Swiggy’s losses indicates the heavy cash burn and poor unit economics in food delivery and technology start-ups.
- Food delivery start-up Swiggy (Bundl Technologies Pvt. Ltd) posted a near 65-fold increase in losses for the fiscal year ended March 2016.
- It indicates heavy cash burn and poor unit economics in food start-ups.
- Swiggy’s revenue rose to Rs23.59 crore for the year ended 31 March from Rs11.59 lakh a year earlier. Of this, Rs20.14 crore was revenue from operations and the rest from other income.
- Losses bulged to Rs137.18 crore from Rs2.12 crore in fiscal 2015.
- Total expenses stood at Rs160.77 crore, implying that Swiggy burnt about Rs13 crore per month in FY16.
- Swiggy and Zomato Media Pvt. Ltd are two of the largest companies in the food delivery space.
- Some food start-ups such as Dazo and Eatlo shut shop, while others were acquired.
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