Swiggy posts wider losses in FY20; spike of 128 pc in revenue and improved margin per order
Foodtech unicornhas posted losses of Rs 3,920.4 crore for the year ending March 31, 2020, on the back of increased expenses, as well as a pandemic-induced lockdown, which hit the online food delivery business in March. In the previous year, Swiggy's losses stood at Rs 2,345 crore.
The company's consolidated revenues, however, jumped about 128 percent to Rs 2,955.6 crore in FY20 from Rs 1,297.3 crore in FY19. Total expenses rose 87.6 percent to Rs 6,864 crore, as per the Registrar of Companies (RoC) filings of the Bengaluru-based Bundl Technologies, which owns Swiggy.
In FY20, Swiggy merged its Mumbai-based intracity premium food delivery service Scootsy into its app, and invested in ready-to-cook food startup Fingerlix, whereby it acquired 26.85 percent equity shares in Fingerlix’s parent company Maverix Platforms.
The foodtech unicorn had also acquired hyperlocal delivery startup Supr Daily during the financial year.
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In its filings, Swiggy added that its business grew by 85 percent in FY20, and that it added more than 100K restaurants with an active delivery fleet of over 200K.
"We also widened our reach across the country by launching 405 new cities," it added.
The filing read that "As our company continued to strengthen its market leadership, the contribution margins improved significantly with operational efficiency, increased scale, and reduction in defects. The contribution margin per order improved by 73 percent y-o-y; whereas the PBT losses reduced by 64ppt of revenues y-o-y."
Besides this, Swiggy also clarified that the company will continue to closely monitor any material changes to future economic conditions and the directors are optimistic that they will be able to generate profits in the upcoming years and there is no change in the nature of business.
Recently, Swiggy's rival posted its financials for FY20 ahead of its IPO plans this year. Zomato posted a wider loss of Rs 2,385.6 crore and doubled consolidated revenues of Rs 2,742.7 crore.also