Food tech major Swiggy has seen grwoth in its total sales and order volume in the first six months of current year, according to a report by Prosus, one of company's biggest investor.
Swiggy's food delivery business orders reported a growth of 38 per cent, while in terms of its total sale or gross merchandise value (GMV), it saw a growth of 40 percent in the first six months of the year, said Prosus.
The company's total quick commerce and gross merchandise value grew 20 times and 15 times, respectively, according to the report.
The restaurant food delivery GMV stood at $1.3 billion, while quick commerce GMV was $257 million, said the report.
Prosus said that its share of Swiggy’s revenue grew faster at 72 percent to $150 million.
"Swiggy’s core restaurant food delivery business grew GMV by 40%, while its quick commerce GMV increased 15x during the first six months of the year. Our share of Swiggy’s revenue grew 118% to US$150m," the report said.
While, its losses also increased to $105 million, driven by investment in both food delivery business and Instamart.
“Our share of Swiggy’s trading loss increased to $105 million, driven by investment in both the core restaurant food delivery business to increase growth and in Instamart to expand its footprint," said Prosus.
"The segment delivered strong growth, with a focus on improving profitability in the core restaurant businesses, coupled with controlled investment in growth extensions, such as quick commerce and groceries. On an economic interest basis, GMV grew 26%, increasing revenues by 52% to US$1.9bn. Investment into adjacencies increased trading losses by US$69m, to US$381m," the report added.
Prosus invested twice in Swiggy, when it invested $274 million in April 2021 and $25 million in February 2022.
In its earnings report for the year ended March 31, 2022, Prosus said Swiggy's business has recovered fully from the effects of the Covid pandemic, as it has focused on reactivating users, increasing monthly frequency and returning user conversion to levels they were at prior to the pandemic.
