Swiggy trades growth for profitability as expansion, competition heat up: Prosus

Foodtech major Swiggy’s growth last year in the food delivery and quick commerce segment came at the expense of profitability due to the expansion of its dark store network and amid heightened competition, noted the Dutch consumer internet company Prosus.

The firm, which holds a 24.8% stake in Swiggy, noted that the firm added 316 new dark stores during the three months ended March 31, 2025.

During this period, the company reported a 40% year-on-year rise in gross order value (GOV)—the total value of all orders placed on a platform before deductions—led by a food delivery GOV increase of 18% YoY, and quick commerce GOV growth of 101% YoY.

Additionally, the firm said that Swiggy is aiming for a contribution breakeven in the quick commerce segment in the next three to five quarters.

Also Read

Prosus sees IPO-bound Urban Company’s fair value at around $2.4B

Swiggy saw its quarterly losses double in Q4 FY25 as heavy spending on quick commerce tugged at the company’s bottom line. The Sriharsha Majety-led Swiggy saw its losses widen to Rs 1,081 crore from Rs 553.6 crore in the January-March quarter of the previous year.

Swiggy’s quick commerce arm Instamart competes with Zomato-owned Blinkit and Zepto.

Quick commerce companies often burn through cash due to high expenses stemming from their capital and labour-intensive model while ensuring quick deliveries. These companies have to shell out money to set up and maintain dark stores, churn out money to pay delivery partners, and often turn to competitive pricing on their platforms amidst intense competition in the segment.

Prosus had first invested in Swiggy back in 2017 and was a selling shareholder in the company’s IPO, which happened in November last year. Post-IPO, the firm held a 24.8% stake in Swiggy.