Swiggy’s Q4 FY25 shareholder letter registered a whopping 34.5% year-on-year growth in its platform’s average monthly transacting users (MTU) to 19.8 million. The growth, also an 11.7% quarter-on-quarter increase, represents the effect of strategic marketing and advertising spends. Swiggy’s consolidated adjusted revenue for the quarter was INR 4,718 Cr, along with a widened adjusted EBITDA loss of INR 1,081 Cr.
The higher loss is largely due to higher advertising and marketing spending to drive user acquisition and platform growth in its food delivery and quick commerce (Instamart) segments.
The company highlighted the significance of these investments to deliver sustainable long-term growth and market leadership. The high MTU growth implies the success of these efforts in customer acquisition and retention.
Though the short-term financial performance reflects growing losses, Swiggy’s management is optimistic that the present growth trend, driven by strategic advertising, will eventually result in enhanced profitability and a robust market position. Analysts will be watching closely for Swiggy’s performance in the following periods to gauge the effectiveness of its advertising initiatives and how these affect the financial performance of the company, especially the balance between growth and profitability within the competitive digital commerce environment.
