Swiggy’s latest draft red herring prospectus (DRHP) shows that despite a 36% surge in first-quarter revenue, the company’s losses swelled to ₹611 crore.
What Happened: Swiggy’s losses widened 8%, reaching ₹611 crore in Q1 from ₹564 crore a year earlier due to escalating expenses. The company’s expenditure for the quarter stood at ₹3,908 crore, marking a 27% increase from ₹3,073 crore spent during the corresponding period last fiscal year.
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The revenue from operations for the company was ₹3,222.2 crore in the June quarter, a 35% jump from ₹2,389.8 crore recorded in the same period of the previous year. In contrast, its listed competitor Zomato posted a revenue of ₹4,206 crore (74% growth year-on-year) and generated a profit of ₹253 crore in Q1.
Despite lagging behind Zomato, Swiggy has narrowed the gap ahead of its anticipated stock market debut later this year. Swiggy Instamart, the company’s quick-commerce division, reported a Q1 revenue of ₹374 crore, an increase of 108% from a year ago.
Swiggy submitted its first updated draft filing with the Securities and Exchange Board of India (SEBI) on September 26. The IPO has a fresh issue component of ₹3,750 crore and an offer-for-sale part of around ₹6,664 crore, amounting to a total of ₹10,414 crore
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