Swiggy’s sales are down 27% in FY21 because of pandemic-related lockdowns, which have stifled demand
According to regulatory filings, food tech platform Swiggy, controlled by Bundl Technologies Pvt Ltd, reported a 27 per cent drop in operational revenue for 2020-21 (FY21) as Covid-19 induced lockdowns reduced demand for online food delivery during the time.
According to the company’s filings with the ministry of corporate affairs, the recently-turned decacorn recorded consolidated operational sales of 2,547 crores in FY21, down from 3,468 crores in FY20. Privately held companies with a market capitalization of $10 billion or more are known as decacorns.
Similarly, the company’s consolidated total income fell by 28% to 2,676 crores.
However, a steep drop in material prices, along with lower employee benefit costs and other expenditures, such as order cancellation losses, outsourced support costs, and payment gateway charges, led to a near 46 per cent reduction in consolidated total expenses. Swiggy’s consolidated net loss shrank to 1,617 crores from 3,920 crores the previous year.
Swiggy makes the majority of its money from service revenues, which it earns by charging partner restaurants a commission fee when an order is completed through its platform. Service revenues dropped drastically from 2,352 crores a year ago to 1,562 crores. Swiggy, which also makes money from deliveries, saw its delivery revenue plummet by nearly 75% last year. Fees for promoting restaurants on top of its food discovery ideas decreased by 19%.
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