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Swiggy Records 45% Revenue Surge but Net Loss Widens Ahead of IPO

Swiggy gears up for IPO with a 45% revenue surge but faces a widened net loss. Instamart to drive future growth.

In its annual filings, Swiggy, the hyperlocal commerce unicorn gearing up for an Initial Public Offering (IPO), revealed a substantial 45% increase in revenue to Rs 8,625 crore during the fiscal year 2023. However, the company also reported a widened net loss of Rs 4,179 crore. In the preceding financial year, Swiggy had posted revenue of Rs 5,705 crore, accompanied by a net loss of Rs 3,629 crore.

In contrast, its arch-rival Zomato experienced a 66% rise in revenue to Rs 7,761 crore for the fiscal year 2023, coupled with a reduced net loss of Rs 971 crore.

Major expenditures for Swiggy in FY23 included a 48% surge in purchases of stock in trade, amounting to Rs 3,302 crore, and a 25% growth in employee benefits costs, reaching Rs 2,130 crore.

In its FY23 report, Swiggy disclosed that its restaurant booking platform, Dineout, contributed Rs 77.5 crore in revenue but incurred an operating loss of Rs 176 crore during the financial year. Swiggy had acquired Dineout in a slump sale in July 2022 for Rs 645 crore.

As part of its preparations for the upcoming IPO, Swiggy is actively implementing cost-cutting measures. The company recently initiated a second round of layoffs, affecting approximately 7% of its workforce, or around 400 employees. In January 2023, Swiggy had laid off 380 employees and closed its meat marketplace to streamline operations and reduce costs.

The IPO-bound company is eyeing a public market listing later in the year and has reportedly engaged investment bankers for the process.

Swiggy’s founder and CEO, Sriharsha Mejety, disclosed during an interview in Davos that the food delivery business has experienced a more rapid slowdown than anticipated. Despite this, he emphasized that Instamart, Swiggy’s quick-commerce business, is poised to be the primary growth driver in the coming years as the company adapts to changing market dynamics.

Swiggy’s financial performance and strategic moves ahead of its IPO will be closely monitored as the company navigates the dynamic landscape of the hyperlocal commerce and food delivery sector.

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