Swiggy's Q1 losses rise to ₹611 crore despite revenue surge
What's the story
Swiggy, a leading player in India's food-tech industry, has reported an 8% increase in losses for Q1 FY25.
The company's losses rose to ₹611 crore from ₹564 crore during the same period last year.
This financial setback is attributed to a significant rise in expenses, as detailed in the firm's updated draft red herring prospectus (DRHP).
Expense increase
Swiggy's operational expenses surge by 27%
Swiggy's operational expenses for the first quarter of FY25 amounted to ₹3,908 crore, marking a 27% increase from the previous year's figure of ₹3,073 crore.
Despite this financial challenge, the company managed to achieve a substantial revenue growth during the same period.
The firm's revenue from operations rose by 35% to reach ₹3,222.2 crore in Q1 FY25, up from ₹2,389.8 crore recorded in Q1 FY24.
Annual performance
Swiggy's annual revenue growth outpaces loss reduction
On an annual basis, Swiggy's revenue for FY24 grew by 36% to ₹11,247 crore from ₹8,265 crore in the previous fiscal year.
The company also managed to reduce its losses by 44% to ₹2,350 crore from a high of ₹4,179 crore.
This improvement was largely due to more stringent control over expenses.
Quick commerce performance
Swiggy Instamart reports significant revenue growth
Swiggy Instamart, the company's quick commerce division, reported a remarkable revenue growth of 108% in Q1 FY25, reaching ₹374 crore.
This performance indicates a strong market presence and potential for future growth in this sector.
Despite these financial challenges and intense competition from rivals like Zomato, Swiggy continues to narrow the gap as it prepares for its stock market debut later this year.