Founded in 2014, Swiggy Limited, India’s pioneering on-demand convenience platform, is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app.
The company is undergoing a significant strategic shift from its own food business to streamline its operations and refocus on its main platform business. This shift involves exiting the private label food business and discontinuing its hyperlocal delivery service, Swiggy Genie.
Discontinuation of Swiggy Genie
Swiggy has shut down its hyperlocal delivery service, Swiggy Genie, in order to refocus on its core businesses—food delivery and quick commerce. Launched in April 2020, Genie allowed users to send packages and pick up items within the city, competing with services like Uber Package and Porter. Despite being available in over 60 cities, Genie failed to become a significant revenue driver for Swiggy. The company cited “operational constraints” as the reason for suspending the service.
Exiting the Private Label Food Business
On 6th May, Kouzina Food Tech, a Bengaluru-based cloud kitchen company, entered into a strategic agreement with Swiggy for the exclusive license of its digital-first food brands: The Bowl Company (TBC), Homely, Soul Rasa, and Istah. Under this agreement, Kouzina will manage end-to-end operations, innovation, and growth for these brands.
Upon fulfilment of certain pre-agreed conditions, Swiggy will transfer full ownership of these brands to Kouzina. The move marks Swiggy’s formal exit from its private label business.
Strategic Refocus on Core Services
These strategic decisions indicate Swiggy’s intent to concentrate on its primary offerings—food delivery and quick commerce. By offloading non-core operations, Swiggy aims to enhance its competitiveness in the rapidly growing quick commerce space, where it faces stiff competition from players like Blinkit and Zepto. This realignment is expected to allow Swiggy to allocate more resources and attention to its main platform business, ensuring sustained growth and customer satisfaction.
Financial Performance
The company announced its Q4 FY25 and FY25 financial results on Friday after market hours, reporting a rise in revenues but a widening of net losses. For Q4 FY25, Swiggy reported consolidated operating revenue of Rs. 4,410 crores, registering a growth of around 10 percent QoQ from Rs. 3,993 crores in Q3 FY25. Similarly, on a year-on-year basis, revenue from operations increased by about 45 percent from Rs. 3,045.5 crores in Q4 FY24.
Net loss widened by around 35 percent QoQ, rising from Rs. 799 crores in Q3 FY25 to Rs. 1,081 crores in Q4 FY25. On a year-on-year basis, the net loss surged nearly 95 percent from Rs. 555 crores in Q4 FY24.
Swiggy reported a total consolidated segment revenue of Rs. 4,411 crore for Q4 FY25. Supply chain and distribution segment emerged as the largest contributor, accounting for Rs. 2,004 crore or 45.4 percent of the total segmental revenue.
Food Delivery contributed Rs. 1,629.3 crore, accounting for 37 percent of the total segmental revenue. Quick-commerce followed with Rs. 689 crore, representing 15.6 percent. Revenue from Out of out-of-home consumption segment stood at Rs. 67 crore (1.5 percent), while Platform Innovations has contributed a revenue of Rs. 21.4 crores (0.5 percent)of the overall consolidated segment revenue.
With a market cap of Rs. 71,909.5 crores, the shares of Swiggy Limited closed in the red at Rs. 314 on Friday, down by around 0.2 percent on BSE, as against its previous closing price of Rs. 314.6.
Written by Shivani Singh
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