Swiggy's revenue grows two fold in FY22, losses widen
The food delivery giant's expenses more than doubled in FY22 compared to last year.
Food delivery giant logged a two-fold increase in revenue during the fiscal year ended March 2022 compared to the previous year, helped by the better-than-expected performance of its grocery vertical Instamart.
The company earned a revenue of Rs 5,705 crore in FY22, up from Rs 2,457 crore in FY21. Income from rendering platform services grew over 83% to Rs 3,444 crore, from Rs 1,879 crore last year, making it the largest revenue contributor.
Revenue from the sale of grocery and FMCG products through Instamart grew more than 4X to Rs 2,036 crore this fiscal from Rs 517 crore in FY21, according to filings with the Ministry of Corporate Affairs (MCA).
Swiggy's cloud kitchen vertical, which hosts brands such as The Bowl Company, Goodness Kitchen, Breakfast Express, and Homely, logged a revenue of Rs 88 crore in FY22, a marginal increase from Rs 83 crore last year. Swiggy has been downsizing the vertical since last year.
However, the company's losses widened in FY22 to Rs 3,629 crore in FY22 against Rs 1,617 crore last year. Expenses shot up to Rs 9,574 crore from Rs 4,139 crore last fiscal, led by increase in the cost of product procurement and advertising expenses.
The gross merchandise value (GMV) of Swiggy's food delivery arm grew 40% in January-July 2022, Prosus, one of the company's biggest investors, said in a report last year. Swiggy recorded a 38% growth in orders in the first six months of the year, compared with the previous year.
The food delivery firm faces stiff competition with listed company . It raised $700 million in a round led by Invesco in early 2022. The company said that while the food delivery business has nearly doubled in gross order value (GOV) in the last year, this fundraise will enable Swiggy to further accelerate growth on the core platform and make meaningful investments to grow Instamart.
Edited by Affirunisa Kankudti