Bengaluru: Swiggy, one of India’s top food and grocery delivery platforms, has reported a widening of its net loss to ₹799 crore in the third quarter, despite a 31% jump in operating revenue to ₹3,993 crore. The financial strain is attributed to increased investments in market expansion, competitive pricing strategies, and rising operational costs.
Revenue Growth vs. Rising Losses
The Bengaluru-based company witnessed significant growth in its food delivery and QuickCommerce businesses. Swiggy’s food delivery division saw a 19.2% increase in order volumes, while its Instamart service, which offers rapid grocery deliveries, continued to gain traction among urban consumers.
Despite these positive trends, the company’s aggressive expansion strategies, high delivery costs, and promotional offers have led to persistent losses. The latest financial figures highlight the challenges Swiggy faces in achieving profitability while maintaining its market share.
Market Competition and Strategic Moves
Swiggy’s financial struggles come at a time when competition in the Indian food delivery sector is intensifying. Rival Zomato has also been focusing on cost efficiency and revenue diversification, putting pressure on Swiggy to balance growth with financial stability.
The company has been making strategic moves to counter this, including investment in artificial intelligence-driven logistics, strengthening partnerships with restaurants, and expanding its premium subscription model, Swiggy One.
“We are seeing strong demand across our platforms, but our focus remains on achieving sustainable growth while continuing to invest in the business,” said a Swiggy spokesperson.
Future Outlook
With India’s online food delivery market projected to grow significantly in the coming years, Swiggy remains optimistic about its long-term prospects. However, experts warn that the firm must focus on cost efficiency and margin improvements to avoid further financial setbacks.
As Swiggy prepares for a potential IPO in the future, all eyes will be on its ability to turn around its losses while maintaining its competitive edge.