Bundl Technologies Pvt. Ltd, which runs food delivery platform Swiggy, widened its loss on the back of rising expenses.
The SoftBank-backed company reported a consolidated loss of Rs 3,628.9 crore for the financial year 2022, which is more than double of its Rs 1,616.9 crore loss in the preceding financial year.
The loss comes on the back of Swiggy’s expenses which are close to touching Rs 10,000 crore. In FY22, the total expenses jumped 2.3x to Rs 9,574.5 crore, compared to Rs 4,139.4 crore in FY21.
Bengaluru-based Swiggy, last valued at $10.7 billion, provides a marketplace for food orders and delivery through its technology platform.
The Softbank-backed food tech firm reported a revenue from operations of Rs 5704.9 crore in FY22, which doubled from Rs 2546.9 crore in the year before.
Of this, over 60% or Rs 3,444.4 crore came from sales of services, which is the income company’s earn from providing platform services. The remaining – Rs 2123.1 crore – came from the sale of products, majorly from the sale of traded goods on its platform.
Swiggy earns by providing online platform services to partner merchants (including restaurant merchants, grocery merchants and delivery partners), advertisement services, sale of food and traded goods, subscriptions and other platform services.
Overall, the firm’s marketplace and its business-to-business (B2B) segment, where it is involved in trading of fast-moving consumer goods, are its major revenue verticals. While the marketplace contributes over 60%, its B2B segment is responsible for 37.7% of its revenue.
Of its expenses, the highest contribution-about 24.5%-was of outsourcing support cost. This also includes the support cost the firm provided to delivery partners. The company spent Rs 2350.2 crore in outsourcing support cost in FY22.
Further, the company spent Rs 2224.5 crore in purchasing finished goods in FY22, about four times more than Rs 526.6 crore in the previous year.
During the year, Swiggy’s advertising and promotion expenses also grew by 4x. It spent about Rs 1848.7 crore for advertising in FY22, compared Rs 461 crore the year before. Swiggy’s employee benefit expense grew 57.4% to Rs 1708.5 crore in FY22.
Swiggy lost Rs 156.4 crore due to order cancellations by the customers, after the orders have been picked up by the delivery partners from the respective restaurants.
The company had last raised $700 million in a funding round led by Invesco in January 2022. It is backed by investors including Alpha Wave Global, Qatar Investment Authority, and ARK Impact, among others.
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. The firm’s total sale or gross merchandise value grew by 40%.
Swiggy also operates its own cloud- kitchens. In July 2022, it launched new private labels, Soul Rasa and Stuffed in Chennai and Bengaluru. It runs other private labels including Homely, Breakfast Express, and Goodness Kitchen on its food delivery platform.
Through its quick-commerce vertical Instamart, the company delivers groceries and items of daily needs like milk, bread and other items on a pre-subscription model basis to customers.
