Swiggy, the prominent food delivery and quick-commerce platform, reported a significant increase in its losses for the fourth quarter of the financial year 2024-25 (Q4FY25), driven primarily by aggressive investments in its quick-commerce service, Instamart. The company’s consolidated net loss surged to ₹1,081.18 crore, a stark rise from ₹554.77 crore in the same quarter the previous year, according to financial statements released on May 9, 2025.
Despite the growing losses, Swiggy saw its revenue from operations climb by an impressive 44.8% year-on-year, reaching ₹4,410 crore, up from ₹3,045.55 crore in Q4FY24. This growth reflects the company’s robust performance across its various business segments, particularly in food delivery and grocery services.
During the quarter, Swiggy's gross order value (GOV) also saw a substantial increase, rising 40% year-on-year to reach ₹12,888 crore. The food delivery sector alone contributed a GOV of ₹7,347 crore, which marked a growth of 17.6% year-on-year. The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin for this segment improved significantly to 2.9% of GOV, compared to just 0.5% a year prior.
“FY25 was a year of many firsts for Swiggy,” said Sriharsha Majety, MD & Group CEO. “We launched multiple new apps, across Instamart, Snacc, and recently, Pyng, all of which are aimed at opening up new user-segments and markets.” This strategic expansion is part of Swiggy’s efforts to enhance customer engagement and retention.
Instamart, the company’s quick-commerce arm, reported exceptional growth, with GOV increasing by 101% year-on-year to ₹4,670 crore. The service has aggressively expanded its footprint, adding 316 new dark stores—its highest quarterly addition ever—bringing the total number of dark stores to 498 across 124 cities. This expansion is crucial as it allows Swiggy to meet the rising demand for rapid grocery delivery.
In terms of user engagement, the platform’s average monthly transacting users (MTUs) surged by 35% year-on-year, reaching 19.8 million. Notably, 35% of these users utilized more than one service on the platform, highlighting the effectiveness of Swiggy's multi-service offerings in driving customer loyalty.
However, the company’s aggressive growth strategy has come at a cost. The adjusted EBITDA loss widened to ₹840 crore, and the contribution margin declined from -4.6% in the previous quarter to -5.6% in Q4FY25. The significant investments in customer acquisition and infrastructure, particularly in the highly competitive quick-commerce sector, have contributed to this financial strain.
Swiggy’s out-of-home consumption segment, however, turned profitable for the first time, achieving a GOV growth of 42% year-on-year and an adjusted EBITDA margin of 0.3% of GOV. This segment's success is a positive sign for the company as it diversifies its revenue streams.
As of March 31, 2025, Swiggy reported cash and cash equivalents of ₹6,695 crore, providing a buffer for its ongoing expansion efforts. The company is keenly aware of the challenges posed by its losses, particularly in the quick-commerce segment. “Quick-commerce is in a phase of rapid expansion and heightened competitive intensity, for which we have ramped up investments aimed at market expansion (Megapods), reach (over 1,000 stores across 124 cities), and differentiation (Maxxsaver),” Majety explained.
Investments in innovative services, such as the 10-minute food delivery service Bolt, which currently powers 12% of food delivery orders, are part of Swiggy’s strategy to enhance operational efficiency and customer satisfaction. Over 45,000 restaurant brands across more than 500 cities are now partnered with Bolt, which offers a diverse range of dishes spanning 26 cuisines.
Despite the challenges, Swiggy remains optimistic about its future. The company’s leadership is focusing on maintaining growth while managing operational costs effectively. “Overall, we remain focused on growth, on the back of delivering unparalleled convenience to consumers,” Majety stated.
As Swiggy navigates the complexities of the food delivery and quick-commerce markets, it is evident that the company is at a pivotal point. The balancing act between rapid growth and financial sustainability will be crucial as it looks to solidify its position in an increasingly competitive landscape.
On the stock market, Swiggy shares closed 0.2% lower at ₹314.4 on the NSE following the announcement of its financial results. Investors will be watching closely to see how the company manages its growth trajectory and addresses its mounting losses in the coming quarters.
