Swiggy clocked $2.6B in GMV for FY 2023: Prosus report

Foodtech major Swiggy recorded higher Average Order Value, recording increased revenue from delivery fee and advertising sales for FY 2023, according to financial results published by its largest investor and global consumer internet group, Prosus. The food delivery platform clocked $2.6 billion in GMV for FY 2023.

Amsterdam-headquartered Prosus also pared its effective interest in edtech major BYJU'S down to 9.6%, down from 9.81% in FY 2022, owing to the resignation of Russell Dresisenstock from the company’s board. The technology investor has slashed the valuation of the edtech company to $5.1 billion, per media reports.

Among its India portfolio, Prosus holds 32.83% effective interest in Swiggy–the largest in any Indian startup. 

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Swiggy’s numbers

According to the annual financial report, Prosus’ share in Swiggy’s overall revenue grew by 40% year-on-year to $297 million for FY 2023, up from $212 million in FY 2022. Overall, Prosus’ share in Swiggy’s losses increased to $180 million for FY 2023 driven by its investment in Instamart. 

Extrapolating this on a company level, Swiggy’s overall annual revenue stood at $900 million approximately for FY 2023, with overall losses of $545.5 million for the year. 

Bengaluru-based Swiggy’s restaurant food delivery business grew 26% in GMV terms year-on-year for FY 2023 to $2.6 billion. Swiggy currently has 2.72 lakh restaurant partners on its platform. Its quick-commerce business Instamart saw a GMV growth of 459% year-on-year. 

GMV or Gross Merchandise Value denotes sales recorded by an ecommerce platform over a fixed period of time. 

“Swiggy also focused on its profitability journey, which is reflected in its financial performance, in the past two reporting periods. Swiggy has concentrated on reactivating users, increasing monthly frequency and improving user conversion,” said the Prosus report. 

According to media reports, Swiggy is targeting profitability by the last quarter of 2023 to prepare for its public market debut in the coming year. In a company blog earlier this year, Swiggy CEO Sriharsha Majety said that the company’s food delivery business had turned profitable for the financial year ending March 31, 2023. 

“Swiggy is currently engaged in restaurant food-delivery, quick-commerce, concierge services (Genie) and other convenience offerings, serviced through its network of around 3.74 lakh delivery partners. In FY23, the company expanded into the dining-out space by acquiring Dineout, a leading dining and restaurant tech solutions platform in India, enhancing its portfolio of consumer convenience offerings," said the report.

"Swiggy has also launched an innovative subscription programme, Swiggy One, a multicategory loyalty programme across its restaurant food-delivery, quick-commerce, Dineout and concierge service,” it said, adding that the company was well-funded to capitalise on the momentum. 

Additional investments

During the year, Prosus increased its investment in PharmEasy, taking its effective interest in the company to 13.43% from 13.24% in the previous financial year. 

PayU, the payment services provider (PSP) of Prosus, continued to count India as its largest market with 51% contribution to revenue from India business. The Total Payment Value or TPV from India grew by 33% to $58 billion, corresponding to transaction growth of 25% to 1.4 billion during the reporting period. PayU’s India business generated revenue of $399 million, up 31% from the year-ago period. This was driven by growth in enterprise and SMBs customers as well as diversification into new customer segments such as government merchants, omnichannel businesses, and other products.

Prosus also announced removal of cross-holding with Naspers, the South African consumer internet group, allowing open-ended buyback to continue. 

(Infographics by Nihar Apte.)

The copy was updated with infographics and BYJU'S valuation.