India’s food delivery giant Swiggy‘s parent company Bundl Technologies saw its losses balloon up fivefold to reach ₹ 2,363 crores in FY19 from ₹397 crores in FY18, as reported by Inc42.
Amidst soaring competition from its foodtech rival Zomato, a large portion of the company’s losses were attributed to its food delivery expenses which were ₹1,593 crores and also ₹423 crores spent on salaries and wages. With orders rising to 1.4 million a day, the company also lost ₹113 crores in order cancellations.
Furthermore, it spent ₹778 crores on advertising and marketing activities this fiscal in order to keep up with its competitors. Overall, the company spent more than ₹4,491 crores during this fiscal. In terms of revenues, total revenue for the fiscal stood at ₹1,297 crores, increasing 177% over the last fiscal.
Talking about the growth and revenues, a spokesperson of Swiggy told ET, “We saw a 4.2x increase in order volumes and a 2.8x increase in operating revenue despite a higher baseline, underscoring our ability to grow in a sustainable manner over the long term. During the year, we made many strategic bets and investments in technology, brand, and supply creation that have been the drivers of category growth in Indian food delivery and will bear fruit in Swiggy’s vision,”
Earlier this year, it was reported that Swiggy has expanded to 500 cities and looking to target 100 million customers in the next 10 years across India. With foodtech space growing at a tremendous rate and fierce competition from competitors like Zomato, UberEats, and others, Swiggy can be expected to make bold bets in order to stay ahead of its competitors.