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Swiggy makes a comeback with Rs. 5,700 crore revenue in FY22

BNE News Desk


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Bangalore: India’s largest privately valued food and grocery delivery firm Swiggy made a strong comeback with revenue crossing Rs. 5,700 crores in Financial Year 2022.

The firm has witnessed 27 percent dip in its scale during Financial Year 2021. In 2022, the firms revenue grew over two fold.

Swiggy’s revenue from operations (gross revenue) spiked 2.2X to Rs 5,705 crore during the fiscal year ending March 2022 as opposed to Rs 2,547 crore in FY21, according to its annual financial statement with the Registrar of Companies (RoC).

The company primarily generates revenue by providing online platform services to partner merchants (including restaurant and grocery merchants and delivery partners), advertisement services, sale of food and traded goods, subscriptions, and other platform services.

Collection from rendering platform services grew 83.3 percent to Rs 3,444 crore during FY22 from Rs 1,879 crore in FY21. Unlike FY21, it has not given revenue breakup from services in the last fiscal.

Sales of grocery and Fast Moving Consumer Goods products turned out to be the second largest revenue generator during the last fiscal and collections from the same shot up 3.9X to Rs 2,036 crore in FY22 from Rs 517 crore in FY21.

Besides being an online ordering platform, Swiggy also operates its own network of cloud kitchen labels including The Bowl Company, Goodness Kitchen, Breakfast Express, and Homely. The sale of food from these brands remained flat at Rs 88 crore during FY22. Significantly, the firm had downscaled its cloud kitchen business in the past two fiscal years.

Swiggy also earned Rs 415 crore as other non-operating income (interest income) which took its total revenue to Rs 6,120 crore in FY22.

Swiggy has been ramping up its grocery play: Swiggy’s Instamart competing fiercely against Zepto and BlinkIt. As a result, the cost of product procurement shot up 4X to Rs 2,268 crore in FY22 from Rs 570 crore in FY21. Meanwhile, its advertising and promotional expenses blew 4X to hit Rs 1,848.7 crore during the last fiscal year (FY22).

Since its expenses outpaced its operating scale, Swiggy’s annual losses grew at a similar pace (2.2X) to Rs 3,629 crore in FY22 against Rs 1,617 crore in the preceding fiscal year. Cash outflows from operations stood at Rs 3,900 crore during the last fiscal year.

As one of the startups that are effectively economy-wide bets, Swiggy has the added advantage of being privately held, unlike its key competitor, Zomato. That advantage is twofold, in that it allows it to consider strategic moves and their outcomes without the glare of media attention.

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BNE News Desk