Is Swiggy Profitable? Uncovering YOY Business Results

Swiggy has been operating in the online food delivery industry since 2014, and over the years has expanded in 500+ cities.

An app that has been serving as the gateway or the portal to a pool of food menus from uncountable restaurants, on-demand groceries delivery from their Swiggy Instamart feature, and same-day package delivery from Swiggy Ginnie. 

Swiggy Company Overview

Swiggy: Uncovering YOY Business Results  

• The founders initially started Bundl, a platform that provides courier service and shipping in India. But shut it down and started a new venture named Swiggy in 2014. 
• With time Swiggy established itself in more than 500+ cities and in 2017, Swiggy launched a cloud kitchen service called The Bowl Company, and along with it launched a kitchen incubator unit called Swiggy Access.
• The Swiggy Access feature boosted the cloud kitchen line of Swiggy, and in 2 years Swiggy opened more than 1000 of Swiggy Access Kitchen.

• In 2019, Swiggy marked its another milestone, by launching Swiggy Go and Swiggy Stores. 
• Swiggy Go allowed customers to send and receive parcels, later on Swiggy Go was changed to Swiggy Ginnie. 
• Swiggy stores supplied available products from local stores to the customers.

Note: Also visit the article- “Swiggy One Lite at just Rs.99”.

(A)Revenue Generation of Swiggy 

For the current year 2023, Swiggy accounted its overall revenue for 2023 is $900 million (Rs.7,400 crore) that comprises $297 million revenue for FY23, a 40% increase observed from the previous year,  however half of it comprises its losses for FY23.

(B)Losses of Swiggy

Apart from having a good revenue for the current year 2023 i.e. Rs.7,400 crore, Swiggy experienced a wide net loss of Rs.5,450 crore as compared to previous year loss of Rs.3628 crore. Swiggy losses increased by 80% in 2023. 

(C)Expenses of Swiggy 

Swiggy has observed a 40% increase in its revenue generation in 2023, however the expense for the same year are not disclosed. These expenses consist of various aspects such as operation costs, delivery rates, promotional campaigns, technology development, marketing expenses, etc.

(D)Is Swiggy Profitable? 

No, as of now Swiggy is not profitable. For the current year 2023, Swiggy experienced a loss of Rs.5,450 crore, which is an 80% increase in its losses as compared to last year’s loss of Rs.3,628 crore.

However, recently Swiggy increased its platform fee from Rs.2 to Rs.3 on food orders to chase profitability. This’ll help Swiggy to earn more revenues and profitability while ordering from their platform. Also its latest offering, “Swiggy One Lite” membership at Rs.99 was launched, where at Rs.99 customers can enjoy a range of benefits like discounts at partner restaurants, free deliveries, etc.

Summing Up The Profitability Discussion 

Being one of the prominent and major players of the online food tech industry, Swiggy generated a good amount of revenue this year which was 40% increase from previous year, however its losses were bigger than its revenue generation.

Swiggy losses accounted for about Rs.5,450 crore which is an 80% increase this year 2023, as compared to last year losses which was Rs.3,628 crore. Apart from this, Swiggy remains to be one of the most and top apps used for online food delivery. 

This YOY business results serves as the guiding compass through the company’s financials till date, that comprises all flavors of success and losses, leaving a lasting impression and name in the online food delivery industry.