Swiggy evaluating inventory model for Q-com, but won’t rush shift: Swiggy CFO Bothra
Swiggy is closely assessing the commercial trade-offs and potential downsides of shifting to an inventory-led model for Instamart, its quick commerce arm, as the segment’s losses continue to widen.
Swiggy is evaluating the potential shift to an inventory-led model for its quick commerce arm but is unlikely to make an inorganic move in the near term, according to group CFO Rahul Bothra.
"From an overall economic standpoint, we believe the magnitude of the difference is unlikely to exceed 30 to 35 basis points. However, this also ties back to inventory holding on the balance sheet, which impacts working capital," Group CFO Rahul Bothra shared in a post earnings call with analysts.
"So, it's ultimately a choice to be made regarding the commercial model. We think it provides some added flexibility, which is a fair point. But at the same time, the commercials don't necessarily justify taking an inorganic route to get there," he added.
While, Swiggy's domestic ownership is steadily growing since its public debut in November last year, the platform is holding out for the right timing to shift towards an inventory model as opposed to the current marketplace model it operates on.
Swiggy's quick commerce operations saw its gross order value (GOV) grow 19.5% to Rs 4,670 crore, while its revenue from operations doubled to Rs 733 crore in the current quarter.
Swiggy drove this growth by adding 316 dark stores in the quarter, more than it added in the past eight quarters combined, while clocking 9.8 million monthly transacting users, the highest gain in six quarters. It average order value also grew to Rs 527 crore helped by its larger assortment stores.
However, this pulled its bottomline further into the red inflating its losses to Rs 1,081 crore. While, Swiggy has earlier expected to turn profitable by the December this year, the company is now looking at a flexible breakeven guidance to from December this year to June next year.
Dine-Out turns profitable
Swiggy out-of-home consumption business which offers restaurant dining solutions and access to outdoor events turned profitable, while clocking 42% YoY GOV growth.
The segment posted marginal quarter over quarter growth to post adjusted revenues of Rs 71 crore. On a year-over-year level, the growth was 31%.
On a consolidated level, Swiggy saw its operating revenue increased 45% to Rs 4,410 crore in the quarter ended March 2025, up from Rs 3,045 crore in FY24. During the same period, its losses widened to losses widen to Rs 1,081 crore from Rs 553.6 crore in the previous year. On a quarter-over-quarter basis, the company's losses grew by 35% from Rs 799 crore.
On a similar track, Swiggy rival Eternal saw its profits shrink for the second consecutive quarter, clocking a sharp 77% fall in net profit to Rs 39 crore, from Rs 175 crore a year earlier. It posted an over 67% growth in its consolidated operating revenue to Rs 5,833 crore.
Edited by Jyoti Narayan