Swiggy reports 2.8 times growth in revenue, IPO could give good return: SoftBank founder

SoftBank founder Masayoshi Son highlighted in a post-earnings presentation that the revenue of food delivery company Swiggy has grown 2.8 times in the last year, between June 2020 and June 2021. He also said that Swiggy will give a "good return" if the company were to go public.

"If they (Swiggy) go public, I believe that we will be able to see good returns from here too, that's our expectation," Masayoshi said, asserting that Swiggy holds an equal market share in the competition with Zomato.

Last month, the startup raised $1.25 billion in a funding round led by SoftBank Vision Fund 2 and Prosus. Speaking at the presentation, he said Swiggy is attending 1.5 million orders a day and has about 20 million monthly active users.

Son noted that Swiggy is also delivering goods other than food and that the "number of orders per day has increased by about 2.5 times in one year" and "revenue has increased by 2.8 times in one year." He, however, did not reveal the figures for the quarterly (April-June) performance of Swiggy.

Being a private limited company, Swiggy is not mandated to reveal its financial statements. Zomato, on the other hand, has to share it publically as it is a listed company.

Zomato quarterly results

Zomato, according to its quarterly results that culminated on June 30, 2021, posted a significant increase in a net loss. The company's net loss has widened to Rs 356 crore against Rs 99.8 crore for the corresponding period of the previous fiscal. The food aggregator's revenue stood at Rs 844.4 crore during the same period, while total expenses rose to Rs 1,259.7 crore.

"We had 310k active delivery partners in July, which is the highest ever in our lifetime," Zomato CEO Deepinder Goyal and CFO Akshant Goyal said in a letter. They also informed that the top 20% of Zomato's delivery partners, who work over 40 hours a week, earn more than Rs 27,000. Last month, Zomato debuted made a stellar debut on Indian bourses, with its shares zooming 53% against the issue price of Rs 76.

Image Credit: PTI