Zomato Rival Beater has reported a substantial increase in its operating income and a significant reduction in losses for fiscal year 2024 (FY24).
The Bengaluru-based company achieved a 36% increase in operating revenue, reaching Rs 11,247 crore, according to its annual report. Along with this growth, Swiggy reduced its annual losses by 44%, bringing them down to Rs 2,350 crore.
Still far from Zomato
While Swiggy has shown significant improvement in its business, it still lags behind Deepinder Goyal-led Swiggy. Zomato.
In comparison, Zomato’s revenue rose 71% in FY24 to Rs 12,114 crore, with Rs 6,161 crore coming from its food delivery business and Rs 2,301 crore from its grocery delivery service, Blinkit.
In July, Blinkit had the largest market share in the fast commerce sector, with Swiggy’s Instamart in second place, followed by Zepto and BigBasket.
Moreover, the Gurugram-based food tech giant has been reporting consistent profits, which is a key growth driver for any company listed on Indian exchanges.
In it Fourth quarter of fiscal year 24Zomato reported a consolidated net profit of Rs 175 crore, up 26.8% from Rs 138 crore in Q3FY24. Overall, the company made a profit of Rs 351 crore in FY24.
Food delivery business growth surge
Swiggy’s core food delivery business grew 17%, generating Rs 6,100 crore in gross revenue for FY24.
Besides food delivery, its fast-commerce vertical, Instamart, posted gross revenue of Rs 1,100 crore during the year, more than double the Rs 500 crore it earned in the previous fiscal year.
“The continued growth over the past few years is driven by an upward momentum seen across both demand and supply side factors with (around) 14 million users transacting on our platform at a high frequency of (approximately) 4.5X. Profitability has improved dramatically YoY as the peak of investments in Instamart is now behind us and the business continues to grow rapidly; while the relatively more mature food delivery business is growing profitably,” Swiggy said.
Expenses and financial management
Swiggy’s expenses rose 8% in fiscal 2024 to Rs 13,947 crore. Despite the increase in expenses, the company benefited from improved operating leverage, which allowed it to reduce losses and focus on growth.
Notably, the company reduced marketing and sales promotions spend by 25.99% from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24. Employee benefit costs also fell 6% to Rs 2,012 crore.
The company’s gross order value from food delivery, Instamart and meals combined reached around Rs 35,272 crore (USD 4.2 billion) in FY24, driven by 1.4 crore transacting users per month.
The food delivery business, which had an average order value (AOV) of Rs 428, contributed Rs 25,194 crore ($3 billion) and Instamart contributed Rs 8,350 crore ($1 billion).
Fundraising through IPO
According to media reports, Swiggy has filed confidential documents for a $1.25 billion IPO in April This year, the company plans to raise up to Rs 3,750 crore through a fresh issue of equity shares and an offer for sale worth Rs 6,664 crore.
As part of this public listing, it is reportedly targeting a valuation of between $12 billion and $15 billion..
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