Swiggy Instamart's operating losses peaked in Q4, says Sriharsha Majety

Food and grocery delivery platform Swiggy’s group CEO Sriharsha Majety said Friday that the operating losses for its quick commerce vertical Instamart peaked by the end of the January-March quarter, and the company expects to “progressively unwind losses” from hereon.

“We believe that Instamart reached the peak of adjusted Ebitda losses in late-Q4; and from hereon, we expect to progressively unwind losses, the pace of which will be determined by our expansion of AOV (average order value) and take-rates, and the nature and quantum of competitive intensity,” Majety said in a letter to the shareholders. Take rate refers to the ratio of gross sales to revenue.

For the January-March period, Swiggy reported a consolidated net loss of Rs 1,081 crore, up from Rs 555 crore a year ago. The company’s operating revenue increased 45% year-on-year to Rs 4,410 crore during the quarter.

Also Read: Swiggy Q4 Results: Net loss nearly doubles to Rs 1,081 crore despite 45% YoY revenue jump

Notwithstanding Majety’s comment on Instamart’s losses, the company has underscored the role of competitive intensity in the quick commerce space on the pace of improvement for its bottomline.

“We therefore expect to reach contribution breakeven in three to four quarters from now,” the company said. In the July-September quarter, the company had set a target of Instamart to reach contribution breakeven by October-December 2025 quarter.

During Q4 of FY25, Swiggy Instamart accelerated the pace of its dark store expansion, adding 316 and now has 1,021 active dark stores on its network, meeting the goal of 1,000+ dark stores by March 2025.

This compares to 294 dark stores added by its Gurgaon-based rival Blinkit, which had 1,301 such micro-warehouses as of March 31.

Also Read: “Will grow Blinkit’s market share aggressively”: Eternal CFO Akshant Goyal