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Swiggy Lost $ 200 Million Ahead of IPO Plans

CIO Insider Team | Friday, 29 March, 2024

Due to its plans to go public, the Indian delivery company Swiggy lost $200 million in the nine months ending in December 2023.

The Indian stock marketing undergoing growth, however, it has been witnessing a distaste from both domestic and international investors when startups are about to go for an Initial Public Offering (IPO) from concerns over inflated values of businesses which are undergoing monetary loss.

In Swiggy's case, the foodtech major lost about Rs.41.8 billion ($500 million) in just a fiscal year 2022–2023. It plans to make up for the loss by decreasing labor payouts and marketing budget reductions.

On a precise note, most reports recorded saying that the losses were Rs.17.3 billion or $207 million for the first nine months during the fiscal year 2023–2024, or April to December 2023.

In revenue, the loss incurred was $1.02 billion during that same period, which was $1.05 billion in revenue in comparison to the fiscal year 2022–2023.

Additionally, Indian stock market has experienced 28 percent growth in the past year, evoking interest among many companies to list although they have to deal with choosy investors.

India's stock market is expanding, but both domestic and foreign investors are becoming less enthusiastic about Indian startups' initial public offerings (IPOs) due to worries about the inflated values of businesses that are still losing money.

In the case of Payment, the digital payments major, which went public in 2021, continues to lose shares which is said to have lost about 80 percent now. It also faced criticism from analysts who pointed out at the company's overvaluation of itself.

The foodtech major's rival, Zomato, suffered a similar decline in share price on its 2021 listing, but this year they have increased by 45 percent following two quarters of earnings.

Investors valued Swiggy at $10.7 billion in 2022. Initially offering food delivery, it has progressively grown to include grocery delivery and restaurant reservations.Additionally

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