Swiggy reports Rs 33 crore fraud by ex-employee, files legal complaint
Bengaluru-based food aggregator Swiggy disclosed that a former junior employee had embezzled Rs 33 crore over a period of time, the company said in its annual report for the financial year 2023-24, as mentioned by Moneycontrol.
The report states that IPO-bound Swiggy engaged an external team to probe the incident and has lodged a legal complaint against the ex-employee.
Moneycontrol quoted the company as saying, “The group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to Rs 326.76 million over the past periods.”
“Based on review of the facts discovered during the investigation, the group has recorded an expense for the aforementioned amount during the year ended March 31, 2024,” the company added.
Swiggy IPO filing
The company filed its initial public offering (IPO) draft documents through the confidential route on April 26. Swiggy aims to raise up to Rs 3,750 crore (approximately $450 million) through a new issuance and up to Rs 6,664 crore (about $800 million) via an offer-for-sale (OFS) in its $1.25 billion IPO scheduled for later this year.
According to its annual report, the food delivery firm saw a 36 per cent increase in revenue, reaching Rs 11,247 crore in FY24. It also managed to narrow its losses by 44 per cent to Rs 2,350 crore from Rs 4,179 crore, by cutting back on expenses.
In FY24, Swiggy’s total expenditure was Rs 13,947 crore, marking an 8 per cent decrease from the previous year, primarily due to reduced spending on promotion and marketing, which fell from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24.
Despite these financial improvements, Swiggy fell behind its competitor Zomato. In terms of gross order value (GOV), which amounted to approximately Rs 56,924 crore for both companies in FY24, Swiggy held a 43 per cent market share in the food delivery sector, while Zomato led with a 57 per cent share.
First Published: Sep 06 2024 | 12:26 PM IST