Ex-employee shocks Swiggy with ₹33 crore fraud
Swiggy, the Bengaluru-based food delivery giant, has reported an embezzlement case involving a former junior employee. The company's annual report for the fiscal year (FY) 2023-24 reveals that the individual misappropriated funds amounting to ₹33 crore over "past periods." Following this discovery, Swiggy has initiated an external investigation and lodged a legal complaint against the ex-staffer. The company has not yet revealed details on how the fraud was committed.
Financial performance amid embezzlement case
Despite the embezzlement case, Swiggy has shown significant financial growth. The company's revenue rose by 36% to ₹11,247 crore in FY24, and it managed to reduce its losses by 44%, from ₹4,179 crore to ₹2,350 crore. This improvement was achieved through cost-cutting measures including an 8% reduction in overall expenditure from ₹2,501 crore in FY23 to ₹1,851 crore in FY24, and a decrease in promotional activities.
Market position and IPO plans
In the food delivery industry, Swiggy holds a 43% market share based on gross order value (GOV), trailing behind its competitor Zomato's 57% share. Despite this, the company has seen an increase in demand with approximately 14 million users frequently using their platform. As part of its growth strategy, Swiggy is preparing for an initial public offering (IPO) where it aims to raise up to ₹3,750 crore through a fresh issue and up to ₹6,664 crore as an offer-for-sale component.
