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Prosus, which holds a 32.7% stake in Swiggy, said the startup’s core food delivery business grew 17%, delivering a gross merchandise value (GMV) of $1.43 billion in the first six months of the year. 

This was led by a rise in transacting users that drove double-digit order growth and inflation in average order value, the Netherland-based investment major said, in its H1 FY24 results presentation on Wednesday. 

“Core food delivery EBITDA losses in 1H24 shrunk 89% led by improvement in contribution margin and operating leverage. This reflects customer willingness to pay for convenience and restaurant willingness to advertise for growth,” the company said.  

This comes after Invesco, which led Swiggy’s previous round and cut its valuation to less than $5.5 billion, marked up the startup’s valuation to $7.85 billion in July. However, this still remains below the peak value of $10.7 billion that Swiggy had achieved during its $700-million funding round in January last year.

Further, the Indian unicorn’s quick-commerce business made rapid strides as customer adoption drove order growth. Basket sizes grew well ahead of inflation. Instamart’s first-half contribution losses fell by around 75%. 

“Broader product selection, densification of the store network, and faster delivery times have continued to aid customer acquisition and retention,” Prosus said.  

Overall, Swiggy grew its overall GMV by 28% in H1 FY24 while reducing its trading losses to $208 million.