Swiggy discloses Rs 33 crore fraud by ex-junior employee, takes legal route
New Delhi: IPO-bound food delivery platform Swiggy has disclosed that a former junior employee allegedly embezzled more than Rs 33 crore over a period of time from one of its subsidiaries.
As per reports, the Zomato rival initiated a probe with an external team and has filed a legal complaint against the individual whose name was withheld in its annual report for the financial year 2023-24.
“The Group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to INR 326.76 Mn over the past periods.,” the annual report mentioned.
Based on review of the facts discovered during the investigation, “the Group has recorded an expense for the aforementioned amount during the year ended March 31, 2024,” the report added.
However, such a large embezzlement from a junior employee raises further questions about corporate governance at the firm.
The company filed its initial public offering (IPO) draft documents through the confidential route In April, and plans to raise up to Rs 3,750 crore (approximately $450 million) through a new issuance and up to Rs 6,664 crore (about $800 million) via an offer-for-sale (OFS) in its $1.25 billion IPO.
Meanwhile, Swiggy posted Rs 2,350 crore in net loss in the last fiscal year (FY24). The online food delivery platform, however, reduced the net loss by 44 per cent, from Rs 4,179 crore in FY23.
The company saw its revenue grow 36 per cent to Rs 11,247 crore in FY24, from Rs 8,265 crore in the previous year. Swiggy’s gross order value (GOV) stood at $4.2 billion, up 26 per cent year-on-year (YoY) as monthly transacting users were around 14.3 million.
According to the company’s FY24 financial report, profitability has sharply improved year-on-year, “as the peak of investments in Instamart is behind us and the business continues to grow rapidly”.