Food and grocery delivery platform Swiggy is banking on innovative use cases and affordability to drive the growth of its food delivery and fast commerce businesses.

Managing Director and CEO SHarsha Mehta said the company was actively working to unlock new consumption opportunities for its customers, with initiatives such as 10-minute food delivery being one of the many strategies in play.

Swiggy expects its food delivery business to grow 18-22% this year, supported by these innovations and a focus on affordability.

Read also | Everything you need to know about Swiggy’s second quarter show

The company also improved its earnings before interest, taxes, depreciation and amortization (EBITDA) margins on a quarterly basis to 1.6% and is targeting a stable margin of 5% in the coming quarters.

CFO Rahul Bothra said increasing scale, reducing subscription costs and advertising revenue would help reach this milestone.

The fast commerce segment, which Swiggy pioneered, continues to show strong momentum. The company added 86 dark stores in the first half of the fiscal year and plans to expand another 400 in the second half.

Other notable fast commerce platforms in India include Blinkit (formerly Grofers), Dunzo Daily, Zepto, BigBasket, Flipkart Minutes, M-Now (Myntra), Slikk and FreshToHome.

Bothra noted that 75% of dark stores in mature cities are already profitable, with smaller cities showing encouraging adoption of Swiggy’s offerings.

Read also | Swiggy CEO’s Reaction to Company’s IPO Debut

As competition heats up, both in food delivery and fast commerce, Swiggy remains confident in its ability to stay ahead. Majety acknowledged the challenge posed by Amazon’s entry but stressed. “It will be a question of which companies will best understand consumer needs and respond effectively. »

With ₹8,800 crore in cash reserves, Swiggy believes it is well positioned to support its growth trajectory, maintain operational resilience and deliver value to its customers.

Newly listed Swiggy reported a net loss of ₹625.5 crore for the July-September quarter 2024 (Q2FY25). Swiggy shares debuted at an 8% premium to the issue price of ₹420 per share on November 13.

Also watch | Analyst on rapid commerce challenges for Swiggy

The company’s market capitalization now stands at ₹1,15,503.88 crore with its shares gaining nearly 4% in the last five days.

For more details, watch the accompanying video

Check out all the latest stock market updates here