Swiggy Reports 24% Revenue Growth in 2023; Quick Commerce Gains Boosted, Says Prosus

In a significant update, Prosus, the largest shareholder in Swiggy, announced robust financial performance for the food and grocery delivery giant for the calendar year 2023. According to Prosus' annual report released Monday, Swiggy witnessed a commendable 24% growth in revenue, marking a successful year as it celebrated its tenth year in operation.

Key highlights from the report include Swiggy's Gross Order Value (GOV) surging by 26% year-on-year, underscoring sustained momentum in its core food delivery segment. The company's user base also saw substantial growth, reaching 104 million by the end of December 2023.

Prosus attributed Swiggy's strong performance to strategic initiatives such as the introduction of nominal platform fees and the expansion into revenue streams like restaurant advertising. These moves bolstered operational profitability and enhanced Swiggy's market position amidst fierce competition in the food delivery sector.

Moreover, Swiggy's foray into quick-commerce, a burgeoning segment combining grocery and essential items delivery, proved highly successful. Prosus reported that the quick-commerce business witnessed accelerated growth, outpacing the broader ecommerce industry. This growth was driven by expanded geographical reach, with 487 active dark stores across 26 cities, and a diverse product offering exceeding 9,500 unique items.

Looking ahead, Swiggy is gearing up for a landmark milestone as it filed confidentially with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) aimed at raising $1.25 billion. Prosus, currently holding a 32.6% stake in Swiggy, is expected to play a pivotal role as a promoter in this anticipated public offering.

Prosus expressed confidence in Swiggy's future prospects, noting continued improvements in unit economics driven by larger basket sizes, an expanding user base, and operational efficiencies. The investor highlighted Swiggy's adaptability and innovation in meeting evolving consumer demands as key factors driving its success.

As Swiggy prepares to navigate the public markets, industry analysts are closely watching how the company will leverage its market leadership and operational strengths to capitalize on the growing demand for food delivery and quick-commerce services in India.

The announcement from Prosus underscores Swiggy's resilience and growth trajectory amidst a dynamic market landscape, positioning it as a formidable player in India's rapidly evolving digital economy.