Foodtech major Swiggy has recorded 93 per cent increase in net losses to Rs 397 crores. During the 12 months period ending March 2018, it registered 230 per cent jump in revenue to Rs 442 crore.
The company’s total expenses for the fiscal were reported as Rs 865 crores. With 22 per cent, employee benefits expense is the largest component of the overall expenses. It stood at Rs 190 crore in FY18, as per Business Intelligence Platform Tofler.
The Bengaluru-based company had a revenue of Rs 133.06 crore while losses stood at Rs 205 crore in FY17. In comparison, Alibaba-backed Zomato had recorded 40 per cent growth in revenue to Rs 466 crore. It recorded a loss of Rs 106 crore in FY18.
Both companies have been spending heavily in current fiscal to dominate a larger market share and their losses are expected to surge significantly in FY19.
So far, Swiggy had raised about $310 million in this calendar year and entered covetous Unicorn club in June when it raised $210 million in June 2018. The company officially became the twelfth Indian Unicorn after Zomato, Paytm, BYJU’s and others.
At present, the company does about 22-25 million deliveries a month. Recently, its arch-rival Zomato had claimed a lead over Swiggy with 21 million monthly order run rate. Industry experts emphasise that Swiggy is still ahead from Zomato.
Monthly order run rate is essentially derived on the basis of a single day volume which companies factor for projecting monthly order. Companies usually choose the best day volume wise to forecast monthly order run rate.
Since the beginning of this year, rivalry in foodtech space in India is at its peak. Zomato, Swiggy, foodpanda, and UberEats have been offering subsidies to customers as well as restaurants heavily. Besides aggregating restaurants, they are also ramping up cloud kitchen model to improve unit economics.
Swiggy has been betting big on its cloud kitchen Swiggy Access and in-house labels including The Bowl Company and Homely. Operational in Bengaluru only, Swiggy is scaling up private labels to other cities including Mumbai, Hyderabad, and Delhi (NCR).
Earlier this month, Foodpanda had acquired Holachef in a distress ale to make entry into cloud kitchen segment. According to a Techcircle report, Swiggy is also planning to raise up to $900 million led by Naspers.