Swiggy, the massive Indian food delivery firm that plans to go public, shows that the company lost $200 million in the nine months ending in December 2023.
By year’s end, the SoftBank-backed business might go public, according to earlier Reuters sources. The Indian stock market is expanding, but both domestic and foreign investors are becoming less enthusiastic about Indian startups’ initial public offerings (IPOs) due to worries about the inflated values of businesses that are still losing money.
The document states that Swiggy lost 41.7 billion rupees ($500 million) over the entire fiscal year 2022–2023. However, the company will be able to reduce losses for the entire year 2023–2024 thanks to fewer wage payouts and reduced marketing spending, according to a source with firsthand knowledge of the situation who wished to remain anonymous.
The report revealed that over the first nine months of the fiscal year 2023–2024, or April to December 2023, losses were 17.3 billion rupees, or $207 million.
According to the paper, the loss was incurred on $1.01 billion in revenue during that same period, as opposed to $1.05 billion in revenue for the fiscal year 2022–2023.
Rival Swiggy’s Zomato had a similar decline in share price following a 2021 IPO, but this year they have risen 45% after a string of two consecutive quarters of earnings.
Investors valued Swiggy at $10.7 billion in 2022. Initially offering meal delivery, it has progressively grown to include grocery delivery and restaurant reservations.
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