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Swiggy’s losses more than double at Rs 3628.90 crore in FY22 – The Economic Times

Food and grocery delivery platform Swiggy’s revenue from operations jumped 124% to Rs 5,704.90 crore in financial year 2021-22 (FY22), while losses more than doubled to Rs 3,628.90 crore from Rs 1,616.90 crore in FY21, regulatory filings sourced from business intelligence platform Tofler showed.

The Bengaluru-based company invested aggressively in its quick commerce platform Instamart during the year. Its sales from grocery and FMCG products expanded nearly four times to Rs 2,036 crore in FY22.

The biggest revenue head – platform services – clocked in Rs 3,444.40 crore, from Rs 1,878.90 crore in FY21.

Sales from Swiggy’s cloud kitchen brands such as Homely, The Bowl Company, Breakfast Express, among others, grew marginally to Rs 87.50 crore in FY22 from Rs 83.30 crore in FY21.

Even as losses mount for the company, ET reported on December 9 that
Swiggy had fired 250 executives, comprising 3-5% of its workforce, across supply chain, operations, customer service and technology roles.

The company primarily generates revenue from providing online platform services to restaurants, grocery merchants and delivery partners, advertisement services, sale of food and traded goods, subscriptions, and other services.

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Losses were primarily due to a surge in the Prosus-backed company’s expenses, which rose to Rs 9,574.50 crore in the year ended March 31, 2022, compared to Rs 4,139.40 crore in the previous year.
At Rs 1,848.70 crore, Swiggy’s advertising and promotional expenses in FY22 were four times more than in the year-ago period, when it was Rs 570 crore.

In January 2022,
Swiggy raised $700 million in a funding round led by Invesco as it ramped up its firepower to compete with rival Zomato in the food space and players such as Blinkit and Zepto in the quick-commerce space.

In December 2021, Swiggy cofounder and chief executive Sriharsha Majety had told ET that the platform had
earmarked $700 million for its Instamart service amid heightened investor interest and growing competition in the instant grocery delivery segment.

According to a recent note by brokerage firm Jefferies, Swiggy’s losses during the January-June 2022 period were “much higher at over $315 million”, compared to about $50 million in losses for Zomato on a standalone basis and nearly $170 million inclusive of losses at the latter’s quick commerce unit Blinkit.

Zomato has been reducing losses in the ongoing financial year.

For the September-quarter, the Gurugram-based company’s net loss narrowed to Rs 251 crore, against Rs 430 crore in July-September 2021.

Swiggy has been cutting down on costs as it moves towards becoming a leaner company.

It shut down some of its cloud kitchen brands including The Bowl Company in geographies like Delhi-NCR.

ET reported that Swiggy fired 250 people, comprising 3-5% of its workforce, during December across supply chain, operations, customer service and technology roles.

On November 24, Swiggy’s investor Prosus said the company’s core food-delivery business clocked order growth and gross merchandise value (GMV) growth of 38% and 40%, respectively, for the first six months of calendar 2022.

Swiggy’s quick-commerce business Instamart saw order and GMV growth of 20 times and 15 times, respectively.

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