Foodtech Decacorn Swiggy’s Loss Jumps To $545 Mn In 2022: Prosus

Food and grocery delivery major Swiggy’s loss jumped to $545 Mn in 2022 from $300 Mn in 2021, according to the annual report of Prosus, one of the biggest investors in the unicorn.

“Our share of Swiggy’s trading loss increased to $180 Mn (FY22: $100 Mn), driven by investment in Instamart, which peaked in the year,” Prosus said.

Prosus owns about 33% stake in Swiggy and its share of the foodtech platform’s loss stood at $180 Mn, which means Swiggy’s overall loss was at $545 Mn for the year.

“Our share of Swiggy’s revenue grew 40% (73%) to $297 Mn, reflecting higher average order values and increased revenue from delivery fees and advertising sales,” Prosus said in its report.

Based on Prosus’ numbers, Swiggy’s overall revenue grew to around $900 Mn during the year from $600 Mn in the previous year.

The core restaurant food-delivery business recorded GMV growth of 26% in 2022, while Instamart’s GMV grew 459%, Prosus said.

“In the last two reporting periods, Swiggy has concentrated on reactivating users, increasing monthly frequency and improving user conversion. The benefits are reflected in its results for FY23, with over 272 000 enabled restaurants on its platform, 155% of pre-pandemic levels, with GMV at $2.6 Bn,” Prosus said.

Prosus also said in its report that Swiggy redoubled its focus on the profitability of its core restaurant food-delivery business, which its CEO recently announced had turned profitable in March 2023 following an investment phase.

In May, Swiggy claimed to have achieved profitability in its food delivery business as of March 2023.

Meanwhile, Swiggy’s rival Zomato also said that its business, excluding quick commerce vertical Blinkit, turned adjusted EBITDA positive in Q4 FY23. Overall, Zomato’s net loss narrowed 48% year-on-year (YoY) to INR 187.6 Cr in the March quarter of 2023.

Zomato’s adjusted revenue for its food delivery business increased to INR 1,530 Cr in Q4 FY23 from INR 1,284 Cr in the corresponding quarter last year. Blinkit’s revenue surged nearly 21% to INR 363 Cr in Q4 FY23 from INR 301 Cr in the previous quarter.

Amid macroeconomic slowdown, funding winter, and valuation markdowns by investors, startups have increased focus on profitability. As part of this, they have been cutting costs through various means, including laying off employees.

Swiggy also fired 380 employees earlier this year. It also shut down business verticals which did not find proper product-market fit such as Handpicked, private label The Bowl Company in Delhi NCR.