Despite Losses, Swiggy Forges Ahead with IPO Plans
Despite Losses, Swiggy Forges Ahead with IPO Plans

Indian food delivery leader Swiggy reported a loss of $200 million for the nine months ending in December 2023, as per an internal document.

The company, aiming for a stock market debut, disclosed this financial information.

Sources previously informed Reuters that the SoftBank-backed firm might go public by the conclusion of this year.

Despite the flourishing state of India's stock market, both domestic and foreign investors have become cautious about Indian startup IPOs due to apprehensions regarding inflated valuations of companies that continue to incur losses.

According to the document, Swiggy incurred a loss of 41.8 billion rupees (equivalent to USD 500 million) for the entire fiscal year 2022-23.

However, a confidential source familiar with the situation, who preferred to remain anonymous, revealed that the company's reduction in wage payouts and marketing expenditure would aid in reducing losses for the entire fiscal year 2023-24.

According to the document, losses amounted to 17.3 billion rupees (equivalent to USD 207 million) for the period spanning from April to December 2023, marking the initial nine months of the fiscal year 2023-24.

During the same period, the document indicated that the loss was incurred on a revenue of USD 1.02 billion, compared to the fiscal year 2022-23 revenue of USD 1.05 billion. Swiggy did not provide any response to inquiries seeking comment.

India's stock market has seen a 28% increase over the last year, leading to numerous companies considering going public.

However, they are encountering discerning investors in the process.

Since its listing in 2021, digital payments company Paytm, which is still operating at a loss, has witnessed an 80% decline in its shares.

Analysts had criticized the company for overvaluing itself at the time of its listing.

Following its listing in 2021, Zomato, a competitor of Swiggy, experienced a significant decline in its shares.

However, this year, its shares have surged by 45% following two consecutive quarters of profitability.

Investors valued Swiggy at USD 10.7 billion in 2022. Initially focusing on meal deliveries, the company has diversified its services to include grocery deliveries and restaurant reservations over time.





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