Swiggy supercharges ad spend, scaling up 13.2% to Rs 605.3 crore in Q2 FY25
Swiggy has narrowed its losses to Rs 490.8 crore in the September quarter of fiscal year 2025 compared to Rs 590 crore in the corresponding quarter of last fiscal year
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Food delivery platform Swiggy has scaled up its advertising and promotion expenses by 13.2 percent to Rs 605.3 crore in the second quarter of fiscal year 2025 compared to Rs 534.6 crore.
The consolidated ad spend of Swiggy, including its e-commerce platform Instamart and Scootsy Logistics, has increased to Rs 537 crore up 9 percent year-on-year.
The Bengaluru-based firm has narrowed its losses to Rs 490.8 crore in the September quarter of fiscal year 2025 compared to Rs 590 crore in the corresponding quarter of last fiscal year.
Whereas, the sales have jumped to Rs 2,146 crore compared to Rs 1,547 crore in Q2 FY 24
Swiggy invested in Scootsy Logistics Private Limited, its wholly owned subsidiary up to Rs 1,600 crore as a part of the deployment of IPO proceeds towards Instamart and its expansion and up to Rs 250 crore ) towards working capital infusion.
Last month Swiggy made a debut in the Indian stock market by listing with a premium of nearly 8% against the issue price of Rs 390. The Rs 11,327-crore initial public offer of Swiggy was fully subscribed during the three-day window period.
Swiggy increased its brand marketing and business promotion expenses in its updated IPO-related documents in October. Swiggy increased the ad and promotional expenses to Rs 1115.3 crore from Rs 929.5 crore in the previous documents.
Swiggy spent Rs 558.9 crore in brand marketing and business promotional expenses in fiscal year 2024 which was 8.17 percent of total other expenses. Before this, the company spent Rs 595.4 crore (FY 23) in brand marketing and Rs 528.34 crore in FY 22. In the first quarter of FY 25, Swiggy's ad spending soared to Rs 147.252 crore-- 7.43 percent of the total other expenses.
In January 2024, Swiggy entered into an agreement with a marketing agency (Brand Promotion Arrangement). The company proposed to spend up to Rs 1,114.5 crore, over four calendar years on brand marketing services across various channels, including traditional media (including TV, print, and radio media), OTT media, and digital media.
