India’s Swiggy to cut another 400 jobs ahead of IPO later this year

Date:

Share post:


Indian food delivery startup Swiggy is cutting about 400 jobs, or nearly 7% of its workforce, as the startup seeks to bring further improvements to its finances ahead of a planned IPO later this year.

This is the second round of layoff at the Bengaluru-headquartered startup, which cut just as many jobs early last year.

The move comes as Swiggy attempts to further improve its finances. Though its food delivery business has been profitable for several quarters, the startup is not profitable at a group level. Zomato, Swiggy’s chief rival, became profitable last year.

Investment bankers and mutual fund investors hold the view that Swiggy will be very closely compared to Zomato by retail investors at the time of listing and needs to beat the older rival on many metrics if it desires a good valuation. Zomato

Swiggy didn’t respond to a request for comment. Indian newspaper ET first reported the layoff.

Zomato and Swiggy lead the Indian food delivery market, but in recent quarters Zomato has expanded its market share lead, according to UBS and AllianceBernstein. Zomato held over 60% of the Indian food delivery market, based on app user count, AllianceBernstein said in a note Wednesday.

swiggy zomato marketshare

Data, image: AllianceBernstein

“Post covid, Zomato has grown faster than Swiggy — both from a user base & GMV perspective driven by strong execution, wider penetration (Zomato is present in 750+ cities as compared to ~600 cities for Swiggy) and stronger content funnel,” AllianceBernstein analysts wrote.

“In the past three months, Zomato has incrementally gained ~100bps in market share in terms of monthly active users (MAUs). From a GMV perspective, Zomato holds ~54% share in food delivery as compared to Swiggy at 46% as of 1HCY23, Zomato’s food delivery GMV stood at $1.7Bn as compared to Swiggy’s $1.4Bn. Zomato has been a gainer in Tier 2+ cities as well as some Tier 1 cities — which has led to a higher MAU base for Zomato. Zomato had 58Mn annual transacting users in CY22, with food delivery segment exhibiting18.4Mn MTUs in Q2FY24.”



Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Connect with HomeHQ.ai, SOSV, Prepare 4 VC, Latham & Watkins and more at TC Early Stage 2024

We are thrilled to collaborate with some of the most influential players in the startup ecosystem to...

VC Trae Stephens says he has a bunker (and much more) in talk about Founders Fund and Anduril

Last night, for an evening hosted by StrictlyVC, this editor sat down with Trae Stephens, a former...

Waymo can now charge for robotaxi rides in LA and on San Francisco freeways

Waymo received approval Friday afternoon from the California Public Utilities Commission to operate a commercial robotaxi service...

Rabbit’s Jesse Lyu on the nature of startups: ‘Grow faster, or die faster,’ just don’t give up

Rabbit co-founder and CEO Jesse Lyu isn’t afraid of death… the death of the company, at least....

Stay up-to-date on the amount of venture dollars going to underrepresented founders

Venture capital funding has never been robust for women or Black and brown founders. Alongside Crunchbase, we’ve...

MWC 2024: Everything announced so far, including Swayy’s app to tell friends where you’ll be next

The TechCrunch team is in Barcelona this week to bring you all the action going on at...

Is there anything AI can’t do?

Welcome to Startups Weekly — your weekly recap of everything you can’t miss from the world of...

Ultraleap is bringing haptic touch to cars and VR headsets

In May 2019, Ultrahaptics and Leap Motion became Ultraleap (not to be confused with Magic Leap, which...