Online food ordering platform Swiggy reported a 50% rise in its net loss to Rs 205 crore for FY17, according to its filing with the Registrar of Companies.
Online food ordering platform Swiggy reported a 50% rise in its net loss to Rs 205 crore for FY17, according to its filing with the Registrar of Companies. The Bundl Technologies-promoted company competes with the likes of Zomato and Foodpanda. It posted an over six-fold growth in total revenues to Rs 145 crore during the year. Service fee from restaurants and delivery fee from customers are the major sources of revenue for the food ordering and delivery business. The company reported a 120% jump in total expenses to Rs 350 crore, compared with Rs 160 crore a year ago. Employee benefit expenses at Rs 92 crore (up 73%) was one of the largest contributors to overall expenses. Swiggy has to bear huge operating costs as the company manages its own fleet of delivery boys who collect orders from its partner restaurants and deliver to end-consumer. Operating costs rose three times to Rs 144 crore and over 90% of it was contributed by delivery costs, which also rose three fold to Rs 135 crore.
Zomato Media, the food ordering arm of Zomato, reported an 80% jump in revenue to $49 million, or Rs 11.38 crore, for the year ended March 2017, according to a blog post by the company. According to a research by Kalagato, Swiggy reported a 0.35% increase in the average of value (AoV) to Rs 277 between January and September this year. Rivals Zomato witnessed a 4% increase in AOV to Rs 333 while Foodpanda reported a 0.7% increase in AOV to Rs 241. As the food tech industry moves towards consolidation, Swiggy and Zomato have initiated talks for a merger, according to media reports.