1.25 billion IPO. The company plans to raise Rs 3,750 crore through a fresh equity issue and an offer for sale worth Rs 6,664 crore. Swiggy is aiming for a valuation between $12 billion and $15 billion as part of this public listing.
