IPO-Bound Swiggy Expands Into Lakshadweep Amid Layoff Plan

IPO-Bound Swiggy Expands Into Lakshadweep Amid Layoff Plan

SUMMARY

With this expansion, Swiggy aims to empower local culinary talents and enrich the experience of visitors

The announcement comes on the same day when Inc42 reported that the foodtech giant is looking to fire 400 staff, or around 6% of its total workforce, as part of a corporate realignment process

Swiggy also claims to have become the first online food delivery platform to enter the union territory

Bengaluru-based Swiggy has expanded its food delivery services to Agatti island city of Lakshadweep, the union territory that rose to fame after Prime Minister Narendra Modi’s visit earlier this month.

With this expansion, Swiggy aims to empower local culinary talents and enrich the experience of visitors, the company said in a statement on Thursday (January 25).

The announcement comes on the same day when Inc42 reported that the foodtech giant is looking to fire 400 staff, or around 6% of its total workforce, as part of a corporate realignment process. The layoffs may impact employees across departments, but the tech and customer support teams took the hardest hit.

Swiggy also claims to have become the first online food delivery platform to enter Lakshadweep. 

The statement further said that the deliveries will be solely made on bicycles. The company has also announced special launch discounts of 50% up to INR 100 on first orders. 

“We are excited to partner with local restaurants and support them in expanding their businesses, while also creating income opportunities for the local youth. In the future, we look forward to gradually deepening our presence in Lakshadweep,” said Sidharth Bhakoo, national business head, food marketplace, Swiggy.

Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, Rahul Jaimini, Swiggy has raised $3.6 Bn funding to date.

Last year, Swiggy’s cofounder and CEO Sriharsha Majety said its food delivery business achieved profitability as of March 2023. “As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in all corporate costs; excluding employee stock option costs).”

The company posted a consolidated loss of INR 3,629 Cr in FY22 and revenue of INR 5,704.9 Cr. Of this, INR 3,444.4 Cr came from the food delivery business.

Swiggy is also gearing up to list itself on the stock exchanges, in what is being called the biggest IPO by an internet company with an issue size of $1 Bn (INR 8,300 Cr).

The company has also seen many high-profile exits. Key people, including Karthik Gurumurthy (senior vice president and head of Swiggy Instamart), Dale Vaz (CTO), Anuj Rathi (SVP, central revenue and growth ), Ashish Lingamneni (VP, marketing) and Dineout cofounder Vivek Kapoor, were among others to have left the company.

This year is set to witness IPOs from around 10 tech startups, but all eyes are on Swiggy and Ola Electric as their offerings are already creating a buzz in the market.

Swiggy’s IPO is anticipated to take place in mid-2024.

 

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