Swiggy’s Fiscal Year 2023 Performance: A Study in Growth and Challenges

In an eventful fiscal year ending March 2023, online food and grocery delivery giant Swiggy witnessed substantial growth in its operating revenue, marking a 45% upsurge compared to the previous fiscal year, reaching an impressive Rs 8,265 crore. This expansion, however, was accompanied by a 15% increase in net loss, which amounted to Rs 4,179 crore. These figures showcase the company’s remarkable advancements as well as the challenges it faced during the period.

One focal point of Swiggy’s investment strategy during this period was the hefty expenditure it incurred to boost its quick-commerce vertical, Instamart. This gave rise to a significant increase in total expenses, reaching a staggering Rs 12,884 crore, representing a year-on-year rise of 34%. Notably, an intense focus on scaling up its operations led to an elevation in advertising and promotional expenses, which became Swiggy’s most significant cost head during the fiscal year.

Employee benefit expenses soared to Rs 2,130 crore from Rs 1,708 crore in the previous year, reflecting the company’s commitment to its workforce, even as it contemplated a reduction in staff by 6% to streamline operations for an upcoming Initial Public Offering (IPO) valued at $1 billion. Amid these developments, the company’s revenue profile recorded a significant increase in earnings from the sale of food and traded goods, rising by 58% to Rs 3,352 crore, signifying a robust performance in this segment.

In comparison to its key rival, Zomato, Swiggy’s revenue growth and challenges in achieving profitability amidst escalating expenses demonstrate the fervent dynamics of the online food delivery industry. Swiggy’s journey in FY23 not only underscores the company’s ambitious strides but also the resilience required to navigate the competitive landscape, marking an intriguing chapter in its corporate narrative.