Swiggy Reports Widened Q3 Losses

Swiggy, the food delivery and quick commerce major, reported a significant widening of its losses for the third quarter ended December, reaching Rs 1,065 crore, up from Rs 799 crore in the previous year. This increase is primarily attributed to continued losses in its quick commerce segment, Swiggy===Instamart, which posted a Rs 908 crore loss, and rising advertising and sales expenditure. Despite a substantial increase in revenue from operations to Rs 6,148 crore, total expenses also climbed to Rs 7,298 crore. Swiggy's co-Founder and Group CEO, Sriharsha Majety, highlighted 'irrational competition' and stated that recent investments into lower consumer-side monetisation have not yielded the desired incremental order-growth, especially at the bottom of the average order value (AOV)-pyramid, leading to a strategic review. The company has chosen not to participate in deep-discount-driven growth strategies that sacrifice AOVs and margins. While the food delivery business saw accelerated Gross Order Value (GOV) growth, Swiggy===Instamart's GOV growth was impacted by competitive actions. The news led to a nearly 8% drop in Swiggy's stock.