Food-tech Platform Swiggy’s FY22 Loss Doubles

Advertisements

Bundl Technologies, which operates the food delivery platform Swiggy, increased its loss due to rising expenses.

The SoftBank-backed company reported a consolidated loss of Rs 3,628.9 crore for the fiscal year 2022, which is more than double the previous year’s loss of Rs 1,616.9 crore.

Swiggy’s expenses have nearly reached Rs 10,000 crore, resulting in the loss. Total expenses increased 2.3 times to Rs 9,574.5 crore in FY22, compared to Rs 4,139.4 crore in FY21.

Swiggy, based in Bengaluru, provides a marketplace for food orders and delivery via its technology platform, which was recently valued at $10.7 billion.

In FY22, the Softbank-backed food tech firm reported revenue from operations of Rs 5704.9 crore, more than doubling from Rs 2546.9 crore the previous year.

Over 60 per cent of this, or Rs 3,444.4 crore, came from service sales, which is the income the company earns from providing platform services. The remaining Rs 2123.1 crore came from product sales, primarily from the sale of traded goods on its platform.

Swiggy makes money by offering online platform services to partner merchants (including restaurant merchants, grocery merchants, and delivery partners), advertising services, food and traded goods sales, subscriptions, and other platform services.

In FY22, the Softbank-backed food tech firm reported revenue from operations of Rs 5704.9 crore, more than doubling the previous year’s figure of Rs 2546.9 crore.

Over 60% of this, or Rs 3,444.4 crore, came from service sales, which is the revenue generated by the company’s platform services. The remaining Rs 2123.1 crore was generated by product sales, primarily the sale of traded goods on its platform.

Swiggy generates revenue by providing online platform services to partner merchants (including restaurant, grocery, and delivery partners), advertising services, food and traded goods sales, subscriptions, and other platform services.

Swiggy lost Rs 156.4 crore due to customer order cancellations after the orders were picked up by the delivery partners from the respective restaurants.

In January 2022, the company raised $700 million in a funding round led by Invesco. It is supported by Alpha Wave Global, Qatar Investment Authority, and ARK Impact, among others.

While the company has not disclosed financial details for the current fiscal year, Swiggy’s food delivery business orders increased by 38 per cent in the first six months of FY23, according to a report by Prosus, one of its largest investors. The company’s total sales or gross merchandise value increased by 40 per cent.

Swiggy also has its own cloud-based kitchens. It will launch new private labels, Soul Rasa and Stuffed, in Chennai and Bengaluru in July 2022. On its food delivery platform, it also operates other private labels such as Homely, Breakfast Express, and Goodness Kitchen.

Customers can order groceries and daily necessities like milk, bread, and other items on a pre-subscription basis through the company’s quick-commerce vertical Instamart.



Categories: Other News

Leave a Reply Cancel reply

%%footer%%