Swiggy recorded a $200 million loss ahead of potential IPO, claims report

Swiggy recorded a $200 million loss for the nine months to December 2023, according to an internal document of the company, which is looking to list on the stock market.

The SoftBank-backed company could list by the end of this year. According to a Reuters report, for the full fiscal year 2022-23 Swiggy made a loss of $500 million. But the company's lower wage payouts and cuts in marketing spending will help it trim losses for the full year 2023-24, the report quoting sources claimed. 

BT could not independently verify the report, which claims the losses stood at $207 million during April to December 2023 - the first nine months of fiscal year 2023-24.

That loss was on a revenue of $1.02 billion during the same period, compared with fiscal year 2022-23 revenue of $1.05 billion, the document showed.

India's stock market has surged 28% over the past year and many companies plan listings, but they facing discerning investors.

Digital payments firm Paytm, still loss-making, has seen its shares drop by 80% since its 2021 listing, with the company facing criticism from analysts at the time for valuing itself too high.

Swiggy's rival Zomato also saw its shares nosedive after a 2021 listing but they have surged 45% this year after posting two successive quarterly profits.

Swiggy was valued at $10.7 billion by investors in 2022. It started with meal deliveries but has gradually expanded into delivering groceries and also provides restaurant bookings.