Swiggy revenue rises 45% to Rs 8,625 crore in FY23, loss widens to Rs 4,179 crore

.

Initial public offering (IPO)- bound Swiggy saw its revenue rise 45 percent to Rs 8,625 crore in FY23, while its net loss widened to Rs 4,179 crore, according to the company's annual filings shared by TheKredible.

In the previous financial year, the hyperlocal commerce unicorn had registered a revenue of Rs 5,705 crore and a net loss of Rs 3,629 crore.

For comparison, arch-rival Zomato's revenue had risen 66 percent to Rs 7,761 crore in FY23, while net loss narrowed to Rs 971 crore.

Some of Swiggy’s biggest expenses in FY23 were purchases of stock in trade which rose 48 percent to Rs 3,302 crore and employee benefits cost which grew 25 percent to Rs 2,130 crore.

In its FY23 report, Swiggy said that its restaurant booking platform Dineout contributed Rs 77.5 crore in revenue and Rs 176 crore operating loss during the financial year. The unicorn had acquired Dineout in a slump sale in July 2022 for Rs 645 crore.

Swiggy is eyeing a public market listing later this year and has even likely lined up investment bankers for the IPO, Moneycontrol had reported earlier.

In a move to cut costs before the IPO, Swiggy is laying off 400 employees in a restructuring move, we reported last week. This is the second round of layoffs at the food tech giant. The Bengaluru-based company had let go of 380 employees in January 2023 and even shut its meat marketplace in a bid to lower costs.

The latest cost-cut drive is likely to affect around 7 percent of Swiggy's workforce. The company has around 6,000 employees on its payroll.

Swiggy founder and CEO Sriharsha Mejety told Moneycontrol in Davos earlier this month that the food delivery business has slowed down faster than expected even as companies are penetrating deeper into more geographies. As the business grows at a slower pace, Instamart, the company's quick-commerce business, will be Swiggy's growth driver in the years to come, he said.