Swiggy: The enormous food delivery company Swiggy, headquartered in Bengaluru, disclosed a substantial financial setback in its FY 2023–2024 annual report. Moneycontrol reports that the company revealed that over a prolonged period of time, a former junior employee stole an astounding Rs 33 crore (about $4 million).
Swiggy’s Investigation and Legal Action
According to the report, an outside team was hired by Swiggy, which is preparing for an IPO, to look into the fraud. The business has filed a formal complaint against the former employee in the wake of the probe. Swiggy’s statement underlines, “The group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to Rs 326.76 million over the past periods.”
Financial Performance and IPO Plans
Despite this setback, Swiggy is moving forward with its IPO plans. On April 26, the company submitted its IPO draft documents confidentially. The food aggregator aims to raise up to Rs 3,750 crore (around $450 million) through new issuances and an additional Rs 6,664 crore (about $800 million) via an offer-for-sale (OFS) as part of its $1.25 billion IPO set for later this year.
Revenue and Expenditure Insights
Swiggy’s annual report also reveals a 36% increase in revenue, reaching Rs 11,247 crore for FY24. The company managed to reduce its losses by 44%, bringing them down to Rs 2,350 crore from Rs 4,179 crore in the previous fiscal year. This improvement is attributed to a reduction in expenses, including a notable cut in promotional and marketing costs, which fell from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24.
Swiggy’s Market Position Compared to Zomato
In the market, Zomato is a stronger competitor of Swiggy, even with these financial strides. With a 43% market share, Swiggy trails Zomato, which had a 57% stake in the food delivery industry in FY24. Gross order value (GOV) for both enterprises combined was about Rs 56,924 crore.
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