Swiggy's Q1 FY 25: Revenue Surges to *49.61 Billion, But Losses Deepen Amid IPO Buzz

Swiggy, India’s leading food delivery and quick commerce platform, has released its Q1 FY25 financial results, revealing a mixed bag of soaring revenues and widening losses. As the company gears up for its much-anticipated IPO, the latest numbers offer a glimpse into both its growth trajectory and operational challenges.

Key Highlights from Q1 FY25:

- Consolidated revenue from operations reached ₹49.61 billion
- Net loss widened to ₹11.97 billion
- Operating margin stood at -20.73 percent
- Total expenses rose to ₹38.9 billion
- IPO plans remain on track with a target of ₹37.5 billion

Revenue Performance:

Swiggy’s revenue from operations jumped 35 percent year-on-year, driven by strong growth in both its food delivery and quick commerce verticals.
- Food delivery contributed ₹15.18 billion, up from ₹12 billion in Q1 FY24
- Quick commerce arm Instamart posted ₹3.74 billion in revenue, a 107 percent increase from ₹1.8 billion last year
- Gross order value (GOV) for food delivery rose to ₹68.08 billion, while Instamart’s GOV hit ₹27.24 billion

Losses and Expense Breakdown:

Despite the revenue surge, Swiggy’s net loss expanded by over 8 percent compared to the same quarter last year.
- Net loss for Q1 FY25 stood at ₹11.97 billion, up from ₹10.81 billion in Q4 FY25
- Operating income remained negative at ₹-6.67 billion
- Employee benefit expenses rose 21.3 percent to ₹5.89 billion
- Stock-in-trade purchases increased 33 percent to ₹1.19 billion
- Cost of materials dropped nearly 46 percent to ₹77.6 million

Segment Insights:

Swiggy’s dual-engine strategy—food delivery and quick commerce—continues to show promise, especially in terms of volume and reach.
- Instamart’s rapid growth was fueled by increased demand and expanded product offerings
- Food delivery maintained steady growth, supported by higher order frequency and improved logistics

IPO Developments:

Swiggy has filed an updated draft red herring prospectus (DRHP) with SEBI, aiming to raise over ₹37.5 billion through its IPO.
- The IPO is expected to fund infrastructure expansion, tech upgrades, and marketing initiatives
- Market analysts are closely watching Swiggy’s financials as a benchmark for India’s evolving foodtech landscape

Competitive Landscape:

While Swiggy’s losses deepened, rival Zomato reported a consolidated net profit of ₹2.53 billion in the same period.
- Blinkit, Zomato’s quick commerce division, posted ₹9.42 billion in revenue with a GOV of ₹49.23 billion
- The contrasting performance highlights the competitive pressure and strategic divergence in India’s foodtech sector

Investor Sentiment and Market Reaction:

Swiggy’s Q1 results have sparked mixed reactions in the market.
- Some investors remain optimistic about its long-term growth, especially in quick commerce
- Others are cautious, citing rising operational costs and sustained losses

Conclusion:

Swiggy’s Q1 FY25 results underscore the company’s aggressive growth strategy and the financial strain that comes with scaling operations. As it prepares for its IPO, Swiggy must balance expansion with cost discipline to reassure investors and maintain its market leadership.

Source: Livemint, Inc42, Infomance, July 31, 2025.

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