Swiggy, supported by SoftBank, is considering a domestic IPO of up to $1 billion this year amid its financial performance (Swiggy’s FY23 revenue).
Swiggy, the Indian food delivery giant gearing up for an initial public offering (IPO), disclosed robust financials for the fiscal year 2022-23 (FY23). Despite an impressive 45% surge in revenue, reaching Rs 8,625 crore, the company faced challenges as its net loss widened to Rs 4,179 crore (Swiggy’s FY23 revenue).
This marks a significant contrast from the preceding fiscal year when Swiggy’s revenue stood at Rs 5,705 crore, coupled with a net loss of Rs 3,629 crore.
The financial breakdown for FY23 reveals that Swiggy’s primary expenditure was notably directed towards stock in trade, witnessing a substantial 48% increase to Rs 3,302 crore.
Additionally, employee benefits costs experienced a 25% uptick, reaching Rs 2,130 crore. A noteworthy contributor to Swiggy’s revenue was its restaurant technology platform, Dineout, which generated Rs 77.5 crore. However, the platform reported an operating loss of Rs 176 crore. Swiggy had acquired Dineout in 2022 through a deal valued at approximately $150 million.
Compared to its industry rival Zomato, Swiggy’s FY23 financials present a mixed picture. Zomato reported a remarkable 68.9% surge in gross revenue, amounting to Rs 7,079 crore, accompanied by a 20.5% reduction in losses, which stood at Rs 971 crore (Swiggy’s FY23 revenue).
The competitive landscape in the food delivery sector remains intense, with both companies vying for market dominance and investor confidence.
Amid its IPO preparations, Swiggy is reportedly contemplating a strategic move involving a potential reduction of 350-400 employees, equating to around 6% of its workforce.
These prospective layoffs are expected to impact various departments, including technology and call centers. This strategic decision follows a previous workforce downsizing in January of the preceding year when Swiggy laid off 380 employees.
At that time, the company attributed the move to challenging macroeconomic conditions and a slowdown in its food delivery business.
As Swiggy navigates the dynamics of the food delivery market, the contemplated layoffs signal a proactive approach to streamline operations and enhance efficiency.
The IPO, anticipated to be valued at up to $1 billion, adds complexity to Swiggy’s strategic decisions, as the company strives to present a compelling narrative to potential investors in a competitive and evolving industry landscape.
