Swiggy doubles losses in Q1, sees 54% growth in topline driven by Instamart

Bengaluru-based consumertech platform Swiggy almost doubled its losses for the April-June period, even as revenue grew sharply on the back of continued momentum in its grocery delivery unit, Instamart.

The Sriharsha Majety-led company posted an operating revenue of Rs 4,961 crore, registering a 54% year-on-year increase. Consolidated net loss stood at Rs 1,197 crore, compared to Rs 1,081 crore in the previous quarter and Rs 611 crore in the year-ago period.

Quick commerce platform, Instamart, doubled its operating revenue to Rs 806 crore. On a sequential basis, its revenue grew by 17% from Rs 689, aided by the full-quarter contribution of dark stores added in Q4 FY25.

The company said it is now shifting focus from infrastructure investment to infrastructure leverage in quick commerce, in line with its commentary from the FY25 annual report earlier this week. During the quarter, the quick commerce segment posted a loss of Rs 797 crore, marginally higher on a sequential basis.

For the platform, Maxxsaver increases wallet-share from the user; and sometimes results in cart consolidation, resulting in a slightly lower number of orders by the same user. Its success and adoption helped our AOV leapfrog to INR 612 for the quarter, a 16% QoQ jump, stated Swiggy in its Shareholder letter.

Food delivery, Swiggy’s core business, saw stable growth amid a sluggish macro environment, with operating revenue growing 18% year-on-year to Rs 1800 crore. On a sequential basis, it grew by 10%.

In June, CEO Sriharsha Majety acknowledged intensifying competition in food delivery, particularly from Rapido, which has entered the space in key cities. However, he emphasised that Swiggy’s scale and user loyalty give it a strategic edge.

During the quarter, Swiggy also launched several initiatives to boost food ordering frequency, including a new lineup of high-protein meals and two rewards programmes for students and corporate professionals.

The company's platform innovation segment, which houses offerings like Swiggy-Minis, Swiggy Genie, Insanely Good, and Snacc- 10 min food delivery app, saw its revenue fall about 9% from the previous quarter to Rs 20 crore. During the period, losses on the segment further widened to Rs 52 crore from Rs 36 crore in the Q4.

"Snacc is significantly incremental to existing Food delivery volumes by design, since the proposition is for much lower-AOV meals which could be in the nature of snacks and beverages, basic meals, or other low-involvement fasteats. By the nature of the offering, we are currently figuring out the economic model for this service.'' stated the letter.

Swiggy’s performance comes days after Blinkit, the quick commerce arm of Eternal, reported a 135% YoY

rise in GOV and surpassed Zomato’s food delivery GOV for the first time. However, Swiggy the first one on the quick commerce race with Instamart is yet to see its GOV of Rs 5655 crore surpass GOV of its food delivery business at Rs 8086 crore.

Swiggy also recently reshuffled its board last week. Its venture capital representatives, Anand Daniel of Accel and Sumer Juneja of SoftBank, stepped down. Swiggy appointed Faraz Khalid, CEO of Middle-East-based ecommerce platform Noon, as its fourth independent director. The company said this move aligns with its long-term roadmap to strengthen corporate governance and enhance board independence ahead of a potential public listing.