The SoftBank-backed food delivery firm’s financial performance comes at a time when Swiggy is eyeing an up to $1 billion domestic initial public offering (IPO) this year
Bengaluru, NFAPost: The initial public offering (IPO)-bound food delivery company Swiggy reportedly saw a 45 per cent jump in revenue, reaching Rs 8,625 crore in FY23. However, its net loss expanded to Rs 4,179 crore.
In the previous financial year, Swiggy’s revenue stood at Rs 5,705 crore, with a net loss of Rs 3,629 crore.
Purchases of stock in trade were the largest expense for Swiggy in FY23, rising by 48 per cent to Rs 3,302 crore. Additionally, the cost of employee benefits climbed by 25 per cent to Rs 2,130 crore.
Swiggy’s restaurant technology platform, Dineout, contributed Rs 77.5 crore to the revenue and incurred an operating loss of Rs 176 crore during the financial year. Swiggy acquired Dineout in 2022 in a transaction reportedly valued at around $150 million.
Competitor Zomato saw its gross revenue jump by 68.9 per cent to Rs 7,079 crore in FY23, compared to Rs 4,192 crore in FY22, according to the company’s consolidated financial statements reviewed by Entrackr. Zomato’s losses declined 20.5 per cent to Rs 971 crore in FY23, down from Rs 1,222 crore in the previous year.
Amid plans for an up to $1 billion domestic IPO this year, Swiggy, backed by SoftBank, is reportedly considering letting go of 350-400 employees, or approximately 6 per cent of its workforce. The Bengaluru-based company employs around 6,000 staff members.
According to a source, these potential layoffs could affect both the technology and call centre departments. In January of the previous year, Swiggy made a decision to lay off 380 employees, citing difficult macroeconomic conditions and a slowdown in its food delivery business.
