Swiggy Losses Double While Revenue Crosses Rs. 5700 Cr In FY22

Swiggy Revenue

Swiggy witnessed a lag in its growth during FY21. The market seemed gloomy but that didn’t discourage Swiggy to scale its operations. It upgraded its services and with its most alluring feature, Swiggy revenue jumped to Rs.5,705 crore. And that alluring feature was none other than “Swiggy One” where you can get multiple benefits with just Rs.149 (for 3 months).  However, this is just one side of the moon. The dark side is yet to be seen! What’s that? You may ask. Swiggy losses doubled while revenue crossed Rs.5,700 crore in FY22. Why? You may ask. Not just that but its valuation was also reduced to half! Really? Yes. You will get to know all of it in this write-up.

Swiggy Revenue


Keep reading!

Swiggy Revenue breakdown

First of all, let’s look at the bright side of the company. In FY22, Swiggy earned revenue of Rs.5,705 crore. Do you know how much it earned last year (FY21)? Rs.2,547 crore. It is time to compare the Swiggy revenue of the last two fiscal years.

Swiggy Revenue SourcesFY 22 (Financial Year 2022)FY21 (Financial Year 2021)
Revenue from platform servicesRs.3,444 croreRs.1,879 crore
Sale of grocery & FMCG productsRs.2,036 croreRs.517 crore
Sale of foodRs.88 croreRs.83 crore
Other operating revenueRs.138 croreRs.67 crore
Total RevenueRs.5,705 croreRs.2,547 crore
Swiggy Revenue Sources

As you can see from the table, Swiggy revenue increased in this fiscal year. The revenue from platform services generated the highest chunk of the revenue. The sale of grocery and FMCG products i.e. from Swiggy Instamart is a second contributor to Swiggy revenue. It is quite fascinating! Isn’t it? But there is an intense dark side to this scenario. Expenses! You will get to know about it in the next section.


On the expense side, the outsourcing support cost turned out to be the largest expenditure of the company. As per the analysts, the reason behind this is the rising cost of outsourced labor and the establishment of dark stores. As you have seen in the business model of Swiggy, it has to spend a lot on marketing and advertisements too. Apart from that it spends on numerous segments. Now look at the following expenses that led to the losses for the company “Swiggy.”

ExpensesFY 22 (Financial Year 2022)FY21 (Financial Year 2021)
Outsourcing Support CostRs.2,350 croreRs.1,031 crore
Employee Benefit ExpensesRs.1,708 croreRs.1,085 crore
Cost of Materials ConsumedRs.2,268 croreRs.570 crore
Advertising & Promotional ExpensesRs.1,848.7 croreRs.461 crore
Communication & Technology CostRs.330 croreRs.221 crore
Loss on Order Cancellation and OthersRs.156.4 croreRs.124.5 crore
Other ExpensesRs.912.8 croreRs.646.4 crore
Swiggy’s Expenses

Now, you might have understood why Swiggy is drowning in deep losses despite earning massive revenue. However, the company looks at its expenses as potent investments that will contribute to a significant amount of revenue in the future. 

Financials of Swiggy

The financials of the company Swiggy is summarized in the following table-

Swiggy’s FinancialsAmount (in crores)
Market ValuationRs.45,100 crore ($5.5 billion)
Revenue EarnedRs.5,705 crore
ExpensesRs.9,574 crore
Profit/LossLoss of Rs.3,629 crore
Swiggy’s Financials

Although it earned an appreciable amount of revenue from its numerous revenue sources. But the cash outflow in various expenses crossed the threshold. This means the amount spent on expenditures exceeded the amount of revenue earned. Eventually, it continues to face a significant amount of loss.  

Future Plans of Swiggy

The online food delivery company is undergoing heated competition from its competitors like Zomato and ONDC. Therefore, it keeps on spending in numerous segments leading to improving its services. Swiggy lost its “decacorn” status too! Recently, it got a huge blow from one of its leading investors i.e. Baron Capital. They cut Swiggy’s valuation to $6.4 billion from 10.7 billion. Despite all these conditions, Swiggy is optimistic about getting profitable returns in the future!

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Published By: Supti Nandi
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