Swiggy's losses jump 2X to Rs 3,629 cr in FY22, layoffs coming
Swiggy's losses jump 2X to Rs 3,629 cr in FY22, layoffs coming

Online food delivery platform Swiggy's losses doubled to Rs 3,629 crore in FY22 compared to Rs 1,617 crore in the last fiscal year. Total expenses went up 131 per cent to Rs 9,574.5 crore in FY22.

Swiggy turned "decacorn" (with a valuation of $10 billion and over) during the final quarter of FY22, according to its annual financial statement filed with the Registrar of Companies (RoC), after financing a $700 million round led by Invesco.

In the meantime, Swiggy's revenue increased by 2.2 times in FY22, from Rs 2,547 crore to Rs 5,705 crore. According to Entrackr, outsourcing support costs made up 24.5% of the company's overall expenses.

From Rs. 1,031 crore in FY21 to Rs. 2,350 crore in FY22, this particular expenditure climbed by a factor of 2.3. During FY22, its marketing and advertising costs more than quadrupled to reach Rs 1,846.7 crore.

Instamart, Swiggy's quick commerce delivery service, is likely to be impacted by the impending layoffs in order to save money.

Despite giving significant discounts, global brokerage firm Jefferies said in November that Swiggy was rapidly losing market share to its competitor Zomato.

According to Jefferies, the gross value of Swiggy's food delivery service was $1.3 billion between January and June of this year, citing financial data from Swiggy investor Prosus.

Zomato reported a $1.6 billion gross order volume within the same time frame.

For an undisclosed fee, Swiggy purchased the eating and restaurant software platform Dineout in May of last year. Sources claim that the deal cost roughly $200 million.

The food delivery service raised $700 million earlier this year under the leadership of Invesco, valued at $10.7 billion.

 

 
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Elior in talks with food tech brands for extending its operations
Elior in talks with food tech brands for extending its operations
 

Elior, the contract food catering and support services provider, is in talks with multiple food tech brands for extending operations from the business-to-business space to include a consumer-facing business. For the same, Elior will soon be introducing a business-to-consumer food services arm.

Sanjay Kumar, Managing Director of Elior India, said, “The company has outpaced industry growth in food services, and that it plans to touch sales of $100 million in India by 2020. Compass and Sodexo are the other two significant contract catering operators in the country.”

The contract catering market in India comprises of more than two million organised caterers, and is valued at $3.3 billion, clocking a growth of 16%.

The Elior group had entered India three years back. It owns a majority 70% stake in Chennai-based CRCL and acquired Bengaluru-based Megabite Food Services.  

Elior has eight central kitchens in the country. It is serving over one lakh meals daily to the employees of various corporate clients.

 

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Passengers can now order food from McDonald's, Domino's during train journeys
Passengers can now order food from McDonald's, Domino's during train journeys
 

The Indian Railways has come with a new service that allows passengers to book their favourite fast food and get it delivered to their seats. Starting from 15 June, passengers onboard Rajdhani and Shatabdi trains will be able to pre-order meal from various popular food outlets such as McDonald’s, Domino’s and KFC.

Passengers can order their meal online, on phone or by SMS. The mandatory meals for these train journeys have also been made optional.

Passengers can order their food online on www.ecatering.irctc.co.in or call 1323 or SMS 'MEAL' followed by PNR number to 139 and place order.

To give more food options to passengers, Indian Railways has also tied up with various food chains like McDonald’s, KFC, Switz Foods, Only Alibaba, Dominos, Haldiram, Bikanerwala, Nirulas, Sagar Ratna and Pizza Hut.

 

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