In massive fraud, staffer swindles Swiggy of Rs 33 crore

The food delivery platform Swiggy has revealed that a former junior employee allegedly embezzled over ₹33 crore from one of its subsidiaries.

Swiggy, a competitor of Zomato, launched an investigation with an external team and filed a legal complaint against the individual whose identity was not disclosed in its annual report for the financial year 2023-24, IANS reported.

"The Group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to Rs, 32.67 over the past periods.," the annual report mentioned.

Net loss of 2,350 cr in last fiscal 

The financial report for the fiscal year 2023-24 highlights this significant fraud, prompting concerns about corporate governance. The company posted a net loss of ₹2,350 crore in the last fiscal year.

The company is preparing for its initial public offering. The IPO plans include raising  ₹10,414 crore.

Swiggy's revenue grew 36% to ₹11,247 crore in FY24, up from ₹8,265 crore the previous year. The company’s gross order value (GOV) reached $4.2 billion, marking a 26% increase year-on-year, with monthly transacting users at approximately 1.43 crore.

Profitability improves 

The financial report also noted significant improvement in profitability, attributing it to the completion of peak investments in Instamart and continued rapid business growth.

On Friday,  Swiggy announced the launch of an industry-first Incognito Mode which allows users to place orders privately across food and quick commerce, ensuring that these transactions do not appear in the app's history. Ideal for planning surprises, personal indulgences, or discreet purchases, Incognito Mode eliminates the need to delete order history manually.

(By arrangement with livemint.com)