Swiggy's Q2 loss widens to Rs 1,092 cr as Instamart remains in red

New Delhi: Swiggy, which owns Instamart, on Thursday reported widening of consolidated net loss to Rs 1,092 crore for the second quarter ended September 2025, on continuing losses from the quick commerce segment and increase in the company's advertising and sales spend.

The food delivery and quick commerce firm had reported a net loss of Rs 626 crore for the year-ago period.

However, revenue from operations increased to Rs 5,561 crore from Rs 3,601 crore a year ago, a regulatory filing to the exchanges showed.

Expenses also shot up to Rs 6,711 crore from Rs 4,309 crore a year ago.

The board will meet on November 7 to consider and approve raising of up to Rs 10,000 crore through a qualified institutional placement (QIP) in one or more tranches, it said in a regulatory filing on Thursday.

Overall, the quick commerce business (Instamart) posted a Rs 849 crore loss for the second quarter, while Swiggy's overall advertising and sales promotion expenses shot up to Rs 1,039 crore, as against Rs 537 crore a year ago.

"Instamart accelerated its GOV (gross order value) growth to 108 per cent YoY (24.2 per cent QoQ), clocking Rs 7,022 crore. 40 dark-stores were added selectively to take the overall network to 1,102 dark-stores, covering 4.6 million square feet across 128 cities. Average order value increased by 39.7 per cent YoY to reach Rs 697, led by continued traction across Maxxsaver, our basket-building proposition and expansion of non-grocery selection," Swiggy stated.

In a letter to shareholders, Swiggy said food delivery continued its growth trajectory in line with its guidance, with a steady 18.8 per cent YoY GOV growth even amidst volatile macro-consumption trends and higher-than-usual rainfall.

"Food delivery has always been a very hotly-contested category, with both existing players and new competition striving to create an opening in what is a thin-margin, high-visibility, and operations intensive business. During the quarter, we saw heightened competitive action in the segment, both in terms of lowered subscription fee and reduced minimum order value," Swiggy stated.

"In response, we tweaked our own proposition for Swiggy One on a targeted basis, to ensure no short-term loss of users or orders. As a result of this, the extent of subsidised deliveries through Swiggy One went up even further, the impact of which was balanced by the hike in platform fee. These are tactical moves, and we are operationally robust, more than ever, to take these in our stride," it added.

The company also informed shareholders that it believes quick-commerce is poised to continue growing at a very fast clip, and Instamart is well placed to capture the incremental category growth with both new users and new purchase-missions continuing to get attached to the platform.

During the quarter, the company incorporated a step-down subsidiary, Swiggy lnstamart Private Limited, under Scootsy Logistics Private Limited to house the Instamart business.

Its Board of Directors approved the transfer of the quick commerce business to this subsidiary through a slump sale, subject to shareholders' approval.

Besides, during the quarter, the company entered into share purchase agreements to divest its entire investment in Roppen Transportation Services Private Limited (Rapido) for Rs 2,399 crore, as approved by the board.

The company also shared its cash position and reasons behind the fundraise proposal.

In the letter to shareholders, Swiggy said, "With the current cash balance to be further bolstered by the Rs 2,400 crore Rapido divestment, we feel comfortable about our overall balance sheet strength, and are well-funded for our growth ambitions.

"However, the external competitive environment is dynamic, and legacy and new players continue to attract investments to the sector. This has necessitated a conversation with the board to consider an additional fund raise which will give us access to sufficient growth capital while enhancing our strategic flexibility. Hence, the Swiggy Board will be meeting on the 7 November 2025, to consider a fundraise of up to Rs 10,000 crore through the QIP route".