Why Did Swiggy Experience a Massive Loss of Rs 1,081 Crore in Q4 FY25?

Synopsis
Swiggy's recent financial report reveals shocking losses of Rs 1,081 crore in Q4 FY25, a 95% jump from the previous year. Despite this, the company is launching new apps and focusing on growth strategies. What does this mean for the future of the online food delivery giant?
Key Takeaways
- Swiggy reported a loss of Rs 1,081 crore in Q4 FY25.
- Losses increased by 95% compared to Q4 FY24.
- Revenue rose to Rs 5,609 crore in Q4 FY25.
- Investments in Quick commerce drove higher EBITDA loss.
- Average monthly transacting users grew by 35% to 19.8 million.
New Delhi, May 9 (NationPress) The online food delivery service Swiggy has reported a staggering loss of Rs 1,081 crore in the fourth quarter of the last financial year (FY25), marking a dramatic increase of 95 percent compared to the Rs 554 crore loss recorded in the same quarter of FY24, as revealed in its financial disclosures on Friday.
On an annual basis, the company's losses deepened by 35 percent in FY25, escalating from Rs 2,350 crore in FY24 to Rs 3,116 crore in FY25, according to the regulatory filing submitted to stock exchanges.
The consolidated adjusted EBITDA loss surged to Rs 732 crore year-on-year, attributed to substantial investments aimed at accelerating growth in Quick commerce, the company noted.
Revenue, however, increased to Rs 5,609 crore in the March quarter, a rise from Rs 3,668 crore in Q4 of FY24.
“FY25 marked a year of numerous innovations for Swiggy. We introduced several new applications, including Instamart, Snacc, and recently, Pyng; all designed to capture new user segments and markets. Our food delivery service achieved its best performance in terms of innovation and execution, leading to category-leading growth and increased profitability,” stated Sriharsha Majety, MD and Group CEO of Swiggy.
“Our out-of-home consumption business became profitable in Q4, within just two years of its integration. Overall, we remain committed to growth by delivering unmatched convenience to our consumers,” added Majety.
The Gross Order Value (GOV) for Swiggy’s food delivery segment continues to align with guidance, growing healthily by 17.6 percent to Rs 7,347 crore year-on-year.
Swiggy Instamart saw its GOV growth accelerate to 101 percent, reaching Rs 4,670 crore in Q4, with the average order value increasing by 13.3 percent to Rs 527.
Instamart added 316 new darkstores, its highest quarterly addition to date, expanding its active darkstore area to 4 million square feet, consistent with its growth targets.
Swiggy reported a 35 percent year-on-year increase in its average monthly transacting users (MTU), totaling 19.8 million, with 35 percent of users engaging with multiple services on the platform.