Swiggy Expands Business Verticals Beyond Food Delivery
Indian food delivery company Swiggy has diversified into several new business areas, with food delivery remaining its profitable core. The company reported significant losses in its quick commerce segment.
Swiggy, which entered India's online food delivery market in 2014, has expanded its operations significantly beyond its core food delivery service to include groceries, dining, and supply chain management.
The company's food delivery business generated ₹2,208 crore in operating revenue in the June quarter of FY27 (Q1 FY27), with an operating profit margin of 3.1% of Gross Order Value (GOV). The contribution margin for food delivery stood at 7.6% of GOV. However, Swiggy recorded an overall loss of ₹791 crore in the same quarter.
The quick commerce business, Instamart, was the largest drag, reporting an adjusted EBITDA loss of ₹778 crore, despite generating ₹7,907 crore in GOV. Swiggy is using profits from its food delivery segment to fund these newer ventures.
Swiggy is investing in quick commerce and "platform innovations," testing new formats and operating models. The company's existing consumer base, technology stack, and fulfillment network facilitate the testing of new initiatives without building all capabilities from scratch. Its supply chain and distribution (SC&D) business, an inventory-led B2B model, reported ₹3,195 crore in revenue, making it the largest contributor to the company's operational revenue for the quarter.