Swiggy's losses jump 2X to Rs 3,629 cr in FY22, layoffs coming

Online food delivery platform Swiggy's losses doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year. Total expenses went up 131 per cent to Rs 9,574.5 crore in FY22.

Swiggy turned "decacorn" (with a valuation of $10 billion and over) during the final quarter of FY22, according to its annual financial statement filed with the Registrar of Companies (RoC), after financing a $700 million round led by Invesco.

In the meantime, Swiggy's revenue increased by 2.2 times in FY22, from Rs 2,547 crore to Rs 5,705 crore. According to Entrackr, outsourcing support costs made up 24.5% of the company's overall expenses.

From Rs. 1,031 crore in FY21 to Rs. 2,350 crore in FY22, this particular expenditure climbed by a factor of 2.3. During FY22, its marketing and advertising costs more than quadrupled to reach Rs 1,846.7 crore.

Instamart, Swiggy's quick commerce delivery service, is likely to be impacted by the impending layoffs in order to save money.

Despite giving significant discounts, global brokerage firm Jefferies said in November that Swiggy was rapidly losing market share to its competitor Zomato.

According to Jefferies, the gross value of Swiggy's food delivery service was $1.3 billion between January and June of this year, citing financial data from Swiggy investor Prosus.

Zomato reported a $1.6 billion gross order volume within the same time frame.

For an undisclosed fee, Swiggy purchased the eating and restaurant software platform Dineout in May of last year. Sources claim that the deal cost roughly $200 million.

The food delivery service raised $700 million earlier this year under the leadership of Invesco, valued at $10.7 billion.