Swiggy revenue drops 26% to Rs 2,547 crore for FY21 amid Covid restrictions

Mumbai: Food delivery giant Swiggy saw its consolidated operating revenue drop 26.6% year-on-year to Rs 2,547 crore for the fiscal year ending March 2021, even as the he company was diversifying beyond food to grow its fast-paced commerce business. Its net losses shrank nearly 59% from a year earlier to Rs 1,616 crore as the food delivery platform weathered the first year of the pandemic.

In a regulatory filing from the business intelligence platform, Tofler, Swiggy said Covid-induced lockdowns, restrictions and multiple emergencies impacted the company’s performance during the financial year. 21.

“This, coupled with a general fear of contracting the virus, has resulted in a significant reduction in demand for food delivery,” the company said in the filing.

However, the Bengaluru-based company, which raised $10.7 billion in new capital last month, added that its business had seen a strong recovery throughout the year.

Total orders in March 2021 on Swiggy were up 20% from the March 2020 level. The company attributes the improvement to a focus on customer acquisition and retention, as well as improved customer service. offer, among others.

In the same financial year, rival Zomato’s revenue had also fallen nearly 25% year-on-year to Rs 1,994 crore and losses narrowed to Rs 812 crore in FY21 .

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Swiggy said that despite declining revenue, its contribution margin per order improved 150% year-over-year. This is part of a larger trend in the food delivery industry in 2020 to reduce discounts to acquire customers, increase delivery costs as well as increase average order value. Both delivery platforms resumed their aggressive delivery practices in July 2021.

Swiggy is increasingly focused on scaling its Instarmart fast-commerce vertical, for which it has earmarked $700 million. During the New Year’s rush of demand, Swiggy said orders delivered were up 62%, while gross merchandise value was up 61% from a year ago.

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