Nearly a month after it was reported that IPO-bound?Swiggy had begun laying off up to 250 employees, the online food delivery platform's worrisome financial results have shown concerning signs.?
Swiggy¡¯s losses have more than doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year. Its total expenses have shot up 131% to Rs 9,574.5 crore in FY22, as per IANS report.
While Swiggy¡¯s losses and expenses climbed up, it's revenue grew 2.2 times to Rs 5,705 crore during FY22 as opposed to Rs 2,547 crore in FY21.
According to Entrackr, outsourcing support cost accounted for 24.5% of the total expenses of the company, indicating a jump of 2.3 times to Rs 2,350 crore in FY22 from Rs 1,031 crore in FY21.
Swiggy¡¯s advertising and promotional expenses too surged 4 times to reach Rs 1,848.7 crore during FY22, according to the report.
Last month amid the layoff reports, a Swiggy spokesperson had reportedly said in a statement "There have been no layoffs at Swiggy. We concluded our performance cycle in October and have announced ratings and promotions at all levels. As with every cycle, we expect exits based on performance."?
As per the report, the upcoming layoffs are likely to impact Swiggy's quick commerce delivery service Instamart to reduce cash burn.
In November, global brokerage firm Jefferies had said that Swiggy was fast losing market share to its rival Zomato despite offering heavy discounts.
Also Read:?Zomato Crosses $1 Billion Annualised Revenue For The First Time
Citing Swiggy investor Prosus' financial report, Jefferies said that the gross value of Swiggy's food delivery business was $1.3 billion in the January-June period this year, as per the report.
In the same period, Swiggy¡¯s rival Zomato had logged gross order volume of $1.6 billion.?In May last year, Swiggy had acquired Dineout, a dining out and restaurant tech platform, for an estimated amount of around $200 million.
Earlier that year, the food delivery platform raised $700 million led by Invesco at a $10.7 billion valuation which had turned it into a decacorn.?
After its rival Zomato, Swiggy too is in the process of going for an IPO which may be rolled out this year.?
Swiggy had already started preparations to raise $800 million-$1 billion in an IPO aimed to be rolled out in early 2023. Last year, it had also been reported that Swiggy has begun adding independent directors to the board, and it plans to position itself as a logistics company and not just a food delivery firm. Swiggy had formally launched the IPO process last year by hiring investment banks JP Morgan and ICICI Securities as lead managers.?
Also Read:?From Oyo, Tata Play To?Swiggy?& Ola-List Of 10 Big?IPOs?Expected?In 2023
For the latest and interesting financial news, keep reading Indiatimes Worth.?Click here