Swiggy losses nearly double

FOOD AND GROCERY delivery platform Swiggy on Friday reported a sharp 94.8% year-on-year increase in its net loss to ₹1,081.18 crore for the January-March quarter, significantly exceeding Bloomberg's estimate of ₹778 crore.

- RAGHAV AGGARWAL

The steep rise in losses was driven largely by heavy investments in its quick commerce arm, Instamart, as the company aggressively expanded its dark store network.

This widening of losses came despite a 44.8% increase in revenue from operations, which stood at ₹4,410.01 crore, beating estimates of ₹4,178 crore. However, expenses rose even more sharply, by 52.9% year-on-year to ₹5,609.6 crore, undermining any benefit from the topline performance.

Total income grew 44.1% to ₹4,530.7 crore during the quarter. Ebitda loss came in at ₹962 crore, wider than Bloomberg's estimate of a loss of ₹733 crore.

Meanwhile, Zomato, Swiggy's closest competitor, reported a 78% year-on-year decline in net profit to ₹39 crore for the March quarter, while its revenue surged 64% to ₹5,833 crore.