Newsletter
Swiggy’s Q1 forecast came in and here are all the numbers you need to know. Net loss shrank and revenue surged.
Key numbers:
- Net loss: shrank 34% YoY to ₹791 crore (vs ₹1,197 crore last year).
- Revenue: jumped 37% YoY to ₹6,812 crore, driven by quick commerce.
- Average monthly transacting users (MTUs): grew 27.4% YoY to 27.5 million.
What are the key drivers: quick commerce continues to be Swiggy's biggest growth engine. Gross order value (GOV) in the segment surged nearly 40% YoY to ₹7,907 crore, driven by a larger dark-store network, higher average order values and growing demand for non-grocery categories.
More importantly, the business reached contribution breakeven, a key milestone that signals a path to better profitability as it scales. Meanwhile, the core food delivery business remained resilient. GOV rose 17.4%, while monthly transacting users climbed to 19.2 million.
The company also highlighted strong traction in newer offerings. 99 Store continues to gain momentum, while Toing has expanded to 50 cities, with investments currently focused on customer acquisition. Bolt is now live in 700+ cities, and Eat Right contributes around 15% of food delivery volumes, with customers placing higher-value orders.
The timing: the company is also reshaping its leadership as it doubles down on quick commerce. The company has appointed former Myntra chief Nandita Sinha as the new CEO of Instamart, replacing Amitesh Kumar Jha, at a time when competition from Blinkit, Zepto, Flipkart Minutes and Amazon is intensifying.
The leadership change signals a stronger focus on scaling Instamart while improving profitability. Even as Swiggy continues investing in expanding its dark-store network, revenue is now growing faster than expenses, helping moderate quick-commerce losses while its core food delivery business continues to generate profits.
The bigger picture: quick commerce, which was once a niche service has exploded into a ₹65,600-crore market, growing nearly 24x since 2022. Today, quick commerce accounts for around two-thirds of all online grocery orders and 10% of India's e-retail spending, fuelled by rising smartphone adoption, digital payments and changing consumer habits.
The race is only getting fiercer. Rival Blinkit recently reported a 552% jump in revenue, underscoring the breakneck growth of the sector. Together, the results from Swiggy and Blinkit show that while competition is intensifying, India's quick-commerce boom is far from over.
