India’s food and grocery delivery giant Swiggy is making headlines again – this time not just for expansion, but for showing real signs of financial discipline. According to global investment firm Prosus, Swiggy cut its losses by 30% to $182 million in the financial year 2024, even as its quick commerce business recorded extraordinary growth.
The South African investor, one of Swiggy’s earliest and largest backers, released these figures as part of its annual report. The numbers reveal a clear shift in Swiggy’s strategy – from a cash-burning startup to a business steadily inching towards sustainable profitability. With adjusted EBITDA losses narrowing from $261 million the previous year to $182 million in FY24, the company appears to be reaping the benefits of strategic cost management and operational efficiency.
This turnaround comes at a time when its quick commerce division, Instamart, is scaling aggressively. Quick commerce GOV (gross order value) doubled in FY24, driven by strong consumer demand for fast, hyperlocal grocery deliveries. This segment has seen exponential growth over the past two years, fuelled by India’s growing appetite for convenience and speed.
In fact, during the first quarter of FY25, Swiggy’s quick commerce GOV surged by over 100% compared to the same period last year. The company has been expanding its dark store network, increasing inventory, and optimizing delivery routes – moves that have helped improve consumer experience but also added to short-term operating costs.
While Swiggy’s grocery arm is still in its investment phase, the food delivery business is already starting to yield positive results. Prosus confirmed that Swiggy’s core food delivery vertical has turned contribution-positive, marking a critical inflection point in the company’s financial journey. The food delivery segment recorded a contribution margin of nearly 3% in the first quarter of FY25, signaling a path to profitability that investors have long awaited.
However, the road ahead isn’t without challenges. The quick commerce vertical, despite its rapid growth, continues to be capital intensive. According to Prosus, the adjusted EBITDA margin for Instamart stood at –18%, indicating that while the unit is expanding, it’s still burning cash. Yet, Swiggy is optimistic about turning around the grocery business within the next 12–18 months.
Prosus, which holds nearly 25% stake in Swiggy, remains confident in the platform’s long-term potential. The investment giant stated that Swiggy is on track to breakeven at a consolidated level over the next few quarters. The fact that Swiggy managed to cut losses significantly while simultaneously doubling its grocery delivery value is seen as a sign of maturing business discipline.
The company’s IPO in November 2024 further underscored its growing credibility in the market. The public offering, one of the most anticipated in the Indian startup space, gave early investors like Prosus partial exits while cementing Swiggy’s reputation as one of the few tech unicorns that’s now focused on bottom-line performance.
Another interesting takeaway from Prosus’s report is Swiggy’s improving efficiency metrics. Reduced delivery costs, better customer retention, and stronger order frequency have helped the company improve margins across both food and grocery verticals. Moreover, the continued expansion of Instamart into Tier 2 cities indicates that the company sees long-term potential beyond metros.
Swiggy’s strategy appears clear – stabilize the food delivery business, scale quick commerce responsibly, and deliver on profitability milestones while staying ahead of customer expectations. As it faces growing competition from rivals like Zomato’s Blinkit and Zepto, Swiggy’s ability to balance growth with financial discipline will likely define its next chapter.
In summary, Swiggy cut losses by 30% to $182 million in 2024, while quick commerce GOV doubled – a rare feat in today’s startup economy. With Prosus reaffirming its confidence and both verticals showing clear momentum, Swiggy seems poised for a stronger, more profitable future.
