India’s Swiggy on Monday reported that annual losses more than doubled during the financial year 2022, hurt by higher expenses, even as more people used the food delivery platform.
The SoftBank-backed company reported consolidated losses of Rs 3,628.9 crore for the financial year 2022 versus Rs 1,616.9 crore in the preceding financial year, according to its annual financial statement filed with the Registrar of Companies.
Revenue from operations, which doubled to Rs 5704.9 crore in FY22, was dampened by a jump in expenses to Rs 9,574.5 crore from Rs 4,139.4 crore in FY21.
The Indian food delivery industry, which is expected to breach the $10-billion GMV mark by 2025, is dominated by two players — Swiggy and Zomato — constantly vying for a bigger share of the market.
According to industry estimates, both Swiggy and Zomato process around 1.5 million orders daily. However, these numbers do not translate to profits, leading to both companies experimenting in other areas, including grocery delivery, which has players such as Zepto, Dunzo, and Zomato-owned Blinkit.
Earlier this year, the company bought Dineout, a dining-out and restaurant tech platform, for an undisclosed sum.
In an attempt to fend off competition and grow its Instamart business, Swiggy’s cost of product procurement rose to Rs 2,268 crore in FY22 from Rs 570 crore in FY21. Its advertising and promotional expenses jumped to Rs 1,848.7 crore, a 4x rise from FY21.
Earlier this year, Swiggy raised $700 million led by Invesco at a $10.7-billion valuation.
While the company hasn’t shared details on its current fiscal, Swiggy’s food delivery business orders reported a growth of 38% in the first six months of FY23, according to a report by Prosus, one of its biggest investors, VCCircle reported.