Swiggy reports Rs 1,730 crore loss ahead of potential IPO

Swiggy's potential IPO: Food delivery giant Swiggy has disclosed a loss of around Rs 1,700 crore ($200 million) for the nine-month period ending December 2023, as per an internal document seen by Reuters. Backed by SoftBank, the company aims to join stock market, although concerns over high valuations and profitability persist among investors, both domestic and foreign.

Sources previously indicated to Reuters that Swiggy could initiate its IPO by the end of this year, amid a booming stock market climate. Despite the optimism surrounding IPOs, investors remain cautious, particularly regarding startups that continue to incur losses.

According to the disclosed document, Swiggy incurred a loss of Rs 4,180 crore for the full fiscal year 2022-23. However, the company's efforts to streamline operations, including reduced wage payouts and marketing expenses, are expected to mitigate losses for the fiscal year 2023-24.

During the first nine months of the fiscal year 2023-24, Swiggy reported losses amounting to Rs 1,730 crore alongside revenue of $1.02 billion. This is slightly lower compared to the revenue of $1.05 billion reported for the fiscal year 2022-23.

Despite repeated attempts, Swiggy declined to comment on the disclosed figures.

The stock market has witnessed remarkable growth over the past year, prompting several companies to consider public listings. However, discerning investors are closely evaluating IPOs, particularly in light of recent experiences. Digital payments firm Paytm, for instance, faced major share price declines post-listing in 2021, largely due to concerns over its high valuation and ongoing losses.

Swiggy's competitor, Zomato, saw similar challenges following its listing in 2021 but has seen a recent surge in share prices after posting consecutive quarterly profits.

Swiggy, valued at $10.7 billion by investors in 2022, initially gained prominence as a meal delivery platform but has since diversified its services to include grocery delivery and restaurant bookings. As

(With Reuters inputs)