Swiggy Embezzled By Employee: Food delivery platform Swiggy, which is preparing for an IPO, revealed that a former junior employee allegedly embezzled over Rs 33 crore from one of its subsidiaries. Reports state that Swiggy launched an investigation with an external team and has filed a legal complaint against the employee, whose name was not mentioned in the company’s 2023-24 annual report.
Swiggy’s annual report revealed that a former junior employee embezzled Rs 326.76 million from one of its subsidiaries over previous periods. Following the investigation, the company recorded this amount as an expense for the financial year ending March 31, 2024.
Fraud Sparks Governance Concerns Ahead of $1.25 Billion IPO
The large-scale embezzlement by a junior employee raises concerns about corporate governance at the company. Swiggy filed its IPO draft documents confidentially in April and aims to raise up to Rs 3,750 crore (about $450 million) through a new issuance and up to Rs 6,664 crore (around $800 million) via an offer-for-sale (OFS), totaling $1.25 billion.
Swiggy Reduces Losses by 44% In FY24, Revenue Up 36%
Swiggy reported a net loss of Rs 2,350 crore for the last fiscal year (FY24), but this is a 44% decrease from Rs 4,179 crore in FY23. The company’s revenue grew by 36% to Rs 11,247 crore in FY24, up from Rs 8,265 crore the previous year. Swiggy’s gross order value (GOV) reached $4.2 billion, a 26% increase year-on-year, with about 14.3 million monthly active users. The FY24 report notes improved profitability due to reduced investment in Instamart and continued business growth.
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