Swiggy, the online food delivery platform, reported an expansion in its net losses to Rs 4,179 crore in the financial year ending March 31, 2023. Despite this, the company experienced a significant increase in operating revenue, rising by around 45% to Rs 8,264 crore in FY23 from Rs 5,704 crore in FY22. The Invesco-backed platform incurred a net loss of Rs 4,179.3 crore in FY23, reflecting a 15% increase from Rs 3,628.9 crore in the previous fiscal year.
The cost of employee benefits also saw a notable rise, climbing by 25% to Rs 2,130 crore. Swiggy's restaurant technology platform Dineout, acquired in 2022 for approximately $150 million, generated Rs 77.5 crore in revenue but incurred an operating loss of Rs 176 crore during the financial year.
In an effort to improve its financial position before an anticipated IPO later in the year, Swiggy has announced a reduction of almost seven percent of its workforce, translating to about 350-400 jobs. This move follows a prior workforce reduction of 380 jobs in January 2023, along with the closure of its meat marketplace, as part of a cost-cutting strategy.
The valuation of Swiggy received a boost from the US-based investment company Invesco, reaching approximately $8.3 billion. In October of the previous year, Invesco had already increased the valuation of the food delivery platform to about $7.85 billion.
(With Agency Inputs)
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