Swiggy Encounters A Loss Of INR 2,364 Cr

Relation of loss ratio across years

Internet’s food delivery chain saw a good rise in its revenue on initial years of the company’s growth but during the time of the financial year 2018-19, they encountered an increase in loss numbers figuring out to be Rs 2,364 Cr.

The previous year data shows comparatively less amount of loss figures around Rs733 Cr but also there was an enhancement in revenue up to Rs 1,297 Cr. It was a recorded increase of 177% over previous year. The information was sourced from the company’s filings with the Ministry of Corporate Affairs.

Raising Funds and Managing Investments

The company had no difficulty in raising funds and bringing in investments from their existing investors and also from new ones in the market. The burn was to compete with their big rivals Zomato and Uber eats by developing new strategies to remain in a challenging market.

The year 2018-19 appeared with some decent increase in expenditure such as Employee expenses which stood around Rs 544 Cr, Marketing and Advertisingexpenditure of Rs 778 Cr increasing six-fold and delivery cost being highest among all with a whopping amount of Rs 1,594 Cr.

Quick insight from investors

• Prosus, an investor with its shares listed in Amsterdam is responsible for the increase in financial figures of the company.

• After its filing in Nov 2019, the company posted a revenue of Rs 875 Cr in the first and second quarters of the year with its loss number increasing in parallel order.

• One thing which interests the investors is the company’s triple-digit growth in revenue citing an example and enjoying market leadership without caring much about future prospects.

On the whole, swiggy has expanded its business horizontally and vertically by adding swiggy stores, swiggy go and grocery delivery services such as Suprdaily. The company claims to have a jump of 4.2% in its customer base which seems to pave a good path for its future.