Swiggy spent Rs 1,581 crore on marketing, says junior employee embezzled Rs 33 crore

Swiggy in its annual report for FY23-24 reported that they have reduced spending on marketing and promotion compared to last year. The Bengaluru based company spent Rs 1,581 crore in FY24 as compared to Rs 2,501 crore last year. The food aggregator app also reported that a former junior employee embezzled Rs 33 crore over a period of time.

The company asked an “external team” to investigate the matter and filed a "legal complaint" against the former employee. The annual reports states, "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."

Swiggy is looking to raise up to Rs 3,750 crore (around $450 million) through a fresh issue and up to Rs 6,664 crore (around $800 million) as an offer-for-sale (OFS) component in its $1.25 billion IPO later this year. The food-delivery company’s revenue grew 36 percent to Rs 11,247 crore in FY24, the annual report said. It narrowed losses to 44 percent from Rs 4,179 crore to Rs 2,350 crore, as it curtailed expenses.

It spent Rs 13,947 crore in FY24, 8 percent lower than the previous year as it cut down its promotion and marketing spending from Rs 2,501 crore in FY23 to Rs 1,851 crore in FY24.

Despite the improving finances, Swiggy lagged its rival Zomato during the year. On a gross order value (GOV) basis – which totaled to around Rs 56,924 crore between the two companies in FY24 – Swiggy had a market share of 43 percent in the food delivery industry and Zomato was the market leader with a 57 percent share in FY24.