Foodtech and Quick Commerce platform decacorn Swiggy took a sudden jump of 45% in operating revenue for fiscal year ended March 2023 to 8,265 crore, even as its net loss expanded 15% to 4,179 crore. By second half of the year the company seeks to turn profitable by the second half of this year. The company is planning to introduce an IPO very soon.

Swiggy’s revenue from operations (gross revenue) grew 44.9% to 8,264.6 crore during the fiscal year ending March 2023 as opposed to 5,705 crore in FY22, according to the company’s annual financial statement with the Registrar of Companies. Swiggy collects revenue over 50% of through its online platform services including order facilitation fees, delivery income, advertisement revenue from sponsored listings, onboarding fees for partner merchants, subscription fees, and revenue from the sale of food and traded goods.

The firm’s marketing spend increased to 2,362 crore, accounting for 28% of operating revenue during FY23, compared to 44% in FY22.Other than the purchase of stock-in-trade, advertising and promotional expenses were Swiggy’s biggest overhead cost.

As per TheKredible, the purchase of stock accounted for 26.2% of the total expenditure. This cost surged 49% to 3,381 crore in FY23 from 2,268 crore during the previous year. Outsourcing support cost was the other major cost which went up 34.4% to 3,159 crore during the period. Subsequently, promotional and employee benefits cost rose to 2,362 crore and 2,130 crore, respectively. Significantly, employee cost also includes employee share based payment (cash settled) of 534 crore in FY23.

According to the report of Economic Times, recently Swiggy’s employee strength is 5,500-6,000, is seeking to cut down its employee strength by 6% from teams like technology, call centre, and corporate roles.

During last year, Swiggy’s cofounder and chief executive Sriharsha Majety had said the company’s food-delivery business had turned profitable as of March 2023 after factoring in all corporate costs, excluding employee stock option costs. According to Prosus, in this financial year the quick commerce business instamart executed a profit of gross merchandise value (GMV) of 63%.

Read More News :

Interim Initiation towards Stability: Anticipations from various Leaders

Adv. Prerna Launches Advanced Tech-Platform for Startups & MSMEs