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Swiggy’s revenue surges in FY23, but so do its losses

Swiggy, one of India’s leading food delivery platforms, has reported a 45% increase in its operating revenue for the fiscal year 2023, reaching Rs 8,265 crore. However, the company also saw its net loss grow by 15% to Rs 4,179 crore, as it invested heavily in expanding its services and offerings.

Swiggy’s revenue sources and expenses

Swiggy earns revenue from various sources, such as online platform services, advertisement services, sale of food and traded goods, subscriptions, and other platform services. The company primarily caters to restaurant and grocery merchants, as well as delivery partners.

In FY23, Swiggy’s revenue from sale of food and traded goods was Rs 3,352 crore, up 58% year-on-year. Its revenue from sale of services was Rs 4,786 crore, up 39% year-on-year. The company also reported a revenue of Rs 77.5 crore from its restaurant booking platform Dineout, which it acquired in 2019.

However, Swiggy’s expenses also rose significantly in FY23, reaching Rs 12,884 crore, up 34% year-on-year. The major cost drivers for the company were purchase of stock-in-trade, which amounted to Rs 3,302 crore, employee benefit expenses, which reached Rs 2,130 crore, and advertising and promotional expenses, which were Rs 2,362 crore.

Swiggy’s revenue surges in FY23, but so do its losses

Swiggy’s growth and challenges

Swiggy’s revenue growth in FY23 was driven by several factors, such as the recovery of the food delivery market after the Covid-19 pandemic, the launch of new services and products, such as Swiggy Genie, Swiggy Instamart, and Swiggy Health Hub, and the expansion of its geographical presence and merchant base.

The company also raised $1.25 billion in funding from investors, such as SoftBank, Prosus, Accel, and DST Global, in July 2023, valuing it at $5.5 billion. Swiggy is reportedly eyeing an initial public offering (IPO) in 2024, and is aiming to achieve profitability and positive unit economics.

However, Swiggy also faces several challenges, such as increasing competition from its rival Zomato, which went public in July 2023, and reported higher revenue and lower losses than Swiggy in FY23. Swiggy also has to deal with regulatory uncertainties, such as the proposed e-commerce rules that could impact its business model and operations. Moreover, Swiggy has to cope with the rising expectations and demands of its customers, merchants, and delivery partners, who are seeking better quality, convenience, and value from the platform.

Swiggy’s future plans and outlook

Swiggy has stated that it will continue to invest in innovation and technology to enhance its customer experience and operational efficiency. The company also plans to diversify its revenue streams by exploring new segments, such as cloud kitchens, hyperlocal delivery, and subscription-based services.

Swiggy’s CEO Sriharsha Majety has said that the company’s vision is to become the most convenient and reliable platform for everyday needs of Indians. He has also expressed confidence that Swiggy will be able to achieve sustainable growth and profitability in the long term.

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