Following the success of Zomato’s stock listing, SoftBank’s Masayoshi Son feels that if Swiggy decides to go public at some time, it will add some excitement to the market.
“If they (Swiggy) go public, I believe that we will be able to see good returns from here too. That’s our expectation,” SoftBank CEO Son said in an earnings presentation, on Tuesday. Swiggy was reportedly valued at over $5 billion as SoftBank led a $1.25 billion investment.
Son noted that Swiggy along with food, delivers other items too and it has led to an increase in “the number of orders per day by about 2.5 times in one year” and “revenue has increased by 2.8 times in one year.”He did not, however, provide the numbers for Swiggy’s quarterly performance (April-June).
However, following the IPO, the net loss for the second quarter of the current fiscal year increased significantly. The company’s net loss increased to Rs 356 crore from Rs 99.8 crore in the previous fiscal year’s equivalent quarter. During the same time, the food aggregator’s income was Rs 844.4 crore, while total costs were Rs 1,259.7 crore.
This is primarily attributable to non-cash ESOP expenditures, which grew significantly in Q1 FY22 as a result of considerable ESOP grants issued in the quarter in connection with the establishment of a new ESOP 2021 plan. According to a blog post signed by top Zomato executives, “this disparity between reported profit/loss and Adjusted EBITDA will persist going ahead.”
Zomato competes with Swiggy in India, and both companies are funded by SoftBank and Prosus. Swiggy raised $1.25 billion in a fresh funding round last month.