India’s Swiggy Reports $200 Million Loss Ahead of IPO Plans

• ByStartupStory     |    March 29, 2024

Indian food delivery giant Swiggy has revealed a significant loss of $200 million for the nine-month period ending December 2023, as per an internal document obtained from the company. This development comes as Swiggy gears up for its much-anticipated initial public offering (IPO) in the stock market.

The document also indicates that Swiggy suffered a staggering loss of 41.8 billion rupees ($500 million) for the entire fiscal year 2022-23. However, sources familiar with the matter suggest that strategic measures such as reduced wage payouts and cuts in marketing expenditures are expected to contribute to a reduction in losses for the fiscal year 2023-24.

“Swiggy’s lower wage payouts and marketing spending cuts will play a crucial role in mitigating losses for the current fiscal year,” a source with direct knowledge of the matter remarked, speaking on the condition of anonymity.

During the initial nine months of the fiscal year 2023-24, Swiggy reported losses amounting to 17.3 billion rupees ($207 million), juxtaposed with a revenue of $1.02 billion. This contrasts with the revenue of $1.05 billion recorded during the same period of the previous fiscal year, as outlined in the document.

The news of Swiggy’s substantial loss comes amidst a burgeoning stock market in India, albeit with increasing caution among investors, both domestic and foreign, regarding IPOs by Indian startups. Concerns primarily revolve around the potentially inflated valuations of companies that are yet to turn profitable.

“India’s stock market is witnessing robust growth, but there is a growing wariness among investors, particularly concerning the valuation of loss-making startups,” the document highlighted.

Swiggy’s IPO aspirations echo those of other major players in the Indian market, despite recent setbacks faced by companies like Paytm and Zomato. Paytm, a digital payments firm, saw its shares plummet by 80% since its 2021 listing, while Zomato initially faced a similar fate before witnessing a resurgence with two consecutive quarters of profits this year.

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