Swiggy's Food Delivery Sales up 17% to $1.43 BN in 1ST Half of FY24: Prosus

Online food delivery platform Swiggy's investor Prosus, in its financial filing, stated that Swiggy’s core food-delivery business grew 17 per cent and delivered gross merchandise value (GMV) of $1.43 billion in the first half of FY24.

"This was led by a rise in transacting users that drove double-digit order growth and inflation in AOV," Prosus said.

"Core food-delivery EBITDA losses in 1H24 shrunk 89 per cent, led by improvements in contribution margin and operating leverage. In combination, this reflects customer willingness to pay for convenience and restaurant willingness to advertise for growth," it added.

Prosus, which holds 32.7 per cent of the stake in Swiggy, mentioned trading losses reduced to $208 million.

Trading losses in the first half of the previous year were $321 million.

The company further said that the quick-commerce business made rapid strides as customer adoption drove order growth. Basket sizes grew well ahead of inflation.

Instamart’s store count ended the period 19 per cent higher in June, contributing to its GMV growth of 63 per cent, according to the company.

"With the platform focused on gaining scale and moving towards profitability in the 25 cities where it operates, Instamart’s first-half contribution losses fell by around 75 per cent," Prosus stated.

"Broader product selection, densification of the store network and faster delivery times have continued to aid customer acquisition and retention," it added.

Last month, US-based investment company Invesco increased Swiggy’s valuation to about $7.85 billion.

Earlier in May, Invesco slashed Swiggy's valuation in its holding to about $5.5 billion.

According to a newly-published disclosure, Invesco said that "it considers the valuation of similar public companies as a factor when reassessing the value of its private investments", reports TechCrunch.