Zomato rival Swiggy recorded a massive loss of Rs 1,667 crore from April to December 2023

Zomato rival Swiggy has reportedly recorded a massive loss of $207 million or R 1,667 crore during the first nine months of the fiscal year 2023-24, Reuters reported. 

Despite this, the company has shown resilience, with a reported revenue of $1.02 billion in the same period. The performance is noteworthy, especially considering that the net loss in the previous fiscal year (FY23) was substantially higher.

Strategic cost reductions

The company has embarked on a journey of cost optimization, focusing on reducing marketing expenses and employee costs. These efforts are part of a broader strategy to trim the net loss for the full year ending March 2024. 

Swiggy has used several strategies to increase its revenue, including more orders from Instamart, adding platform fees, and growing its dining-out business. These steps have not only raised the company's earnings but also broadened where its income comes from, moving beyond just delivering food. =

Preparing for the IPO launch 

As Swiggy gears up for a $1 billion IPO, the company is focusing on financials as well as operational efficiencies. This includes partnerships, such as with IRCTC for meal deliveries to train passengers, and strategic mergers to streamline operations. 

Swiggy's FY23 financial growth

In January this year, Swiggy reported a significant 45% increase in its operating revenue for the fiscal year ending 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).

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.