Online food delivery platform Swiggy's core food-delivery business grew 17% and delivered gross merchandise value (GMV) of $1.43 billion in the first half of FY24, investor Prosus stated in its financial filing. According to the tech investor, this was led by a rise in active users, which drove order growth and inflation in average order value (AOV).
"Core food-delivery EBITDA losses in 1H24 (the first half of the 2024 fiscal) shrunk 89%, led by improvements in contributing margin and operating leverage. Combined, these reflect customers' willingness to pay for convenience, and restaurants' willingness to advertise for growth," Prosus said.
Prosus, which holds a 32.7% stake in the food-tech giant, revealed that the losses reduced to $208 million compared to $321 million in the previous year.
Prosus added that Swiggy’s quick-commerce business made rapid strides as customer adoption drove order growth. Basket sizes grew well ahead of inflation. Instamart’s store count ended the period 19% higher in June, contributing to its GMV growth of 63%.
“With the platform focused on gaining scale and moving towards profitability in the 25 cities where it operates, Instamart’s first-half contribution losses fell by around 75%. Broader product selection, densification of the store network and faster delivery times have continued to aid customer acquisition and retention," Prosus added.
Last month, US-based investment company Invesco marked up Swiggy’s valuation to about $7.85 billion. Earlier in May, Invesco slashed Swiggy's valuation to about $5.5 billion.
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