Swiggy’s Q2 Conundrum, PhonePe Nets $600 Mn & More

Swiggy On A Sticky Wicket 

Swiggy’s Q2 results painted a complex picture of growth and mounting losses. The core food delivery segment continued to be the profit machine, while quick commerce vertical Instamart, despite heavy growth, continued to haemorrhage cash. 

Here is a quick snapshot of Swiggy’s Q2 FY26 numbers:

• Net loss widened 74.4% YoY to INR 1,092 Cr
• Operating revenue soared 54% YoY to INR 5,561 Cr
• Adjusted EBITDA loss zoomed 104% YoY to INR 695 Cr
• Food delivery vertical clocked a revenue of INR 1,923 Cr, up 22% YoY, against a profit of INR 251 Cr, up 109% YoY
• Instamart’s adjusted EBITDA loss surged 136% YoY to INR 849 Cr, while revenue doubled YoY to INR 980 Cr
• Supply chain and distribution vertical brought in a revenue of INR 2,560 Cr, while loss reduced 71% YoY to INR 18 Cr

Optimising Stores For Profitability: Swiggy opened 40 new dark stores in Q2, increasing its total network to over 1,100 across 128 cities. Notably, a quarter of these stores are now profitable, showing significant improvement in contribution margins. Instead of broad expansion, the company aims to maximise efficiency in its existing network, focussing on selective market penetration.

Road Ahead? Despite soaring revenues, Swiggy’s widening net loss underscores the investment-heavy path it is traversing. Nevertheless, the company is also planning an INR 10,000 Cr fundraise via a qualified institutional placement to double down on quick commerce. Instamart also plans to eventually move to an inventory-led model, just like Blinkit, to further bolster its margins. 

With much on its plate, can Swiggy convert its scale and operational improvements into a sustainable profit trajectory? While that is the next chapter in the foodtech major’s growth story, for now, here is how Swiggy fared in Q2. 

From The Editor’s Desk

💰 General Atlantic Doubles Down On PhonePe

• The IPO-bound fintech major has bagged a mega $600 Mn (INR 5,304 Cr) secondary investment from General Atlantic. With this, the VC firm has increased its stake in PhonePe to roughly 9% from 4.4% earlier.
• General Atlantic previously invested $550 (INR 4,800 Cr) Mn in PhonePe, making its total exposure in the fintech company to $1.15 Bn (INR 10,o00 Cr+) and placing it among the largest institutional backers in the Indian fintech ecosystem​.
• This fundraise follows PhonePe pre-filing its DRHP with the SEBI via the confidential route for an estimated INR 12,000 Cr IPO likely next year. 

🚀 Shiprocket Inches Closer To Profitability

• The IPO-bound logistics giant’s net loss shrank 87.5% YoY to INR 74.5 Cr in FY25, helped by margin improvements, growing top line from emerging segments and a 24% YoY increase in revenues to INR 1,632 Cr.
• Excluding INR 91 Cr in ESOP expenses, Shiprocket would have posted a profit. Meanwhile, it also turned cash EBITDA positive at INR 7 Cr, signalling operational efficiency gains and improved financial health.
• Founded in 2017, the Zomato-backed startup works with more than 17 courier partners to offer shipping solutions across India and over 200 countries. Shiprocket filed its DRHP earlier this year for an up to INR 2,500 Cr IPO.

📈 Groww Sets IPO Price Band

• The investment tech unicorn’s public issue will open for subscription on November 4. The company has set a price band of INR 95 to INR 100 per share, valuing the company at about INR 61,735 Cr at the upper band.
• Its IPO will comprise a fresh issue of shares worth INR 1,060 Cr and an OFS component of INR 5,572 Cr. The OFS will see participation from Tiger Global, Peak XV, Ribbit Capital and others.
• While the IPO has witnessed criticism for its OFS-heavy nature, what works for the platform is its network effects, diversified offerings and profitability.

💸 Dabur Floats INR 500 Cr Fund

• The FMCG giant has launched Dabur Ventures, an investment platform with a corpus of INR 500 Cr to back high-growth, D2C brands aligned with Dabur’s core sectors. It will back ventures across sectors such as healthcare, food and beverages, and wellness.
• With this, Dabur plans to diversify its portfolio while accelerating premiumisation and innovation-led growth. 
• Dabur’s new initiative mirrors similar moves by other FMCG heavyweights like HUL (which acquired Minimalist) and Heritage Foods (which picked up a majority stake in Get-A-Way) recently. 

Inc42 Markets

Inc42 Startup Spotlight

How Dropon Is Making Last-Mile Logistics Truly Green

As quick deliveries become the norm, traditional fleets struggle with high costs and pollution, creating a pressing need for sustainable logistics solutions. Enter Dropon, which tackles this challenge by offering a cost-effective, green alternative for urban consumers and businesses.

A Win-Win For All: Founded in 2023, Dropon offers on-demand hyperlocal deliveries powered exclusively by electric vehicles. Its platform connects customers with its fleet of delivery partners to ensure fast, reliable, and eco-friendly transport of groceries, documents, and ecommerce shipments. 

Inside The Tech Stack: What works for the startup is its real-time tracking, secure payments, and streamlined operations that make sustainable delivery accessible and practical. Since its inception, Dropon has completed over 4.35 Lakh deliveries in Ahmedabad, catering to urban residents, small businesses, and enterprises.

Scaling Sustainable Deliveries: Currently focussed on Ahmedabad, Dropon plans to capitalise on the expanding Indian hyperlocal delivery market. Competing with players like Shadowfax and Evify, Dropon aims to scale both its network and technological infrastructure to carve a niche in the rapidly evolving eco-friendly last-mile logistics space.

But can it truly reshape India’s urban logistics?

Infographic Of The Day

In late 2024, Zing entered the market with a bold promise – fresh meals delivered in 10 minutes. But hype met reality fast. Then came high costs, a data leak and employee exits, forcing Zing to shut down the model it started with.