Sriharsha Majety notes that food services account for just 9-12 per cent of total food consumption in India compared to much higher levels in other major economies
Highlighting that food services account for just 9 to 12 per cent of total food consumption in India compared to much higher levels in other major economies, Sriharsha Majety, Swiggy’s Co-founder, has stated that the online food delivery and organised retail markets remain significantly underpenetrated.
Quick commerce, still nascent, is expected to grow at a 53 to 78 per cent compounded annual growth rate (CAGR) between 2024 and 2028, driven by increasingly busy lifestyles and evolving consumer expectations for immediacy and convenience, Majety highlighted in the company’s annual report.
“These trends present a significant opportunity to expand into new categories, improve average order values and drive greater frequency of use. As we look ahead, our priorities remain clear: driving growth through consumer-backed innovation, enhancing value and convenience for our users, empowering our partners and delivery associates, and building a resilient, responsible and sustainable business,” he stated.
The company’s food delivery business continued to strengthen in FY 2024-25, with gross order value (GOV) growing 16.4 per cent year-on-year, supported by user growth, larger basket sizes and rising advertising revenues, the Managing Director (MD) and group Chief Executive Officer (CEO) explained. Average monthly transacting users grew over 15 per cent, driven in part by cross-pollination from Instamart, with approximately 29 per cent of new Instamart users being new to Swiggy overall.
“After a period of intensifying investments over the second half, we expect the business margins to improve, driven by operating leverage, growing wallet share and a broadening consumer base as we continue to balance investments with sustainable growth and profitability,” he added.
The company’s out-of-home consumption segment, comprising dineout (in-restaurant dining solutions) and scenes (bookings for in-restaurant curated live events), addresses a significant market opportunity that remains underpenetrated even in India’s top cities. The segment delivered healthy performance in FY 2024-25, with GOV growing 41.3 per cent year-on-year (YoY).
