IPO-bound foodtech giant Swiggy is reported to have recorded a loss of $207 million (INR 1,730 crore) in the first nine months of the financial year 2023-24 (FY24).
In contrast, according to MCA filings, the decacorn posted a net loss of INR 4,179.3 crore in FY23.
According to a source cited by Reuters, the company is anticipated to decrease its net loss for the fiscal year ending March 2024 through reduced marketing expenditures and employee costs.
As per the report, the Bengaluru-based startup generated a revenue of $1.02 billion (approximately INR 8,505 crore at current exchange rates) from April to December 2023. The startup’s operating revenue for the entire FY23 was INR 8,264.4 crore.
This aligns with a recent report indicating that the Invesco-backed company is on track to report nearly INR 10,000 crore in revenue for FY24, driven by a surge in Instamart orders, platform fees, and increasing popularity of its dining-out business.
Continue Exploring: Swiggy prepares for IPO with name change to Swiggy Private Limited
Sources indicated that Swiggy’s revenue from the food delivery and quick commerce vertical, Instamart, reached INR 4,735 crore in H1 FY24.
The latest report comes after a year of extensive restructuring efforts at Swiggy, marked by significant layoffs, spending cuts, and operational streamlining aimed at reducing cash burn. From partnering with IRCTC to deliver pre-ordered meals to train passengers to merging its premium grocery vertical, InsanelyGood, with Instamart, the startup has implemented various measures to bolster revenue and mitigate losses.
Continue Exploring: IPO-bound Swiggy merges InsanelyGood with Instamart
This development coincides with the company’s preparations for its upcoming mega $1 billion public listing later this year.
In the meantime, Swiggy has focused on boosting its daily orders and implementing platform fees (currently ranging between INR 3 to INR 4 per order) to diversify revenue streams and enhance overall revenue performance.
The push for profitability comes at a time when an increasing number of modern tech companies have become profitable despite the current funding downturn and challenging macroeconomic conditions.
Additionally, profitability is a vital factor for Swiggy as it aims to make its stock market debut, joining other companies like Ola Electric, MobiKwik, Digit, FirstCry, and ixigo, all of which are also planning their IPOs in 2024.
Despite this, the foodtech behemoth is seeing some encouraging trends. Its backer, US-based asset management firm Baron Capital Group, raised the startup’s valuation to $12.16 billion by the end of December 2023.
Continue Exploring: Baron Capital elevates Swiggy’s valuation to $12.1 Billion, marking 13% increase from previous fundraise
Swiggy was valued at $10.7 billion during its last fundraising round in 2022.
It’s worth noting that Swiggy’s listed competitor, Zomato, has become a favorite among investors. Unlike Swiggy, the Delhi NCR-based startup has reported profits in all three quarters of the current fiscal year.
Zomato’s net profit reached INR 176 crore in the first nine months of FY24, driving its shares to surge by over 200% in the past 12 months.