Prosus, the largest shareholder in Swiggy, revealed a 35 per cent reduction in its share of the Indian food-delivery giant’s losses, amounting to USD 208 million for the half-year period ending on 30 September.
Prosus, based in Amsterdam and affiliated with the South African conglomerate Naspers, holds a 32.7 per cent stake in Swiggy. Considering Prosus’s stake size, Swiggy’s overall loss for the first half of FY24 is estimated at approximately USD 636 million.
Swiggy, with its major businesses including the core food-delivery platform and the quick-commerce venture Instamart, experienced a 28 per cent growth in overall gross merchandise value (GMV).
The core food business achieved a 17 per cent GMV growth, reaching USD 1.43 billion in the first half. This growth was attributed to double-digit increases in transacting users and inflation in the average order value (AOV). Prosus clarified that the GMV calculation excludes canceled orders and includes fees paid to delivery workers.
Prosus reported that the food-delivery arm’s operating loss decreased by 89 per cent, supported by an improving contribution margin and operating leverage. The contribution margin, calculated as the remaining money from sales after deducting all variable expenses, contributed to this positive trend.
Swiggy’s quick-commerce business, Instamart, witnessed a 63 per cent growth in GMV, aided by an expanding store count. The contribution loss for Instamart fell by 75 per cent in the first half of FY24. Prosus mentioned in its report that a broader product selection, densification of the store network, and faster delivery times played a role in customer acquisition and retention.
In contrast, Swiggy’s main competitor, the listed food delivery firm Zomato, reported a profit of Rs 36 crore (USD 4.3 million) for the quarter ending in September, with operating revenue of Rs 2,848 crore (USD 341.6 million).
