Food-delivery Unicorn Swiggy, has reported a three-fold increase in its revenue in 2017-18. It posted a revenue of ₹468 crore for the year that ended on 31st March, compared with ₹146 crore in the previous year.
During the same period however, the company’s loss nearly doubled to ₹397 crore from ₹205 crore in the previous year. This is primarily because the company spent heavily on getting an edge over its rivals Zomato and UberEats.
In a report filed with the Registrar of Companies, the company said that it is taking measures to cut down costs, however, the company did not reveal what it’s doing as a part of cost-cutting measure. In its filing, the company said, “The directors of the company are taking all effective steps to increase the revenue and reduce the operating cost of the company. Your directors are confident that the company will grow and prosper in the coming years.”
According to a report from RedSeer Consulting, Bangalore-based Swiggy is currently leading the Indian food-tech market with around 35-38% market share, followed by Zomato at around 25-30% market share.
Both the companies are spending heavily on offering discount and low-cost deliveries in order to get an edge over each other. This requires both the companies to keep raising huge capital at regular intervals to win this battle. Zomato has fared well though, considering there has been no major fund-raise by the company for quite some time and it has achieved significant revenue numbers while consistently reducing losses.
Shedding more light on its financials, the Swiggy spokesperson said that in the year 2017-18, the company was focused on delivering “exceptional value” to users, while investing significantly for the future and improving operational efficiencies. She also added that the company will continue to double down on the growth and expand to more cities and keep experimenting with innovative ways to offer more convenience to consumers.
Swiggy was founded by Sriharsha Majety and Nandan Reddy, along with ex-Myntra developer Rahul Jaimini, and started its operations in August 2014. Till date, the company has raised over $465 million, most recent being $210 million funding earlier this year at a valuation of over $1 billion. The startup is reportedly in talks with Naspers to raise around $600 million funding round.
He has been a technology writer since more than five years. At The Tech Portal, he covers gadgets, startups and the good and bad of tech.