Swiggy’s Financial Performance in FY 2023-24
Food delivery giant Swiggy has reported a significant growth in its financial performance for the fiscal year 2023-24. The company recorded a remarkable 36% increase in revenue, reaching Rs 11,247 crore, compared to Rs 8,265 crore in the previous fiscal year. More impressively, Swiggy’s losses have notably reduced by 44%, totaling Rs 2,350 crore this year as opposed to Rs 4,179 crore in FY 2022-23.
Comparison with Competitor Zomato
While Swiggy’s revenue growth is commendable, it still lags slightly behind its main competitor, Zomato, which reported a revenue of Rs 12,114 crore for the same period. Zomato not only achieved this revenue growth but also turned a profit of Rs 351 crore in FY 2023-24, presenting a benchmark that Swiggy aims to surpass. Despite the losses, Swiggy’s core business has remained robust, contributing to its overall growth.
IPO Preparations
One of the key strategic moves for Swiggy is its preparation for an initial public offering (IPO). The company filed its IPO papers with the Securities and Exchange Board of India (SEBI) on April 26, adopting a confidential route, which indicates its serious intent to capitalize on market conditions and investor interest later this year.
Expense Management and Cost Cutting
A significant factor contributing to the reduction in Swiggy’s losses is its effective expense management. In FY 2024, the company’s total expenses were recorded at Rs 13,947 crore, an 8% decrease from Rs 12,884 crore the previous year. Notably, the expenditure on promotion and marketing also saw a decline, dropping to Rs 1,851 crore from Rs 2,501 crore in FY 2023.
Gross Order Value and Monthly Transactions
| Metric | Swiggy | Zomato |
|---|---|---|
| Gross Order Value (GOV) | $4.2 billion | $5.85 billion |
| Monthly Transacting Users (MTU) | 14.3 million | 19 million |
In terms of performance metrics, Swiggy’s Gross Order Value (GOV) rose to $4.2 billion, a year-on-year increase of 26%. The platform achieved a significant user base, with 14.3 million monthly transacting users (MTU), although this figure still trails behind Zomato’s 19 million MTUs.
Competition in Quick Commerce
Switching focus to the quick commerce sector, Swiggy’s Instamart faces tough competition from Zomato’s BlinkIt. Instamart reported a revenue of Rs 1,100 crore for FY 2024, whereas BlinkIt surpassed it with a revenue of Rs 2,301 crore. Instamart operates in 27 cities, maintaining a varied inventory with 17,000 stock keeping units (SKUs) and 523 active dark stores.
Conclusion
As Swiggy navigates through intense competition and focuses on profitability, its strategic initiatives in cost management and upcoming IPO are pivotal for its future growth. The food delivery sector continues to evolve, and Swiggy’s performance will be crucial to watch in the coming quarters as it seeks to catch up with its competitors.
