Food delivery partner Swiggy’s net loss jumped by 65% to Rs 3,768 crore in the financial year ended March 2020 as it remained locked in a battle with rival Zomato in the online food delivery market. However, the company has reported a 127.8 per cent jump in its revenue.
Backed by Tencent, DST Global, and others, and last valued at around $3.5 billion, Zomato’s arch-rival Swiggy saw its total income rise from Rs 1,297.3 crore in FY19 to Rs 2,955.6 crore in FY20, according to regulatory filings.
“Our company’s business grew by 85 per cent, (with) addition of over 100K restaurants with an active delivery fleet of over 200K. We also widened our reach across the country by launching 405 new cities,” the company said in its filing.
The Bengaluru-based firm’s two largest sources of revenue are its platform fee for connecting restaurants to consumers, and the delivery fee it charges to transport food orders. Its earnings also include advertisement income and selling food via its cloud kitchen-based private labels like The Bowl Company, and Homely.
Its total expenses grew by nearly 80% to Rs 6,544 crore, as it spent more across verticals like staff expense, marketing and others.
During FY20, Swiggy had merged its Mumbai-based intracity premium food delivery service Scootsy into its app and had invested in ready-to-cook food startup Fingerlix whereby it acquired 26.85 per cent equity shares in Fingerlix’s parent company Maverix Platforms. Swiggy had also acquired hyperlocal delivery startup Supr Daily during the financial year.