Swiggy's net losses double in fourth quarter

CEO Majety expects Instamart to reduce its losses going forward

- Priyamvada C.

Food delivery major Swiggy said on Friday its quick commerce business Instamart is expected to reduce its losses going forward after the company's consolidated fourth quarter net losses nearly doubled to ₹1,081.1 crore. Meanwhile, fourth quarter revenues increased to ₹4,530.7 crore from ₹3,143.2 crore the year-ago period.

"We believe that Instamart reached the peak of adjusted EBITDA (earnings before interest, tax, depreciation and amortization) losses in late-Q4 and from here on, we expect to progressively unwind losses, the pace of which will be determined by our expansion of AOV and take-rates, and the nature and quantum of competitive intensity," Swiggy's co-founder and group chief executive officer (CEO) Sriharsha Majety said in the shareholder letter. AOV refers to average order value.