Swiggy has recently launched three new standalone smartphone applications, marking the beginning of the year with a strategy to test separate apps while still offering a unified platform for all services. The food-tech company aims to expand its dark store area to 4 million sq. ft by March 2025. According to CFO Rahul Bothra, investments in Swiggy’s quick commerce division, Instamart, are expected to yield results as the company focuses on lowering delivery costs and boosting advertising revenue. In the October-December quarter, the average order value rose to ₹534, a 14% increase year-on-year, while delivery fulfillment costs reached an all-time low. Swiggy’s advertising revenue also saw a significant increase of 65%, totaling ₹751 crore in the December quarter. Bothra stated that these structural improvements and the maturation of newly opened stores will help achieve contribution margin break-even by the third quarter of FY26.
Despite these advancements, Swiggy’s losses increased to ₹799 crore in the October-December period, up from ₹574 crore the previous year, primarily due to increased investments in Instamart amid growing competition in the quick commerce sector. Operating revenue rose to ₹3,993 crore, compared to ₹3,048 crore the previous year. The company plans to add a significant number of stores, having already opened 96 in the December quarter and 86 in January, with more expected in the coming months.
The competition in quick commerce is intensifying, leading companies to invest heavily in expanding dark stores and hiring additional staff to ensure timely deliveries. Zomato has announced plans to accelerate its Blinkit expansion, aiming for 2,000 dark stores a year ahead of schedule, despite a 57% year-on-year drop in profit after tax due to Blinkit’s losses. In the instant food delivery market, Swiggy has introduced a new app, ‘Snacc,’ for 15-minute delivery of snacks and beverages, while its 10-minute delivery service, Bolt, has expanded to 425 cities, contributing to 9% of Swiggy’s overall performance.
