Swiggy reports Rs 33 Cr 'embezzlement' by former employee
Swiggy in its annual report said the 'embezzlement' was identified during FY2024, specifically involving funds in Scootsy, one of its subsidiaries. The company has taken legal recourse in response to the incident.
A former employee of IPO-bound has been found to have embezzled Rs 33 crore (Rs 326.76 million) between August 2021 and February 2022, according to the company’s annual report.
The embezzlement was identified by the ecommerce firm during the fiscal year 2024, specifically involving funds in , one of Swiggy’s subsidiaries.
The news was first reported by Money Control.
According to the company’s annual report accessed by YourStory, Swiggy has taken appropriate action in response to the incident and has strengthened its internal controls and policies to "avoid recurrence of such instances".
“The company, during fiscal 2024, identified embezzlement of funds in Scootsy, one of our subsidiaries, by a former employee amounting to Rs 326.76 million during the period August 2021 to February 2022. The perpetrator is no longer employed with the company, and the company has taken appropriate action and has strengthened our internal controls and policies to avoid recurrence of such instances,” read the report.
YourStory has reached out to Swiggy for comments.
Swiggy acquired Mumbai-based on-demand delivery platform Scootsy in 2018 through an all-cash transaction valued at approximately Rs 50 crore. The company then integrated Scootsy into its core food aggregation and delivery operations in 2020.
The report further states that Swiggy has taken legal action against the perpetrator and accomplices, in line with its zero-tolerance policy, and is seeking recovery of the embezzled funds.
“The company has also taken requisite legal recourse for penal action on the perpetrator and his accomplices in line with the zero-tolerance policy of the company towards any unethical practices and recovery of the embezzled funds,” it said.
YourStory had earlier reported that Swiggy planned to raise $1.3 billion through its public listing, with the draft red herring prospectus scheduled for filing in September.
According to the company’s annual report, the -backed firm reported an operating revenue of Rs 11,247 crore for FY24, marking a 36% increase from Rs 8,264 crore in FY23.
Edited by Swetha Kannan
MOST VIEWED STORIES
