Swiggy's food delivery finally profitable, but quick commerce still bleeding
Swiggy just hit a big milestone—its food delivery business is finally profitable in Q3FY24, thanks to more orders, faster deliveries, and better margins.
But its quick commerce arm (think Instamart) is still losing money and holding back the company's overall earnings.
Even so, Swiggy's feeling positive about what's next.
Food delivery is on a growth path
Swiggy's food delivery orders grew significantly, hitting a notable value. Profits (adjusted EBITDA) improved, and margins increased.
Fast services like Bolt (10-minute deliveries) and deals like 'Crazy Deals' are helping out—and Swiggy expects margins will top 5% by FY28.
Quick commerce is still losing money
Instamart and other quick commerce offerings are growing fast but still losing money due to high costs and some inefficiencies.
Swiggy plans to make Instamart a standalone brand to compete better, though profits here might take until after FY28.
Looking ahead
Even with losses in quick commerce, Swiggy expects its total revenue to grow over 30% each year through FY28—mostly because we're all ordering more food online.
If you're curious about how your favorite apps make money (or lose it), this shows how tough—and interesting—the business really is right now.