IPO-Bound Swiggy’s Revenue Soars 24% In 2023, GOV Jumps 26% YoY: Prosus

IPO-bound Swiggy posted a 24% jump in its revenue in the calendar year 2023, excluding mergers and acquisitions, Dutch investment firm Prosus said in its 2024 annual report.

Additionally, the foodtech decacorn saw a 26% year-on-year increase in gross order value (GOV) and its “ever transacted” user base touched the 104 Mn mark at the end of December 2023.

“Swiggy’s core food-delivery business, GOV, grew by double digits on healthy order growth and higher average order value. Operating leverage improved as the business added revenue streams like restaurant advertising and introduced nominal platform fees which supported improved operational profitability,” Prosus said.

Meanwhile, Swiggy’s quick commerce business Instamart clocked a higher GOV than that of the ecommerce industry, fueled by geographical penetration and stock-keeping unit expansion. Its unit economics continued to improve on the back of larger basket sizes, larger user base, and improved operational efficiency, the report added.

Earlier this year, Inc42 reported that Swiggy was poised to report about INR 10K Cr in revenue in FY24, fueled by the rise in its Instamart orders, platform fees related to food delivery, and growing popularity of its dining out business.

Swiggy primarily competes with Zomato in the food delivery industry. Like Instamart, Zomato also has a strong presence in the quick commerce segment via Blinkit. Zomato posted a profit of INR 351 Cr in the financial year 2023-24 (FY24) as against a loss of INR 971 Cr in FY23. Operating revenue increased 67% year-on-year to INR 12,114 Cr during the last financial year. 

For Zomato, Blinkit has emerged as the key growth driver over the last few quarters, with the quick commerce segment seeing rapid growth in GOV and outpacing the food delivery business. 

The latest development comes at a time when Swiggy is gearing up for its public listing. In April, Swiggy filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India via the confidential route for its initial public offering.

The Bengaluru-based startup’s IPO offer will include fresh issue of shares worth INR 3,750.1 Cr (about $449 Mn) and an offer-for-sale component worth INR 6,664 Cr (around $799 Mn), as per regulatory filings.  

In May, Swiggy re-introduced its homestyle meal delivery service, Swiggy Daily, after a four-year hiatus.

Earlier this month, the Bengaluru-based startup also relaunched its gourmet grocery delivery service ‘Handpicked’. Last week, the company also rolled out a new initiative to help restaurants with staff recruitment.

In the run up to its public listing, US-based asset manager Baron Capital marked up Swiggy’s valuation by 25% to $15.1 Bn from $12.1 Bn earlier.