Swiggy registers a 56% rise in its revenue for April-Sep period

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Swiggy’s revenue from food delivery grew by 56% year on year in the April September period, and up 91% from pre-Covid-19 levels (May 2020), its investor Prosus said in a regulatory filing while announcing the South African internet conglomerate’s results.

“This was driven by higher demand during the second Covid-19 wave in India and expansion of Supr Daily and Instamart in the groceries business,” Prosus said in the filing.

Prosus, the listed arm of Naspers, said in a blog post that the performance of its global food businesses, which include Bengaluru-based Swiggy, remained strong on the back of complementary offerings such as convenience and grocery delivery.

According to the filing, Swiggy’s focus on recovery “by reactivating users, increasing monthly frequency, and returning user conversion to pre-Covid-19 levels,” spurred the growth.

It said Swiggy was doing 1.59 million orders per day, and its gross merchandise value (value of food and non-food orders) in the period was up 69% year on year to $984 million on the back of higher average order values compared to pre-pandemic levels and higher revenues from delivery fees and advertising sales.

“We believe Swiggy is well funded to capitalize on recent momentum and well-positioned to improve its platform’s competitiveness by investing in product and technology and reinforcing its artificial intelligence capabilities,” Prosus said.

Swiggy had 128,000 restaurants on its platform.

In a push to expand users for its non-food delivery offerings, Swiggy said on Monday that it planned to launch a new umbrella membership programme ‘Swiggy One’ in 500 cities in the next two weeks.

The programme offers benefits such as unlimited free deliveries from restaurants and its grocery delivery service Instamart. In the coming months, the membership will extend additional discounts and benefits to Swiggy’s other offerings including Swiggy’s pick up and drop off service Genie and Meat stores.

Prosus-backed PayU, a fintech company that serves online and offline merchants, acquired Bill Desk for $4.7 billion in August. The company said that PayU’s total payment volume (TPV) during the period under review grew by 48% to $35.3 billion and its revenue grew 44% to $359 million, “driven largely by a strong payments performance in our India business and resumed activity in credit.”