Swiggy Teams Up with PharmEasy to Launch Medicine Delivery via Instamart

Swiggy, the food and grocery delivery platform gearing up for its Initial Public Offering (IPO), has announced a partnership with PharmEasy to enhance its offerings and provide medicine deliveries within just 10 minutes. This collaboration aims to broaden Swiggy's product range and attract a new customer base by venturing deeper into the e-pharmacy sector.

Regulatory Compliance Simplified

Thanks to this partnership with the established e-pharmacy, Swiggy can bypass the need for additional regulatory approvals that typically accompany the entry into pharmaceutical deliveries. This strategic move allows Swiggy to leverage PharmEasy’s existing framework, ensuring a smoother transition into this new vertical without the lengthy process of obtaining separate licenses.

Existing Delivery Framework

It’s worth noting that Swiggy has previously offered basic over-the-counter (OTC) medications through its quick commerce service, Instamart. Items like pain relief sprays and common fever medications have already been part of their delivery options. The new alliance with PharmEasy enables Swiggy to expand its e-pharmacy capabilities and enhance the range of medicines available for delivery, catering to more specific consumer needs.

Pilot Program in Bengaluru

To kick off this initiative, Swiggy will begin a pilot program in Bengaluru, focusing on delivering essential medications. Customers can expect to receive pain relievers, fever medicines, and even prescription-based drugs. The prescription process has been streamlined for convenience; customers can either upload their prescriptions directly through the app or obtain a valid prescription from a doctor during a consultation facilitated by PharmEasy.

The Rise of Quick Commerce

This foray into the pharmaceutical space aligns with a broader trend of quick commerce companies seeking new sectors to explore. By diversifying their offerings, these companies aim to increase their average order values (AOVs) and improve overall profitability. As competition intensifies, companies like Swiggy are keen to capture a larger share of the market and offer comprehensive services to their customers.

Financial Performance Overview

Swiggy's latest financial report highlights some challenges. In the first quarter of the fiscal year 2025 (Q1FY25), the company reported a widening loss of ₹611 crore, up from ₹564 crore during the same period last year. These losses can be attributed to rising operational costs, which reached ₹3,908 crore—an increase of 27% compared to the ₹3,073 crore spent in Q1FY24.

Despite these losses, Swiggy's revenue from operations exhibited significant growth. The company recorded revenue of ₹3,222.2 crore for the April-June period, marking a 35% increase from ₹2,389.8 crore during the corresponding timeframe of the previous year. This increase in revenue signals a strong demand for Swiggy's services, even as it navigates financial challenges.

Comparison with Competitors

In contrast, Swiggy's rival, Zomato, reported a revenue of ₹4,206 crore in Q1FY25, reflecting a remarkable 74% year-on-year growth. Additionally, Zomato achieved a profit of ₹253 crore, showcasing its ability to scale operations effectively in the competitive food delivery landscape.

When looking at the full fiscal year 2024, Swiggy's revenue grew by 36%, reaching ₹11,247 crore, up from ₹8,265 crore in FY23. The company's losses also saw a significant reduction of 44%, decreasing to ₹2,350 crore from ₹4,179 crore, primarily due to improved control over expenses. This financial strategy appears to be a crucial factor in Swiggy's ongoing efforts to stabilize its operations and foster growth.

Looking Ahead

As Swiggy embarks on this new partnership with PharmEasy, it will be interesting to see how the market responds to its expanded offerings. The quick medicine delivery service could attract a different segment of users, potentially increasing user engagement and loyalty. Furthermore, this move may pave the way for Swiggy to explore additional health-related services in the future, solidifying its position in the rapidly evolving quick commerce landscape.