Swiggy clocks 40% growth in revenue H1 2024: Prosus
Swiggy managed to rein in its adjusted EBITDA loss during the first half while increasing its operations across cities according to Prosus's report.
Swiggy posted a 40% growth in its revenue to $750 million (Rs 6,300 crore) in the first half of 2024 from $536 million (Rs 4,500 crore) in the first half of the previous year, according to half-yearly disclosures filed by one of its largest investors, Prosus.
According to the filing, Swiggy managed to rein in its adjusted EBITDA loss to $85 million (Rs 700 crore) from $145 million (Rs 1,200 crore), marking an improvement of 41% in the company earnings.
“A rise in the scale of advertising campaigns led by self-serve tools and broad-based optimisation of indirect costs supported improved profitability,” stated Prosus.
These numbers reflect the company's finances from January 2024 to June 2024. Swiggy is expected to provide a breakdown of its second-quarter results, from July to September 2024, tomorrow with Indian exchanges.
Prosus, which owns 25% of Swiggy‘s stake after the company’s IPO in November, also said the company has managed to expand its operations to 681 cities during the period from 599 cities last year.
Its gross order value (GOV) which includes food delivery, quick commerce and out-of-home consumption patterns increased to 22% on a year-over-year basis.
“The quick commerce business grew GOV by 57%, as active dark stores grew to 557 from 1H24’s 421 stores, alongside expanding the size of dark stores to stock more items. This densification and expansion led to consumers benefiting from faster delivery speeds (12.6 minutes, versus 16.9 minutes last year) and available stock-keeping units (SKUs) on the network doubling to 19 200, driving up order values and improving contribution margins,” stated Prosus.
As part of Swiggy’s IPO, Prosus offloaded 10.9 crore shares in the offer for sale for approximately $500 million in gross proceeds. The internal rate of return (IRR) of its stake in Swiggy was 18%, based on the IPO price and the net proceeds of the sold stake. It made profits of $2 billion on total investment after Swiggy was listed on public markets.
Edited by Kanishk Singh