Food delivery startup Swiggy’s losses mounted six-fold for the financial year-ended March 2019, the regulatory filings show.
Swiggy recorded a net loss of Rs 2,367 crore in FY19. On the other hand, the startup’s revenue went up by three-fold for the same period.
"FY 18-19 has been another strong year of execution for Swiggy as we continued to grow our dominant market leadership position. We saw a 4.2x increase in order volumes and a 2.8x increase in operating revenue despite a higher baseline, underscoring our ability to grow in a sustainable manner over the long-term. During the year, we made many strategic bets and investments in technology, brand and supply creation that have been the drivers of category growth in Indian food delivery and will bear fruit in Swiggy’s vision," said a Swiggy spokesperson.
In FY19, Swiggy’s expenses for increased to Rs 3,659.1 crore, of which operational costs accounted for Rs 1,681.2 crore.
The startup also incurred a cost of Rs 113.4 crore on account of undelivered orders and canceled orders in FY19 which was categorized as a loss in the same year. The amount also includes “cost of orders cancelled by the customers after the orders have been picked up by the delivery partners…it also includes cash loss incurred due to absconding of the delivery partners with cash" Swiggy said in a note in its financial statements.
At present, Swiggy logs nearly 1.4 million food orders daily across India. The startup has a presence in over 500 cities and towns, 140,000 restaurants on its platform and 2.1 lakh active delivery partners.
“In India, Swiggy continues its impressive run with orders up 165% year on year and GMV up a 134% year on year. The company remains the clear market leader in India, with 1.5 times more market share than its closest competitor, based on mobile app (Android) daily average users,” said the filing.