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Food delivery platform Swiggy nearly doubled its losses in the fourth quarter to ₹1,081 crore, compared with ₹554 crore in the same period last year. Meanwhile, revenue from operations rose 45 per cent year-on-year to ₹4,410 crore.
The losses widened primarily due to aggressive spending on its quick commerce delivery business, Instamart, as it has ramped up investments in customer acquisition, dark store expansion, and marketing to defend its market share, leading to higher operating costs.
The gross order value (GOV) surged 40 per cent y-o-y to ₹12,888 crore in Q4FY25, driven by strong growth across its business verticals. However, the company’s consolidated adjusted EBITDA loss widened to ₹732 crore, due to ramp-up of investments in Instamart.
Sriharsha Majety, MD & Group CEO, Swiggy, said: “FY25 was a year of many firsts for Swiggy. We launched multiple new apps, across Instamart, Snacc and recently, Pyng; all of which are aimed at opening up new user-segments and markets. Our food delivery engine delivered best-ever results across innovation and execution, driving category-leading growth and rising profitability in lockstep. Quick-commerce is in a phase of rapid expansion and heightened competitive intensity, for which we have ramped-up investments aimed at market expansion, reach and differentiation. Our Out of Home Consumption business turned profitable in Q4, within just 2 years of its integration. Overall, we remain focused on growth, on the back of delivering unparalleled convenience to consumers.”
Food delivery and Instamart
The food delivery business reported a 17.6 per cent y-o-y growth in GOV, reaching ₹7,347 crore. Adjusted EBITDA margins for the segment improved to 2.9 per cent of GOV, compared with just 0.5 per cent a year ago.
The growth was supported by innovative offerings, including the premium subscription program One BLCK and faster deliveries through the Bolt service, which now powers 12 per cent of all food delivery orders.
As for quick commerce, the GOV doubled on a year on year basis and stood at ₹4,760 crore. The segment recorded an EBITDA of ₹-840 crore with an adjusted EBITDA margin of -18 per cent.
For Instamart, the company has added 316 dark stores in the January-March period, taking its store count to 1,021, as it looks to intensify the competition in a rapidly evolving industry. The company has nearly doubled its store count from 523 on a year on year basis and has opened around 300 stores in the last two quarters.
“Since a significant chunk of new stores and users were added over the latter half of the Q3FY24, their order contribution in Q4 was muted. GOV growth ramped up further to 101 per cent y-o-y. With a lifetime-high proportion of 316 added news dark stores added on base of 705 combined with high competitive intensity, the past quarter witnessed the peak of investments into Quick-commerce. As a result, contribution margins declined 100 bps QoQ to -5.6 per cent, and Adjusted EBITDA losses increased to ₹840 crore. We believe that Instamart reached the peak of adjusted EBITDA losses in late Q4; and from hereon, we expect to progressively unwind losses,“ the company said in a letter to its shareholders.
Swiggy’s out-of-home consumption segment turned profitable, recording a 42 per cent y-o-y growth in GOV and achieving an adjusted EBITDA margin of 0.3 per cent of GOV.
On the user front, the platform’s average monthly transacting users (MTUs) grew 35 per cent y-o-y to reach 19.8 million, with 35 per cent of users utilising more than one service on the platform. This multi-service usage has been a key driver of customer retention and growth.
Report by Rohan Das, an intern with businessline
Published on May 9, 2025
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