Swiggy's Surging Income Amid Quick Commerce Challenges

Swiggy, the prominent food delivery platform, has announced a significant rise in total income to Rs 5,048 crore for the quarter ending in June, despite facing broader financial challenges. The company's consolidated losses widened to Rs 1,197 crore, primarily attributed to an Rs 896-crore setback from its quick commerce arm, Instamart.

In its regulatory filing, Swiggy highlighted substantial year-on-year growth in both food delivery services and Instamart operations. Food delivery reported a remarkable year-on-year growth rate of 18.8%. Quick commerce saw an acceleration in gross order value growth at 107.6% over the previous year.

Swiggy has strategically augmented its quick commerce infrastructure, expanding the number of darkstores to 1,062 and increasing their average size. Despite fiscal hurdles, the company remains optimistic about sustaining high-teens growth rates in the near future, with further potential improvement as customer engagement in newer use-cases strengthens.

(With inputs from agencies.)