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New Delhi: Food delivery and quick commerce major Swiggy, which owns Instamart, on Thursday reported a widening of its losses for the third quarter ended December at Rs 1,065 crore, on continuing losses from the quick commerce segment and rising advertising and sales promotion expenses.
The company had reported a loss of Rs 799 crore on a consolidated basis for the corresponding October-December period of the previous financial year.
Swiggy's losses from the quick commerce business Instamart increased to Rs 791 crore in the third quarter, from Rs 528 crore a year ago.
During the quarter under review, Swiggy's revenue from operations shot up to Rs 6,148 crore, from Rs 3,993 crore a year ago, a regulatory filing showed.
However, its total expenses also increased to Rs 7,298 crore, from Rs 4,898 crore in the comparable third quarter period of the last fiscal.
In a letter to shareholders, Swiggy stated that over the past 4 quarters of heightened competition, the company has moved some amount of consumer-facing investments around the Profit & Loss to fulfil key business objectives that lead to longer-term structural improvements.
"However, amidst irrational competition, our recent investments into lower consumer-side monetisation have not yielded the desired incremental order-growth, especially at the bottom of the Average Order Value (AOV)-pyramid; and are being reviewed," it stated.