Swiggy has seen growth in its total sales and order volume in the first six months of 2022, according to Prosus, one of the foodtech giant’s biggest investor. The company’s food delivery business orders reported a growth of 38 percent, while in terms of its total sale or gross merchandise value (GMV), it saw a growth of 40 percent in the first six months of the year, the investor said in a report.

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The report added that Swiggy’s total quick commerce and gross merchandise value grew 20 times and 15 times, respectively. It further noted that the restaurant food delivery GMV stood at $1.3 billion, while quick commerce GMV was $257 million.

"Swiggy’s core restaurant food delivery business grew GMV by 40 percent, while its quick commerce GMV increased 15x during the first six months of the year. Our share of Swiggy’s revenue grew 118 percent to $150m," Prosus said in its earnings report which ended on September 30, 2022.

Meanwhile, Prosus' share of losses also increased to $105 million, on the account of investment in both food delivery business and Instamart. "Our share of Swiggy’s trading loss increased to $105 million, driven by investment in both the core restaurant food delivery business to increase growth and in Instamart to expand its footprint," said the firm said in the report.

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The report added that Swiggy remains well funded to drive its business objectives.

"The segment delivered strong growth, with a focus on improving profitability in the core restaurant businesses, coupled with controlled investment in growth extensions, such as quick commerce and groceries. On an economic interest basis, GMV grew 26 percent, increasing revenues by 52 percent to $1.9bn. Investment into adjacencies increased trading losses by $69m, to $381m," said Prosus.

In its earnings report for the year ended March 31, 2022, Prosus said Swiggy's business has recovered fully from the effects of the Covid pandemic. The company has invested twice in Swiggy - $274 million in April 2021 and $25 million in February 2022.

Lost significant influence in BYJU’S: Prosus

In the same report, Prosus said it has recorded the fair value of its 9.67 percent stake in Byju's at $578 million at the end of the September quarter.

"In September 2022, the group lost significant influence in BYJU’S as it no longer exerts significant influence over the financial and operating policies of the entity. The group recognised a gain on disposal of the associate of US$22m, including a reclassification of the accumulated foreign currency translation losses of US$55m. The group accounts for its 9.67 percent effective interest in BYJU’S at fair value through other comprehensive income. The fair value of the BYJU’S investment, subsequent to the loss of significant influence, is US$578m," the technology investor said in its earnings report.

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Prosus has classified the edtech giant as a non-controlling financial investment rather than an associate as its shareholding fell below 10 percent.

"Macroeconomic conditions have changed in the several months preceding our half-yearly financials, generally resulting in significant declines in company valuations across the technology sector. The fair value of the group’s BYJU’s investment was determined by a third-party firm," Prosus told Moneycontrol.

"Prosus changed the accounting treatment for Byju's and in subsequent reporting periods, the company will be accounted for as an investment. The provision of Byju’s audited financials did not align with timing of the close of our financial reporting periods, so we did not have sufficient information to make fair assumptions for our Group’s financial statements," it added.

In October, BYJU'S had raises $250 million in a fresh funding round, with participation from existing investors including Qatar Investment Authority (QIA). Last valued at $22 billion, what also remains unknown is the valuation given to BYJU'S in this round.

The fresh capital infusion comes soon after the company announced plans to lay off 2,500 employees across teams, while enlisting a slew of 'optimisation measures' to hit profitability by March, 2023. For FY21, BYJU'S loss widened by nearly 20 times to Rs 4,559 crore — the worst bottomline figure among all of India's unicorns or startups valued at $1 billion or more.

Also Read: Despite recent troubles, Swiggy CEO confident of growth

(Edited by : Anushka Sharma)