Swiggy's growth declines in FY21 as net operating revenue drops 26.5%, narrows losses

Bundl Technologies, the parent company of food tech major Swiggy, has witnessed a decline in its revenue as the company recorded net operating revenue of Rs 2,547 crore for the financial year ended March 31, 2021, a drop from Rs 3,468 crore registered in FY20. The total income stood at Rs 2,675 crore.

The regulatory filing sourced from Tofler cites lockdown and restriction on delivery services, the primary reason for the decline in growth.

The decacorn reported a net loss of Rs 1,314 crore for the same fiscal. This is a 65 percent decrease from the last financial year. Further, the company’s total expenses stood at Rs 3,310 crore. Its total employee benefit expense stood at Rs 935 crore which was one of the primary expenses.

However, the company posted a salary increase of 10% and an attrition rate of 30%.

“Our business has shown strong recovery through the year and has grown by 1.2x from March 2020 level and 2.2x from June 2020 levels with a strong focus on Customer Acquisition and Retention; Supply Improvements (both Restaurants and Delivery Riders) and a high bar on Experience with focussed interventions on improving Selection, Price and Convenience, and Policies for our customers as well as partners,” said the company in the filing.

“As our company continued to focus on business recovery and associated Unit Economics the contribution margins improved significantly with operational efficiency, and reduction in defects. The contribution margin per order improved by 150% YoY; leading to a reduction in PBT losses by 39 ppt of revenues YoY.”

Earlier this month, Swiggy raised $700 million at a valuation of $10.7 billion, doubling its valuation in six months. Swiggy's fundraise came at a time when Reliance Retail said it led a $240-million round in rival on-demand delivery startup Dunzo.