Swiggy Narrows EBITDA Losses to $182 M in 2024

Swiggy significantly cut its adjusted EBITDA loss to $182 million in calendar year 2024—marking a 30% reduction from $261 million in 2023, according to investor Prosus. This improvement highlights Swiggy’s operational leverage even as it ramped up investment in its quick-commerce arm, Instamart

📊 FY2024 Highlights

• EBITDA Loss: $182 million in 2024, down 30% from $261 million in 2023 .
• Gross Order Value (GOV): Rose 29% YoY; Q1 FY25 GOV surged ~40%, driven by food delivery (+18%) and Instamart (+101%)
• Food Delivery Margins: Achieved positive adjusted EBITDA margin of 2.9% over GMV in Q1 FY25
• Instamart Losses: Margins weakened to –18% due to rapid expansion via 316 new dark stores in Q1

🧭 What This Means

1. Operating Leverage Kicks In
   Swiggy’s scale, especially via food delivery, helped absorb fixed costs, reducing overall losses
2. Investments Still Heavy in Quick-Commerce
   The 101% growth in Instamart GOV shows aggressive spending, but the company expects breakeven for this vertical within 3–5 quarters
3. IPO Backdrop
   Swiggy went public in November 2024 at ₹390/share. Key backer Prosus (24.8% stake) saw returns from the IPO and is now seeing trends turn favorable
4. Competitive Landscape
   Facing pressure from rivals like Zomato’s Blinkit and Zepto, Swiggy’s rapid store additions highlight its intent to dominate quick commerce
5. Analyst and Market Response
   Investors note the balance between growth and profitability: Morgan Stanley rates Swiggy as ‘overweight’, citing strong footing in food delivery despite prioritizing rapid Instamart scaling

🚦Outlook & Risks

• Profit Path: Continued food delivery profitability may help offset short-term Instamart losses.
• Breakeven Timing: Instamart is expected to turn profitable in 3–5 quarters with sustained GOV momentum.
• Market Sensitivity: Any slowdown in order volumes or margin pressure could reverse gains. Ongoing competition adds pressure.

Suggested External Links

• Financial Express: Swiggy cuts adjusted EBITDA loss by 30% to $182M fortuneindia
• Moneycontrol: Quick commerce grows GOV 101%, but margins remain weak
• Economic Times (ETTech): “Growth came at cost of profitability,” says Prosus
• New Indian Express: GOV up 40%, gov growth signaling momentum