Foodtech giant Swiggy has released its financial results for FY 2023, revealing a surge in Average Order Value (AOV) and increased revenue from delivery fees and advertising sales. The data, published by Prosus, Swiggy’s largest investor and a global consumer internet group, indicates a significant milestone for the food delivery platform.
According to the financial report, Swiggy achieved a Gross Merchandise Value (GMV) of $2.6 billion for FY 2023. Prosus, headquartered in Amsterdam, holds a notable 32.83% effective interest in Swiggy, making it the largest investment in any Indian startup within Prosus’ India portfolio.
Prosus’ share in Swiggy’s overall revenue witnessed a remarkable 40% year-on-year growth, reaching $297 million for FY 2023 compared to $212 million in FY 2022. However, the company’s share in Swiggy’s losses expanded to $180 million for FY 2023, primarily driven by its investment in Instamart.
On a broader scale, Swiggy’s overall annual revenue amounted to approximately $900 million for FY 2023, with total losses reaching $545.5 million for the year. Swiggy’s core business of restaurant food delivery exhibited a substantial 26% year-on-year growth in GMV, totaling $2.6 billion. The platform currently boasts 272,000 restaurant partners.
Swiggy’s quick-commerce business, Instamart, experienced exponential growth, with a staggering 459% year-on-year increase in GMV. The term “GMV” refers to the sales recorded by an ecommerce platform within a specific time frame.
The Prosus report highlights Swiggy’s strategic focus on profitability, evident in its recent financial performance. The company concentrated on reactivating users, increasing monthly frequency, and improving user conversion, contributing to its positive trajectory.
Reports suggest that Swiggy aims to achieve profitability by the last quarter of 2023 in preparation for its anticipated public market debut in the following year. Earlier this year, Swiggy CEO Sriharsha Majety stated in a company blog that the food delivery business had already become profitable for the financial year ending March 31, 2023.
In addition to its restaurant food delivery segment, Swiggy has expanded into other areas such as quick-commerce, concierge services (Genie), and dining-out experiences. The company acquired Dineout, a leading dining and restaurant tech solutions platform in India, broadening its portfolio of consumer convenience offerings. Swiggy also introduced Swiggy One, an innovative multicategory loyalty program encompassing its various services.
Prosus further increased its investment in PharmEasy during the year, raising its effective interest in the company to 13.43%. PayU, Prosus’ payment services provider (PSP), reported India as its largest market, with a 51% contribution to revenue from the country. PayU’s Total Payment Value (TPV) in India grew by 33% to $58 billion, accompanied by a 25% transaction growth to 1.4 billion during the reporting period. Revenue generated from PayU’s India business amounted to $399 million, a 31% increase from the previous year.
Prosus also announced the removal of cross-holdings with Naspers, the South African consumer internet group, allowing the open-ended buyback program to continue.
With its impressive financial performance and a diversified range of offerings, Swiggy remains well-positioned to capitalize on its momentum and continue its growth trajectory in the foodtech industry.
