Swiggy, one of India’s leading food delivery platforms, reported a significant 36% increase in its core business revenue, reaching ₹11,247 crore in FY24, up from ₹8,265 crore in FY23.
This growth comes as the company continues to make strides in improving profitability and preparing for its much-anticipated IPO, which is expected later this year. The Bengaluru-based company also managed to cut its losses by 44%, reducing them from ₹4,179 crore in FY23 to ₹2,350 crore in FY24, primarily through stronger control over expenses.
Swiggy filed its draft IPO papers via the confidential route with the Securities and Exchange Board of India (SEBI) in April 2024. This move aligns with the growing pressure from public market investors for new-age companies to either turn profitable or demonstrate a clear path toward profitability before listing.
Despite the robust growth, Swiggy continues to trail behind its main competitor, Zomato. Gurugram-based Zomato generated ₹12,114 crore in revenue during FY24, outpacing Swiggy’s figures. Additionally, Zomato recorded a profit of ₹351 crore, whereas Swiggy is still working to turn its financials around with a reported loss of ₹2,350 crore.
Swiggy attributed its improved financial health to more controlled spending, particularly in areas like promotion and marketing. The company spent ₹13,947 crore in FY24, a reduction from ₹12,884 crore in FY23. Promotional expenses alone were down 26%, from ₹2,501 crore in FY23 to ₹1,851 crore in FY24.
The company’s annual report highlighted that its profitability is improving YoY, with Instamart, its quick-commerce division, growing rapidly while its food delivery business continues to scale profitably. Swiggy’s platform now sees around 14 million active users, with an average frequency of 4.5 transactions per user.
Have Your Say
Do you think Swiggy’s rapid revenue growth will help it close the gap with Zomato? How do you view their potential to turn profitable in the coming years? Share your thoughts in the comments below!
