Indian food and grocery delivery platform Swiggy reported a second-quarter loss that narrowed sequentially as strong growth in its quick commerce arm, Instamart, partly offset the impact of still-high investments in the business.
The company report consolidated loss of 10.92 billion Indian rupees ($124.24 million) in the three months ended September 30, compared to 11.97 billion rupees in the first quarter.
However, the loss was wider than the year-ago quarter’s 6.26 billion rupees.
India’s quick commerce industry, which promises to deliver everything from milk to mobile phones in minutes, has ignited an investment frenzy as it grows at a blistering pace.
Swiggy’s Instamart, Eternal’s Blinkit and IPO-bound Zepto have emerged as the top players, jostling for market share by providing deep discounts, subsidising deliveries and rapidly expanding their warehouses.
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The race has weighed on profitability for Eternal and has led to ballooning losses for Swiggy, which indicated in May that absolute losses were set to decline gradually.
Analysts had expected the company’s profitability metrics, including Instamart’s EBITDA margins, to improve sequentially.
Instamart’s revenue doubled to 9.8 billion rupees, while that of the food delivery segment rose 22% year-on-year. This propelled overall revenue 54% higher to 55.61 billion rupees.
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