Swiggy Losses Widened To $556 Million In 2022, According To Prosus

Losses at food delivery platform Swiggy widened to over half a billion dollars in 2022, according to investment group Prosus.

The Netherlands-based firm's share of trading losses in Swiggy widened to $180 million from $100 million in 2021, driven by investment in the quick commerce business—Swiggy Instamart—which peaked during the year, it said in its annual report released on Tuesday. Which means Swiggy posted a loss of nearly $556 million for the calendar year 2022. Swiggy has an April-March financial year, but Prosus accounts have a lag of one quarter.

The private equity group invested $299 million during the financial year ended March.

Prosus' share of Swiggy's revenue stood at $297 million, up 40% from the previous year, driven by a higher average order value and revenue from delivery fees and advertising sales.

The private equity group held 32.38% effective interest in Bundl Technologies Pvt., the owner of the brand Swiggy, making it the single largest shareholder.

That puts Swiggy's total implied revenue at around $900 million, or Rs 7,305 crore, for the calendar year 2022. That compares with Zomato's revenue, which stood at Rs 7,079.4 crore in fiscal 2023.

Swiggy's gross merchandise value—the total value of goods sold by it—including delivery fees grew to $2.6 billion in 2022, up 13% from $2.3 billion. Swiggy's core food delivery business's GMV rose 26% year-on-year, while Instamart saw fivefold growth.

In fiscal 2023, Prosus said, Swiggy focused on its profitability journey, which is reflected in its financial performance.

"In the past two reporting periods, Swiggy has concentrated on reactivating users, increasing monthly frequency, and improving user conversion," it said. "The benefits are evident in its results for FY23."

It said Swiggy was "well-funded" to capitalise on recent momentum and well-positioned to improve its platform’s competitiveness by investing in product and technology.