Indian food delivery giant Swiggy posted a loss of $200 million for the nine months to December 2023, according to an internal document of the company, which is seeking to list on the stock market.
The SoftBank-backed company could list before the end of this year, sources previously told Reuters. India’s stock market is booming even as domestic and foreign investors have become more wary of IPOs by Indian startups amid concerns about unrealistically high valuations of companies still making losses.
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For the full fiscal year 2022-23, Swiggy made a loss of 41.8 billion rupees ($500 million), according to the document. But the company’s lower wage payments and reductions in marketing expenses will help it reduce losses for the full year 2023-24, said a source with direct knowledge of the matter, who did not wish to be identified.
The document showed that losses were 17.3 billion rupees $207 million during April to December 2023 – the first nine months of the fiscal year 2023-24.
That loss was on revenue of $1.02 billion during the same period, compared with fiscal year 2022-23 revenue of $1.05 billion, the document showed.
Swiggy did not respond to queries seeking comment.
India’s stock market has grown by 28% over the past year and many companies are planning listings, but they face prudent investors.
Still-losing digital payments firm Paytm has seen its shares drop 80% since its 2021 listing, with the company facing criticism from analysts at the time for valuing itself too high.
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Swiggy’s rival Zomato also saw its shares decline after a 2021 listing, but they are up 45% this year after posting two consecutive quarterly profits.
Swiggy has been valued at $10.7 billion by investors in 2022. It started with food deliveries but gradually expanded to grocery delivery and also caters to restaurants.lso
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Published: 28 Mar 2024, 22:52 IST
(tagsTo Translate)Swiggy