Swiggy Losses to reach INR 2,363 Cr in FY19

Founded in August 2014 by BITS Pilani alumni Sriharsha Majety, Nandan Reddy and IIT Kharagpur graduate Rahul Jaimini. It gives a strong competition to others including Deepinder Goyal’s venture Zomato which operates in about 500 cities in the country.

Bengaluru-based Swiggy’s parent company Bundl Technologies processes over 1.4 Mn orders per day, it has acquired Supr Daily in 2018 and started Swiggy Go and the company has noted a 5X hike in its losses, amounting to INR 2,363 Cr in the fiscal year 2019, ending March 31 from INR 397 Cr in FY 18.

Swiggy spokesperson, FY 18-19 has been “another strong year of execution for Swiggy.” The company claims to have achieved a dominant position in the food delivery segment by recording a 4.2 times increase in order volumes and 2.7x increase in its operating revenues “despite a higher baseline”.

Swiggy spent over INR 4491 Cr in the fiscal, while food delivery alone cost the company more than it earned throughout the year. Moreover, the company has also increased its spending in marketing and advertising this year by 80%. Swiggy spent INR 778 Cr in advertising and marketing activities in FY19, versus INR 154.85 Cr in the previous year, which explains the rise in losses.

Along with the expenses and losses, Swiggy also made some strategic investments in technology, brand and supply creation to fuel its growth, the company’s spokesperson said.