Swiggy , India's leading on-demand convenience platform, has reported robust growth for the second quarter, with plans to potentially raise substantial funds to fuel further expansion.

Financial Highlights

• Revenue Surge: Swiggy's consolidated revenue from operations jumped 54.4% year-over-year to ₹5,561.00 crore, up from ₹3,601.00 crore in the same quarter last year.
• Loss Widening: The company's net loss increased to ₹1,092.00 crore, compared to ₹626.00 crore in the same quarter last year.
• Gross Order Value (GOV) Growth: B2C GOV saw a significant rise of 47.6% year-over-year, reaching ₹16,683.00 crore.
• Overall Platform Growth: Swiggy's overall platform gross order value grew 48% year-over-year.

Operational Performance

• User Base Expansion: Average Monthly Transacting Users (MTU) grew by 34% year-over-year to 22.9 million.
• Delivery Partner Network: The average monthly transacting delivery partners increased to 691,000, up from 522,000 in the same quarter last year.

Segment-wise Performance

1. Food Delivery

• GOV grew 18.8% year-over-year to ₹8,542.00 crore
• Adjusted EBITDA improved to ₹240.00 crore, with margins expanding to 2.8% of GOV
• Demonstrated strong growth with double-digit order increases, marking the highest growth in two years alongside improved profitability

2. Quick Commerce (Instamart)

• Witnessed a 107.6% year-over-year growth in GOV
• Average Order Value (AOV) increased by approximately 40% year-over-year to ₹697.00
• Recorded significant expansion with 108% yearly growth and 24% quarterly growth

3. Out-of-Home Consumption

• Reported 52% year-over-year growth in GOV, reaching ₹1,118.00 crore
• Achieved positive Adjusted EBITDA margins of 0.5%

Strategic Developments

1. Darkstore Expansion: Instamart added 40 darkstores, reaching a total of 1,102 stores across 128 cities.
2. Divestment Plans: Swiggy has entered into agreements to sell its entire stake in Rapido for ₹2,399.00 crore, subject to regulatory approvals.
3. Fundraising Consideration: The Board of Directors will meet on November 7 to consider raising up to ₹10,000.00 crore through a Qualified Institutional Placement (QIP) or other permitted modes.

Management Commentary

Sriharsha Majety, MD & Group CEO of Swiggy, stated, "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."

Outlook

With its strong performance across segments and strategic initiatives, Swiggy appears well-positioned to capitalize on the growing demand for convenience services in India. The potential fundraise of ₹10,000.00 crore could provide the company with significant resources to support its expansion plans and strengthen its market position.

Investors and market watchers will be keenly observing Swiggy's ability to balance growth with profitability, especially in the competitive quick-commerce segment, as well as the outcome of its fundraising efforts in the coming months.

Note: All financial figures are in Indian Rupees (₹).

Swiggy , India's leading food delivery and quick commerce platform, reported robust growth in its Q2 results, with significant improvements in key business segments despite an increase in net loss.

Financial Highlights

• B2C Gross Order Value (GOV) reached ₹16,683.00 crore, representing a 47.6% YoY growth
• Consolidated adjusted revenue grew to ₹5,911.00 crore, a 52.6% YoY increase
• Net loss expanded to ₹1,092.00 crore, up from ₹626.00 crore in the same quarter last year
• Consolidated adjusted EBITDA loss was ₹695.00 crore, improving from ₹813.00 crore in Q1

Segment Performance

Food Delivery

• GOV of ₹8,542.00 crore, showing 18.8% YoY growth
• Adjusted EBITDA margin improved to 2.8%

Quick Commerce

• GOV of ₹7,022.00 crore, demonstrating a 107.6% YoY growth
• Average order value reached ₹697.00, a 40% YoY increase
• 40 new dark stores added, reaching a total of 1,102 stores across 128 cities
• Profit margins improved from -4.6% in Q1 to -2.6% in Q2

Operational Insights

• Platform monthly transacting users grew 34% YoY to 22.9 million
• The company incorporated a step-down subsidiary, "Swiggy Instamart Private Limited," to house its Instamart business
• Board approved the transfer of the quick commerce business to this subsidiary through a slump sale, subject to shareholder approval

Strategic Moves and Fundraising

• Swiggy announced plans to sell its 12% stake in Rapido for ₹2,400.00 crore
• The Board will consider fundraising up to ₹10,000.00 crore through QIP route
• A Board meeting is scheduled for November 7 to discuss potential fundraising options

Market Response

Swiggy shares closed 0.23% lower at ₹418.00 on the day of the announcement. While the stock remains above its IPO price of ₹390.00, it has seen a 23% decline.

Outlook

Swiggy's Q2 results demonstrate strong growth across its business segments, particularly in quick commerce. The improvement in food delivery margins and quick commerce profitability are positive signs. While net losses have increased, the company's strategic moves, including potential fundraising and business restructuring, indicate a focus on long-term profitability and market leadership. The significant growth in user base and order values suggests continued consumer adoption of Swiggy's services, positioning the company for future growth in the competitive food delivery and quick commerce sectors.