Swiggy bets big on marketing in new DRHP; allocates Rs 1,115 crore

The planned expenditure breakdown includes Rs 61.5 crore for FY25, Rs 332 crore for FY26, Rs 359 crore for FY27, and Rs 362 crore for FY28

by e4m Staff
Published: Oct 30, 2024 5:05 PM | 2 min read

Online food delivery giant Swiggy has ramped up its marketing budget significantly, as revealed in its updated Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) on October 29. The company has increased its advertising expenses by approximately 20%, raising the allocation from Rs 929.5 crore to Rs 1,115.3 crore.

In the revised DRHP, Swiggy emphasized the necessity for ongoing investments in marketing to support its operational expansion and compete effectively. "Our marketing initiatives may require continued investments... to keep pace with industry trends and user preferences," the document states.

The planned expenditure breakdown includes Rs 61.5 crore for FY25, Rs 332 crore for FY26, Rs 359 crore for FY27, and Rs 362 crore for FY28. Swiggy aims to enhance brand recall and attract a diverse range of partners through targeted marketing campaigns, asserting its commitment to cost-effective strategies.

In FY24, Swiggy's brand marketing expenses totalled Rs 558.9 crore, constituting 8.17% of total other expenses. This marks a shift from previous years, where it spent Rs 595.4 crore in FY23 and Rs 528.34 crore in FY22. Notably, in Q1 FY25 alone, advertising costs surged to Rs 147.252 crore, representing 7.43% of total other expenses.

The company's strategic investment in brand marketing is pivotal not just for immediate growth but also for long-term sustainability in a competitive landscape. As Swiggy continues to innovate and adapt its marketing strategies, it positions itself as a formidable player in the rapidly evolving food delivery sector.