Just ahead of launching IPO, Swiggy poses $200mn loss for 9months to Dec23

By siliconindia  |  Friday, 29 March 2024, 12:47 IST

Just ahead of launching IPO, Swiggy poses $200mn loss for 9months to Dec23
Indian food delivery startup Swiggy has recently recorded a loss of $200million for the nine months to December 2023, the internal document of the company reveals. According to the media firm Reuters,the foodtech platform which is backed by SoftBank could list by the end of this year.  Reporedly, India’s Stock market is propelling though the domestic and foreign investors have become more circumspect about IPOs by Indian startups as unrealistically high valuations of companies are making losses still now.
For the whole fiscal year, Swiggy faced a loss of 41.8 billion rupee ($500 million), but the company’s lower wage payouts and cuts in marketing spending will help it trim losses for the full year 2023-24. The detailed document presented that, the overall losses were recorded at 17.3 billion rupees $207 million during April to December 2023 during the first nine months of the fiscal year 2023-24. That loss was on revenue of $1.02 billion during the same period, compared with fiscal year 2022-23 revenue of $1.05 billion.
The stock market of India has seen an upsurge of 28% over the past year and many companies plan listings, but they facing discerning investors. Digital payments platform Paytm, is still making loss, and has seen its shares drop by 80% since its 2021 listing, with the company facing criticism from analysts at the time for valuing itself too high.
The strongest competitor of Swiggy, Zomato also faced a loss after 2021, but fortunately they have recovered after they face 45% upsurge this year after posting two successive quarterly profits. Swiggy was started with food delivery but gradually they shifted to grocery and essential commodity delivery platform. It was valued 10.7million by investors in 2022.

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