Swiggy sees 109% rise in losses despite growing customer base in April-Sept 2025: Prosus
The Indian food delivery market has been witnessing significant growth in recent years, with players like Swiggy and Zomato dominating the space. However, despite the growing demand, Swiggy has reported a substantial increase in losses in the April-September 2025 period. According to Prosus, a key investor in Swiggy, the food delivery startup has recorded a 109% year-on-year (YoY) rise in its losses, rising from $85 million to $178 million.
This significant increase in losses comes as a surprise, given that Swiggy’s customer base has grown by 35% YoY during the same period. The gross order value (GOV) of the company has also risen by 43% YoY, indicating a strong demand for its services. However, it appears that the company’s efforts to expand its customer base and increase its GOV have come at a significant cost.
One of the primary reasons for the surge in losses is Swiggy’s heavy investment in its quick commerce business, Instamart. The company has been aggressively expanding its Instamart service, which offers quick delivery of groceries and other essentials. While this has led to a 105% YoY rise in the GOV of Instamart, it has also resulted in significant losses for the company.
The Indian quick commerce market has been witnessing intense competition, with multiple players vying for market share. To stay ahead of the competition, Swiggy has been investing heavily in its Instamart business, which has led to increased costs and losses. However, the company believes that its investment in Instamart will pay off in the long run, as the demand for quick commerce services continues to grow.
Despite the significant increase in losses, Prosus remains optimistic about Swiggy’s prospects. The company believes that Swiggy’s strong customer base and growing GOV will help it to achieve profitability in the future. Prosus, which owns 25% of Swiggy, has been a key investor in the company and has been supporting its growth plans.
The Indian food delivery market is expected to continue growing in the coming years, driven by increasing demand for online food ordering and delivery. According to a report by RedSeer Consulting, the Indian food delivery market is expected to grow to $12 billion by 2025, up from $4 billion in 2020. This growth is expected to be driven by increasing internet penetration, growing demand for convenience, and the expansion of food delivery services to tier 2 and tier 3 cities.
In this context, Swiggy’s efforts to expand its customer base and increase its GOV are likely to pay off in the long run. The company’s investment in its Instamart business is also expected to yield positive results, as the demand for quick commerce services continues to grow. However, the company will need to balance its growth plans with the need to reduce its losses and achieve profitability.
In conclusion, Swiggy’s significant increase in losses in the April-September 2025 period is a cause for concern, but it is not necessarily a sign of weakness. The company’s growing customer base and increasing GOV are positive indicators of its strength and potential for growth. With the support of key investors like Prosus, Swiggy is well-placed to achieve its growth plans and become a leader in the Indian food delivery market.
As the Indian food delivery market continues to evolve, it will be interesting to see how Swiggy and other players navigate the challenges and opportunities that lie ahead. With the demand for online food ordering and delivery expected to continue growing, the future looks bright for Swiggy and the Indian food delivery market as a whole.
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