Swiggy, an online food delivery platform has reported that the company has been facing losses which are doubled the previous amount witnessed. The loss has excel to Rs 3,629 crore in the financial year 2022 (FY22) when compared to the last fiscal year which was Rs 1,617 crore. ALSO READ: Why did Apple fail to launch a classical music app last year?
Total expenses went up by 131 per cent to Rs 9,574.5 crore in FY22. According to its annual financial statement with the Registrar of Companies (RoC), during the last quarter of FY22, Swiggy turned "decacorn" (with a valuation of $10 billion and above) after raising a $700 million round led by Invesco. ALSO READ: Samsung Galaxy Buds2 Pro Review: Perfect Premium Buds under 20K
Furthermore, Swiggy's revenue grew 2.2 times to Rs 5,705 crore during FY22 as opposed to Rs 2,547 crore in FY21.
According to Entrackr, outsourcing support costs accounted for 24.5 per cent of the total expenses of the company.
This particular cost increased 2.3 times to Rs 2,350 crore in FY22 from Rs 1,031 crore in FY21.
Its advertising and promotional expenses surged 4 times to reach Rs 1,848.7 crore during FY22, according to the report.
Reports surfaced last month that Swiggy may lay off more than 250 employees or up to 5 per cent of its workforce starting January.
"There have been no layoffs at Swiggy. We concluded our performance cycle in October and have announced ratings and promotions at all levels. As with every cycle, we expect exits based on performance," a Swiggy spokesperson said in a statement.
Swiggy 2021 Food survey reveals India ordered 115 biryanis per minute & 5 million samosas this year!
The upcoming layoffs are likely to impact Swiggy's quick commerce delivery service Instamart to reduce cash burn.
In November, global brokerage firm Jefferies said that Swiggy was fast losing market share to its rival Zomato despite offering heavy discounts.
Citing Swiggy investor Prosus' financial report, Jefferies said that the gross value of Swiggy's food delivery business was $1.3 billion in the January-June period this year.
Zomato in the same period logged a gross order volume of $1.6 billion.
In May last year, Swiggy acquired Dineout, a dining-out and restaurant tech platform, for an undisclosed sum. According to sources, the acquisition size was around $200 million.
Earlier this year, the food delivery platform raised $700 million led by Invesco at a $10.7 billion valuation.Inputs from IANS