Swiggy FY20 losses widen to Rs 3768.5 cr; co writes off Scootsy acquisition

Online food delivery platform Swiggy’s standalone losses widened to Rs 3768.5 crore for financial year 2019-20, up 60% from 2345.6 crore from last fiscal. 

Swiggy, which is operated by Bundl Technologies, recorded Rs 2,515.4 crore of standalone operating revenue, marking a 124% jump from Rs 1121.7 crores in the previous fiscal.

Service income or commissions generated from restaurants contributed 59% of the revenue while delivery fees collected from customers accounted for 22%. Advertisements or priority placement of brands on the platform, subscription fees, restaurant on-boarding charges, and sale from private labels accounted for the remaining revenue, according to regulatory filings.

The Bengaluru-based startup’s total standalone expenses nearly doubled during the fiscal to Rs 6,545 crore from Rs 3,637.6 crore in FY19. Advertising promotional expenses grew to Rs 1,034 crore in FY20 from Rs 776.2 while employee benefit costs doubled to Rs 1087.8 crore from Rs 537.2 crore last fiscal. Communication and technology expenses stood at 454.3 crore and loss on order cancellation was at Rs 261 core.

The company said it has impaired the entire investment of Rs 102.3 crore in Ant Farm-incubated hyperlocal delivery venture Scootsy, which it acquired in 2018 for Rs 37 crore. Scootsy delivered food, fashion apparel and accessories, home décor, and more in Mumbai. Post acquisition, Swiggy infused Rs 33 crore during FY 2018-19 and Rs 32 crore during the current reporting fiscal. Scootsy’s losses grew to Rs 240 crore in Fy20 from Rs 206.8 crore in the previous fiscal.

“As at March 31, 2020, the company had assessed the carrying value of the entire investment of Rs 102.3 crore based on future operational plan and projected cash flows, the entire investment has been impaired as at March 31, 2020,” it said in the filing.

Milk delivery startup SuprDaily, Swiggy’s other 100% subsidiary, posted a loss of Rs 272.2 crore during FY20. Swiggy acquired SuprDaily in September 2019 for Rs 51.5 crore. As of March 31, 2020, the company assessed the carrying value of the investment at Rs 333.5 crore for impairment; however, based on future operational plan, projected cash flows and valuation carried out by an external auditor, it decided to carry the value on its balance sheet, filings show.

Read: Swiggy scales down grocery marketplace biz to focus on Genie, Instamart

The company has classified Maverix Platform, which owns Fingerlix, as an associate company. Swiggy holds 27% in the company.

During the year under review, Swiggy added over one lakh restaurants and had an active delivery fleet of over two lakhs. The company said it widened its reach across the country by launching 405 new cities during the year. Swiggy’s contribution margin per order improved by 73% year-on-year, the company claimed.

Naspers, the largest stakeholder in Swiggy, said in its latest earnings report that the food delivery platform saw order volumes decline 73% during the April-June 2020 quarter compared to the corresponding period last year due to pandemic-induced lockdowns. Gross merchandise value (GMV) dropped 62% during the same period.