When it comes to the online food delivery saga, there is no doubt that Swiggy has emerged as a prominent player in the online food delivery realm. But ever thought – Is Swiggy Profitable? 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.
Let’s take a closer look at Swiggy’s business journey and uncover its YOY results!
Swiggy Company Overview
Before getting into the discussion of YOY business results, let’s know some of its company insights.
|Name of the company||Swiggy|
|Founders||Sriharsha Majety, Nandan Reddy, & Rahul Jaimini|
|Parent company||Bundl Technologies Private Limited|
|Headquarter||Bengaluru, Karnataka, India|
|Industry serves||Online food ordering|
|Revenue (2023)||$900 million|
|Valuation (2023)||$7.85 billion|
|Services provided||Food delivery|
Swiggy Instamart for on-demand groceries delivery
Swiggy Ginie for same-day package delivery
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: Swiggy has launched its new membership plan at Rs.99 only, that comprises of various benefits. To know more about this new launch by Swiggy, do visit our article, “Swiggy One Lite at just Rs.99”, to gain more insights into it.
(A)Revenue Generation of Swiggy
Let’s take a look at the revenue earned by Swiggy over the years as it is one of the major factors of – is Swiggy profitable
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.
Let’s have a look at Swiggy’s Expenses over the year!
(C)Expenses of Swiggy
Another major factor of – Is Swiggy Profitable, that constitutes to its overall revenue generation and profitability.
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
Here comes the final step of discussion – is Swiggy profitable. 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.