SUMMARY
Swiggy clocked a revenue of $1.02 Bn (around INR 8,505 Cr as per current exchange rates) during the first nine months of FY24
Reduced marketing spends and employee costs are expected to help the company slash its loss for the full year ending March 2024
Last month, Inc42 reported that the Invesco-backed company was well on track to report close to INR 10,000 Cr in revenue for FY24
IPO-bound foodtech major Swiggy’s loss reportedly stood at $207 Mn (INR 1,730 Cr) during the first nine months of the financial year 2023-24 (FY24).
In contrast, the decacorn reported a net loss of INR 4,179.3 Cr in FY23, as per MCA filings.
A source told Reuters that reduced marketing spends and employee costs are expected to help the company slash its net loss for the full year ending March 2024.
As per the report, the Bengaluru-based startup also clocked a revenue of $1.02 Bn (around INR 8,505 Cr as per current exchange rates) during April-December 2023. The startup’s operating revenue stood at INR 8,264.4 Cr in the entirety of FY23.
This is more or less in line with Inc42’s recent report that said that the Invesco-backed company was well on track to report close to INR 10,000 Cr in revenue for FY24 on the back of surge in Instamart orders, levy of platform fees and growing traction for its dining out business.
Sources then told Inc42 that Swiggy’s revenue stood at INR 4,735 Cr in H1 FY24 from just the food delivery and quick commerce vertical Instamart.
The latest report follows a year of massive restructuring exercise at Swiggy, which included mass layoffs, reduction in spending, and streamlining of operations to reduce cash burn. Be it the partnership with IRCTC to deliver pre-ordered meals to train passengers or merging its premium grocery vertical InsanelyGood with Instamart, the startup has taken a number of steps to boost revenue and curb its losses.
The development also comes at a time when the company is preparing for its mega $1 Bn public listing later this year.
Meanwhile, Swiggy has worked to increase its daily orders while introducing platform fees (which is currently between INR 3 to INR 4 per order) to create alternate revenue streams and spruce up the top line.
The push for profitability comes at a time when a growing number of new-age tech companies have turned profitable amid the ongoing funding winter and adverse macroeconomic conditions.
On top of that, profitability is a crucial piece of puzzle for Swiggy to solve as it looks to debut on the bourses, joining the likes of Ola Electric, MobiKwik, Digit, FirstCry, and ixigo who are also vying for their IPOs in 2024.
In the middle of all this, the foodtech major is also witnessing some silver lining. Its investor, US-based asset management firm Baron Capital Group, marked up the valuation of the startup on its books to $12.16 Bn at the end of December 2023.
Swiggy was last pegged at $10.7 Bn during the last fundraise in 2022.
It is pertinent to note that its listed competitor Zomato has emerged as a favourite of investors. Unlike Swiggy, the Delhi NCR-based startup posted profits in all three quarters of the ongoing fiscal year.
Zomato’s net profit stood at INR 176 Cr in the first nine months of FY24. As a result, its shares have surged over 200% in the past 12 months.
