Swiggy's Q1 losses double to ₹1,197cr, revenue rises 54%
quick commerce competition
even as the company itself slowed down on dark store expansion.
For the April-June period, Swiggy's net loss doubled year-on-year to Rs 1,197 crore, while it spent Rs 1,053 crore of cash on a net basis, after accounting for operating, investing, and financing activities. The Bengaluru-based company's operating revenue for the quarter increased 54% to Rs 4,961 crore.
The Bengaluru-based company also said that it is looking to offload its 12% stake in urban mobility startup Rapido, which has announced plans to enter the food delivery segment. Swiggy had invested around Rs 1,050 crore in the bike-taxi platform in 2022, and its stake is currently worth Rs 1,400-1,500 crore as per Rapido's last round valuation.
'When we got into Rapido, it was a mobility player doing really well and we wanted to partner with them on that journey. We've even had conversations with them on a partnership in food delivery but unfortunately that didn't materialise and they've decided to get into the business themselves. That's just a wedge…and we're planning to go separate ways on this,' said Sriharsha Majety, Swiggy's group CEO.
In a conversation with ET, the company's CFO Rahul Bothra said that while Swiggy hasn't finalised a timeline to sell its stake in Rapido, it has received inbound interest from multiple buyers.
During the three-month period ending June 30, Instamart, Swiggy's quick commerce business, added only 42 dark stores, compared to the 316 such micro-warehouses it had added in the January-March quarter. However, the number of orders Instamart clocked per dark store per day during the quarter fell to 985 from 1,190 in the March quarter.
As of June 30, the company had a consolidated cash balance of Rs 5,354 crore. This compares to Rs 6,695 crore three months earlier and Rs 8,183 crore following its initial public offering in November 2024. So far, the company has burnt through nearly half of its nearly ₹4,500 crore in capital raised from the IPO. By comparison, Swiggy's key rival Eternal had ₹18,557 crore in closing cash balance as of June 30. Bothra said in a post-earnings conference call that the company had a strong balance sheet. 'We have sufficient cash balance to make investments,' he said, when asked if the company was planning to raise additional capital.
Instamart logged a ₹896-crore loss — with a negative 15.8% margin — even as gross order value (GOV) more than doubled year-on-year to ₹5,655 crore. Analysts said the decline may indicate that Swiggy expanded more quickly than it was able bring in demand but the company said it has taken steps to raise its average order value (AOV) by pushing its bulk order feature, Maxxsaver, and cutting down on low-value orders by increasing the minimum order size required for free delivery.
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