Swiggy’s Instamart business drove a sharp rise in average order values and platform growth, helping offset high spending and boosting overall revenue 54 per cent year-on-year
Swiggy’s consolidated loss for the September quarter narrowed sequentially, aided by robust growth in its quick-commerce business, Instamart, even as higher expenses continued to weigh on profitability.
The Bengaluru-based food and grocery delivery company reported a consolidated net loss of Rs 10.92 billion (USD 124.2 million) for the quarter ended September 30, compared with Rs 11.97 billion in the preceding three months. Year-on-year, however, the loss widened from Rs 6.26 billion.
India’s fast-growing quick commerce sector has become a key battleground for players such as Swiggy’s Instamart, Eternal’s Blinkit, and Zepto, which are expanding aggressively through discounts and subsidised deliveries to capture market share. The competitive intensity has kept margins under pressure across the industry.
Instamart’s gross order value surged 108 per cent year-on-year to Rs 7,022 crore, driven by a 40 per cent increase in average order value. Contribution margin improved by about 200 basis points sequentially to -2.6 per cent, while adjusted Ebitda loss narrowed to Rs 849 crore.
Swiggy’s core food delivery business posted 18.8 per cent growth in gross order value to Rs 8,542 crore, with adjusted EBITDA nearly doubling year-on-year to Rs 240 crore. Average monthly transacting users rose 34 per cent to 22.9 million, supported by higher engagement across services.
“Swiggy’s Food delivery business delivered another quarter of robust growth and improved profitability, with the double-digit YoY order growth at the highest in 2 years … Instamart made giant strides in catering to all purchase missions through Maxxsaver (grocery) and Quick India movement (non-grocery), driving up AOV 40% YoY. A ~200 bps QoQ Contribution margin improvement”, said Sriharsha Majety, Managing Director and Group CEO.
