Swiggy’s loss jumps 80% to $545 mn in FY23, says Prosus
Prosus reported that its share of loss in Swiggy rose to $180 million in FY23, up from $100 million in FY22, owing to investment in Instamart
- Jun 27, 2023,
- Updated Jun 27, 2023 8:42 PM IST
Indian food and grocery delivery platform Swiggy has experienced a significant increase in losses during the financial year (FY) 2023, said Dutch-listed tech investor Prosus in its annual report on Tuesday.
Swiggy CEO Sriharsha Majety acknowledged that the food delivery business had slowed globally and Swiggy was no exception.
As a majority shareholder with 33 per cent in the Bengaluru based startup, Prosus reported that its share of loss in Bengaluru-based Swiggy rose to $180 million in FY23, up from $100 million in FY22. This increase was attributed to investments in Instamart, Swiggy’s quick-commerce arm, which 'peaked' in the year.
Swiggy, however, stated that its peak investments in Instamart was behind the company.
Swiggy's losses for the entire FY23 amounted to approximately $545 million, representing an 80 per cent increase compared to around $300 million in FY22.
Similarly, Prosus disclosed that its share of revenue in Swiggy grew by 40 per cent to $297 million in FY23, indicating Swiggy's full-year revenue for FY23 to be around $900 million.
Prosus highlighted Swiggy’s focus on reactivating users, increasing monthly frequency and improving user conversion as factors reflected in the company’s FY23 results.
"In the last two reporting periods, Swiggy has concentrated on reactivating users, increasing monthly frequency and improving user conversion. The benefits are reflected in its results for FY23," Prosus said in its FY23 annual report.
"Our share of Swiggy’s trading loss increased to $180 million (FY22: $100 million), driven by investment in Instamart, which peaked in the year," the report added.
Swiggy’s increased losses occurred at a time when Majety announced that the company’s core business, food delivery, turned profitable in March 2023, excluding ESOP costs and was on a path to profitability.
"Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception," Majety said back in March.
According to Prosus' filings, Swiggy's gross merchandise value (GMV) only grew to $2.6 billion in FY23, up from $2.3 billion in FY22, representing a modest increase of approximately 13 per cent.
Swiggy's growth in GMV was primarily driven by an expanded restaurant base, with over 272,000 enabled restaurants on its platform, up from approximately 197,000 in FY22.
Despite Swiggy's minimal growth rate, its GMV remained significantly below that of its closest competitor, Zomato. In its filings, Gurugram-based Zomato stated that its GMV reached approximately $3.2 billion in FY23, up from around $2.7 billion in FY22.
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Indian food and grocery delivery platform Swiggy has experienced a significant increase in losses during the financial year (FY) 2023, said Dutch-listed tech investor Prosus in its annual report on Tuesday.
Swiggy CEO Sriharsha Majety acknowledged that the food delivery business had slowed globally and Swiggy was no exception.
As a majority shareholder with 33 per cent in the Bengaluru based startup, Prosus reported that its share of loss in Bengaluru-based Swiggy rose to $180 million in FY23, up from $100 million in FY22. This increase was attributed to investments in Instamart, Swiggy’s quick-commerce arm, which 'peaked' in the year.
Swiggy, however, stated that its peak investments in Instamart was behind the company.
Swiggy's losses for the entire FY23 amounted to approximately $545 million, representing an 80 per cent increase compared to around $300 million in FY22.
Similarly, Prosus disclosed that its share of revenue in Swiggy grew by 40 per cent to $297 million in FY23, indicating Swiggy's full-year revenue for FY23 to be around $900 million.
Prosus highlighted Swiggy’s focus on reactivating users, increasing monthly frequency and improving user conversion as factors reflected in the company’s FY23 results.
"In the last two reporting periods, Swiggy has concentrated on reactivating users, increasing monthly frequency and improving user conversion. The benefits are reflected in its results for FY23," Prosus said in its FY23 annual report.
"Our share of Swiggy’s trading loss increased to $180 million (FY22: $100 million), driven by investment in Instamart, which peaked in the year," the report added.
Swiggy’s increased losses occurred at a time when Majety announced that the company’s core business, food delivery, turned profitable in March 2023, excluding ESOP costs and was on a path to profitability.
"Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception," Majety said back in March.
According to Prosus' filings, Swiggy's gross merchandise value (GMV) only grew to $2.6 billion in FY23, up from $2.3 billion in FY22, representing a modest increase of approximately 13 per cent.
Swiggy's growth in GMV was primarily driven by an expanded restaurant base, with over 272,000 enabled restaurants on its platform, up from approximately 197,000 in FY22.
Despite Swiggy's minimal growth rate, its GMV remained significantly below that of its closest competitor, Zomato. In its filings, Gurugram-based Zomato stated that its GMV reached approximately $3.2 billion in FY23, up from around $2.7 billion in FY22.
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