In FY21, Swiggy’s loss narrowed 58% to INR 1,616.9 Cr from INR 3,920.4 Cr in FY20
The foodtech giant saw its revenue from operations drop to INR 2,546.9 Cr in FY21 from INR 3,468 Cr in FY20
In FY21, Swiggy also launched Instamart to deliver essential kitchen requirements
Food tech giant Swiggy, which recently achieved decacorn status, narrowed its consolidated loss by 58.7% in FY21. The Bengaluru-based food delivery aggregator posted a loss of INR 1,616.9 Cr in financial year 2020-21 (FY21) as against a loss of INR 3,920.4 Cr in FY20.
The SoftBank-backed startup’s total revenue declined to INR 2,675.9 Cr in FY21 from INR 3,727.7 Cr in FY20, while revenue from sales fell 26.5% to INR 2,546.9 Cr in FY21 from INR 3,468.1 Cr in FY20, according to its regulatory filings.
It must be noted that the COVID-19 pandemic and the lockdowns to control the spread of infections in FY21 had affected the business of many companies, including Swiggy. During the initial phases of the lockdown, there was confusion among the government authorities on considering food delivery as an ‘essential service’.
Besides, several housing societies also banned food delivery executives from entering the society fearing the spread of the virus. All these factors took a hit on the food delivery business of Swiggy.
However, the startup took the opportunity to launch Swiggy Instamart in August 2020 to deliver kitchen essentials. Since then, it has been investing heavily to grab a major chunk of the market share in the burgeoning quick-commerce segment in the country.
With operations curtailed for a few months of the year, Swiggy’s total expenses dropped over 45% to INR 4,139.4 Cr in FY21 from INR 7,594.8 Cr in FY20. Its ‘cost of material consumed’ declined to INR 37.9 Cr from INR 149 Cr in FY20.
Besides, employee benefit expenses also decreased 10.9% to INR 1,085.3 Cr in FY21 from INR 1,218.1 Cr in FY20. Employee benefit expenses normally consist of salaries of employees, PF contribution, gratuity, among others.
Swiggy’s other expenses, which include cost of operations, dropped to INR 2,190 Cr in FY21 from INR 5,743.1 Cr in FY20.
Focus On Diversification
While the startup made its foray into a new vertical with the launch of Instamart in 2020, it acquired Dineout in a $200 Mn deal earlier this year to tap the restaurant dine-in business.
Till now, Zomato had an edge over Swiggy as it had offerings for dine-in business. With Dineout in its pocket, Swiggy will not only let customers book tables in restaurants but also allow booking tickets for various outdoor events, including food festivals, night markets, stand-up comedy events, movie nights, among others.
Swiggy also launched Minis, an ecommerce enabler platform for sellers, earlier this year. It helps sellers establish online presence to increase their customer reach.
In January, Swiggy raised $700 Mn in a round led by Invesco at a valuation of over $10 Bn, joining the decacorn club.