Swiggy Reports $200 Million Loss Ahead of Potential IPO: Reuters

Swiggy Reports $200 Million Loss Ahead of Potential IPO: Reuters

29 March 2024 – Swiggy, a leading food delivery platform, has disclosed a loss of $200 million for the nine-month period ending December 2023, according to an internal document obtained by Reuters. The revelation comes amidst preparations for a potential initial public offering (IPO), with backing from SoftBank.

The reported loss for the fiscal year 2022-23 stood at $500 million, indicating significant financial challenges for the company. However, Swiggy aims to address these losses for the fiscal year 2023-24 through strategic measures such as reducing wage payouts and curtailing marketing expenditures, as per insider sources cited in the report.

During the April to December 2023 period, Swiggy registered losses of $207 million against a revenue of $1.02 billion, marking a slight decline compared to the previous fiscal year’s revenue of $1.05 billion.

In the backdrop of India’s stock market witnessing a 28% surge over the past year, several companies are considering public listings. However, prospective entrants like Swiggy face cautious scrutiny from investors, particularly in light of recent market performances.

Paytm, another major player in the Indian market, faced an 80% drop in its shares post-listing in 2021, attributed partly to its high self-valuation. Similarly, Swiggy’s competitor Zomato initially encountered challenges after its 2021 listing, although it has since rebounded with two consecutive quarters of profits, leading to a notable surge in its shares.

Swiggy has diversified its offerings over time, expanding beyond food delivery to include grocery deliveries and restaurant bookings. Despite the reported losses, the company was valued at $10.7 billion by investors in 2022, underscoring its significant market presence and potential for growth in the evolving landscape of online services.