Swiggy has reportedly incurred a loss of $200 million during the nine-month period ending December 2023, news platform Mint reported citing an internal document.
The SoftBank-backed food and delivery start-up is preparing for its stock market debut. It is expected that the company will target the IPO issue by the end of the year.
Swiggy incurred a loss of 41.8 billion rupees ($500 million) for the fiscal year 2022-23, as per the document. However, the company aims to reduce losses for the full year 2023-24 through measures such as lower wage payouts and reduced marketing expenditure, the report added.
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The document revealed a loss of 17.3 billion rupees ($207 million) during the first nine months of fiscal year 2023-24, from April to December 2023. This loss was accompanied by a revenue of $1.02 billion during the same period, compared to $1.05 billion in revenue for the fiscal year 2022-23.
India's stock market has witnessed a remarkable 28 per cent surge over the past year, prompting numerous companies to consider listings. However, discerning investors are now more cautious. Paytm, a digital payments firm, faced an 80 per cent drop in its shares since its 2021 listing, with analysts criticizing its high valuation. Similarly, Swiggy's rival Zomato experienced a decline in shares post its 2021 listing, but has seen a resurgence this year after reporting two consecutive quarters of profit.
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Swiggy, valued at $10.7 billion by investors in 2022, initially focused on meal deliveries but has since diversified into groceries and restaurant bookings.
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