Food delivery professional Swiggy said on Friday that its net loss nearly doubled in the fourth quarter of the company’s merger, and its fast business Instamart is expected to reduce its future losses ₹10.8118 million ₹55.47 million a year ago. At the same time, income increased to ₹45.307 million ₹314.32 million in the same period last year.
“We believe that Instamart reached the peak of adjusted ebitda (earnings before interest, tax, depreciation and amortization) losses in late-Q4 and from here on, we expect to progressively unwind losses, the pace of which will be determined by our expansion of AOV and take-rates, and the nature and quantum of competitive intensity,” Swiggy’s co-founder and group CEO Sriharsha Majety said in the shareholder letter. AOV refers to the average order value.
Broadly speaking, Majety stressed that the fast-moving business sector is in a phase of rapid expansion of growing consumer aspirations and competitive intensity. Instamart added new cities to its network in the fourth quarter and increased its dark stores to 316 stores.
He further clarified that the company had a strict burden on overall fixed costs and expected the trajectory to continue, although there may be a certain amount of investment in some quarters to achieve growth at its other apex.
Please read also: €1,081 crore, revenue growth of 45%’>Swiggy Q4 results: Net loss almost doubled ₹1081 million, revenue growth of 45%
Swiggy’s revenue grew to 25th fiscal year throughout the fiscal year ₹15,623 million ₹One year ago, 116.34 million. Its losses have also expanded to ₹31.168 million ₹FY235.02 billion.
By contrast, Zomato, a rival recently renamed Eternal, reported profits ₹The fourth quarter was 390 million ₹1.75 million a year ago. Its revenue in the fourth quarter of fiscal 25 was in ₹6,2011 million, compared to ₹Fiscal Year 379.7 billion fiscal year 24.
In recent months, rapid activity in the commercial sector has increased as Zomato’s Blinkit and Zepto are also adding more stores to higher levels of demand, which has expanded to level II cities, non-grocery categories, and food delivery services outside of users.
Swiggy’s Majety explained that the company added more dark stores in the fourth quarter than the last eight quarters. “We get MTU (monthly transaction users) than the sum of the past six quarters. While nearly 500 dark stores have added in fiscal 25 years, almost half of them are less than a year, and the average age of these stores is about four months.
Please read also: Zomato, swiggy, Zepto under the fire; Shiv Sena UBT leader demands Mumbai police to act hard on the crime of delivering agents
Swiggy Instamart’s average order value increased by 13.3% year-on-year ₹527, headed by extended choices and value packages. “As cyber economics improve with better AOV and growing yields and lower customer incentives, we expect losses to begin to relax. However, the intensity of competition may remain high in the near term, which may determine the rate of improvement,” the company said in its shareholder letter.
The overall order value of its food delivery business has somewhat shrunk due to wider consumption slowdowns. The total order value of the food delivery business is slightly immersed ₹73.47 million ₹The last quarter was 74.36 million.
While the company maintained its annual growth guidance of 18-22% in the medium term, Swiggy explained that the fourth quarter had a slow start and was less seasonal after the festival, but eventually recovered due to popular sporting events. Bolt is its fast food delivery program and has also seen good appeal, contributing over 12% of orders.
Please read also: Fast Business Coming Upcoming DMART’s Grass
Swiggy’s outdoor consumption segment has been profitable as it records 41.6% of Gov (total order value) growth to ₹The fourth quarter was 8.72 million. Newer initiatives such as SNACC (fast delivery low-involving food consumption occasions) and Pyng (a platform that connects with proven professionals), these programs are part of the platform’s innovations, and are currently in the experimental phase, with initial investments expanding to certain key qualities.
