Global tech investor Prosus just revealed Swiggy’s sharpest turnaround yet. The food and grocery delivery company cut its adjusted EBITDA loss by 30% in calendar year 2024—dropping from $261 million to $182 million. All this while pouring serious money into Instamart, its quick commerce bet.
The update comes straight from Prosus, a key backer of Swiggy since 2017. The investor called this the beginning of Swiggy’s operating leverage kicking in—thanks to growth in both food and grocery orders.
Food Steady, Grocery Explosive
Swiggy’s overall Gross Order Value (GOV) grew 29% in 2024. Food delivery kept growing at a healthy pace, but grocery was the real firestarter. The quick commerce segment—driven by Instamart—doubled its GOV year-on-year.
In the first quarter of FY25, Swiggy’s GOV surged another 40% YoY. Food delivery alone grew 18%, while quick commerce GOV shot up a massive 101%.
Instamart Is Bleeding—But There’s a Plan
Here’s the catch: Instamart is still bleeding. Its contribution margin was -18%, the worst yet. That’s because Swiggy added 316 new dark stores in just one quarter. Prosus said this quarter marked the “peak of investment” in Instamart. The goal now? Hit contribution breakeven in 3–5 quarters.
Interestingly, Swiggy’s food delivery business already turned contribution positive in Q1FY25, posting a margin of 2.9% over GMV. That’s a big deal—it shows the core business is now self-sustaining.
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Prosus Cashes Out, Still Sees Big Upside
Swiggy’s IPO in November 2024 was a major payday for Prosus. It raised Rs 11,400 crore, and Prosus sold shares worth $500 million, pocketing $2.8 billion from its 31% stake. Not bad for a $1.3 billion investment.
After the IPO, Prosus now holds 24.8% of Swiggy. And it’s not done betting on India. In fact, CEO Fabricio Bloisi recently said the firm has invested $8.6 billion in India, calling it a land of “incredible opportunity.”
A Big India Bet That’s Working
From Meesho and BlueStone to PayU and PharmEasy, Prosus is everywhere in Indian tech. Several of these startups are preparing IPOs soon, meaning more big exits for the Dutch investor.
Swiggy’s story isn’t over. Instamart is still deep in the red, but food delivery is now profitable. And if quick commerce turns the corner in the next year or two, Prosus may be staring at another multi-billion-dollar win.
