Bengaluru-based food aggregator Swiggy has revealed that a former junior employee had embezzled Rs 33 crore over a period of time, the company said in its annual report for the financial year 2023-24, as mentioned. Money control.
The report said Swiggy, which is about to go public, hired an outside team to investigate the incident and filed a legal complaint against the former employee.
Moneycontrol quoted the company as saying, “The group, during the current year, identified misappropriation of funds in one of the subsidiaries by a former junior employee amounting to Rs 326.76 crore in the recent periods.”
“Based on the review of the facts discovered during the investigation, the group has recorded an expense in the amount mentioned during the year ended March 31, 2024,” the company added.
Swiggy IPO filing
The company filed its preliminary initial public offering (IPO) documents through the confidential route on April 26. Swiggy aims to raise up to Rs 3,750 crore (about $450 million) through a fresh issue and up to Rs 6,664 crore (about $800 million) through an offer for sale (OFS) in its $1.25 billion IPO scheduled later this year.
According to its annual report, the food delivery company reported a 36% increase in revenue to Rs 11,247 crore in FY24. It also managed to reduce its losses by 44% to Rs 2,350 crore from Rs 4,179 crore by cutting expenses.
In FY24, Swiggy’s total spend stood at Rs 13,947 crore, marking a decline of 8 per cent from the previous year, primarily due to reduced promotional and marketing spend, which fell from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24.
Despite these financial improvements, Swiggy lagged behind competitor Zomato. In terms of gross order value (GOV), which stood at approximately Rs 56,924 crore for both companies in FY24, Swiggy had a 43 per cent market share in the food delivery sector, while Zomato led with a 57 per cent share.
First published: September 6, 2024 | 12:26 pm IS
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