Foodtech decacorn Swiggy has appointed FMCG veteran Anand Kripalu as an independent director and the chairperson of its board of directors to strengthen its board ahead of its initial public offering (IPO).
Kripalu, who currently serves as the managing director and global CEO of the world’s largest speciality packaging company EPL, is an IIT Madras and IIM Calcutta alumnus. He also completed an advanced management program at Wharton Business School.
“Swiggy has transformed food and grocery delivery in the country, bringing unparalleled convenience to millions of homes. I am honoured to join its accomplished board, and look forward to lending my experience and perspective as Swiggy shapes the future of convenience”, Kripalu said on his appointment.
Before leading EPL, he was the MD and CEO of alcoholic beverage major Diageo India. He also held leadership positions at Mondelez International and Unilever in the past.
Commenting on the appointment, Sriharsha Majety, cofounder and group CEO of Swiggy, said, “I’m pleased to have Anand Kripalu join as an independent director and chairperson of the Swiggy board. Anand is a veteran in the consumer goods industry, and his deep knowledge and perspective will be instrumental in guiding Swiggy as we continue to innovate and redefine the on-demand delivery landscape in India.”
The appointment comes as the foodtech giant prepares for a public listing next year. The listing, likely to happen in mid-2024, is already being touted as the biggest IPO by an internet company next year, with an issue size of $1 Bn (INR 8,300 Cr).
Earlier this year, the company also appointed three new independent directors on its board – Delhivery MD and CEO Sahil Barua, TAFE MD and chairman Mallika Srinivasan, and Shailesh Haribhakti & Associates chairman Shailesh Haribhakti.
Swiggy competes with Zomato in India’s food delivery market, which is largely a duopoly. However, both have also been facing competition from the government-backed Open Network for Digital Commerce (ONDC).
While Zomato reported two back-to-back profitable quarters in FY24, Swiggy claimed to have achieved profitability in its food delivery business as of March 2023. However, there have been no further updates from the company on this front.
Swiggy is yet to file its FY23 financial statements. However, its investor Prosus, in its annual report, noted that the food delivery firm’s loss widened by 80% in 2022 and that its share of loss increased to $180 Mn in 2022 from $100 Mn in 2021 mainly due to investments in quick commerce business, Instamart.
In FY22, Swiggy’s net loss jumped 2.2X to INR 3,628.9 Cr from INR 1,616.9 Cr in FY21 as its expenses more than doubled. The SoftBank-backed decacorn’s revenue from operations rose 124% to INR 5,704.9 Cr from INR 2,546.9 Cr in the previous year.
Kripalu’s appointment also comes after several top-level exits at the foodtech giant. Most recently, senior vice president Karthik Gurumurthy left the startup to work on his venture in the foodtech space. He is also said to have talked with multiple venture capital (VC) firms, including Matrix and Accel, to fund his new startup.
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