Zomato rival Swiggy's FY23 revenue climbs 45% to Rs 8,265 crore; Losses went up by 15%

Foodtech giant Swiggy, which battles with profitable Zomato, has reported a significant 45% increase in its operating revenue for the fiscal year ended March 2023, reaching Rs 8,265 crore. 

Despite this growth, the company's net loss expanded by 15% to Rs 4,179 crore. This comes after reports claimed that Swiggy is preparing to launch an initial public offering (IPO).

Rise in expenditure  

While Swiggy continues to witness a rise in revenue, The company's total expenses also increased by 34% to Rs 12,884 crore in FY23. Major cost heads included the purchase of stock-in-trade, advertising, and promotional expenses. 

Notably, Swiggy's marketing spending rose to Rs 2,362 crore, accounting for 28% of its operating revenue. Employee benefit expenses also increased to Rs 2,130 crore.

Laying off employees  

Swiggy currently employs between 5,500-6,000 people and reportedly preparing to layoff at least 6% of its total workforce, affecting 350-400 roles across various departments. 

The move comes as the company started focusing on becoming leaner and achieving profitability ahead of its $1 billion IPO. Previously, in January last year, Swiggy had let go of 380 employees in a restructuring exercise.

How well competition is performing?

Swiggy's revenue primarily comes from online platform services provided to merchants, advertisement services, and the sale of food and traded goods.

The sale of food and traded goods brought in Rs 3,352 crore, up 58% year-on-year. In contrast, its key rival, Zomato, reported a consolidated operating revenue of Rs 7,079 crore in FY23 and a net loss of Rs 971 crore. However, Zomato recently turned positive with a profit of Rs 36 crore in the second quarter of FY24. 

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