Swiggy records $2.6 billion GMV in FY23, according to Prosus
- ByStartupStory | June 27, 2023
Foodtech giant Swiggy has recorded higher Average Order Value, leading to increased revenue from delivery fees and advertising sales for the fiscal year 2023, according to the financial results published by its largest investor, global consumer internet group Prosus. The food delivery platform achieved a Gross Merchandise Value (GMV) of $2.6 billion during the same period. Prosus, headquartered in Amsterdam, also reduced its effective interest in edtech major BYJU’S to 9.6% from 9.81% in FY 2022 due to the resignation of Russell Dresisenstock from the company’s board. Among its Indian portfolio, Prosus holds a 32.83% effective interest in Swiggy, its largest investment in any Indian startup.
According to the annual financial report, Prosus’ share in Swiggy’s overall revenue grew by 40% year-on-year to $297 million in FY 2023, up from $212 million in FY 2022. However, Prosus’ share in Swiggy’s losses increased to $180 million for FY 2023, primarily driven by its investment in Instamart. Extrapolating these figures, Swiggy’s overall annual revenue stood at approximately $900 million for FY 2023, with total losses amounting to $545.5 million for the year. The restaurant food delivery business of Swiggy, based in Bengaluru, experienced a 26% year-on-year growth in GMV for FY 2023, reaching $2.6 billion. Swiggy currently boasts 272,000 restaurant partners on its platform, while its quick-commerce business Instamart witnessed a remarkable GMV growth of 459% year-on-year.
In terms of profitability, Swiggy has been focusing on its journey toward becoming a profitable company, as reflected in its financial performance over the past two reporting periods. The company has been concentrating on reactivating users, increasing monthly frequency, and improving user conversion. As per media reports, Swiggy is targeting profitability by the last quarter of 2023 in preparation for its anticipated public market debut in the coming year. Swiggy CEO Sriharsha Majety mentioned in a company blog earlier this year that the food delivery business had already turned profitable for the financial year ending on March 31, 2023.
Apart from restaurant food delivery, Swiggy has expanded its operations into various segments, including quick-commerce, concierge services (Genie), and other convenience offerings. It has recently acquired Dineout, a leading dining and restaurant tech solutions platform in India, expanding its portfolio of consumer convenience offerings. Swiggy has also launched an innovative subscription program called Swiggy One, a multicategory loyalty program covering its restaurant food delivery, quick-commerce, Dineout, and concierge services. The company is well-funded and poised to capitalize on its current momentum.
Prosus, during the year, increased its investment in PharmEasy, raising its effective interest in the company to 13.43% from 13.24% in the previous fiscal year. PayU, the payment services provider (PSP) of Prosus, continued to regard India as its largest market, with a 51% contribution to revenue from its India business. The Total Payment Value (TPV) from India grew by 33% to $58 billion, corresponding to a transaction growth of 25% to 1.4 billion during the reporting period. PayU’s India business generated revenue of $399 million, a 31% increase from the previous year. This growth was driven by enterprise and SMB customers, as well as diversification into new customer segments such as government merchants, omnichannel businesses, and other products. Prosus also announced the removal of cross-holding with Naspers, the South African consumer internet group, allowing open-ended buyback to continue.
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