Swiggy Reveals Rs 33 Crore Fraud by Former Junior Employee, Files Legal Complaint
Swiggy has disclosed a Rs 33 crore embezzlement case involving a former junior employee and has filed a legal complaint. This revelation comes as the company gears up for a major IPO.
A competitor of Zomato has reported a significant financial discrepancy in its annual report for the fiscal year 2023-24. The company uncovered embezzlement totaling INR 326.76 million, perpetrated by a former junior employee at one of its subsidiaries. This discovery led to the filing of a legal complaint and the recording of this amount as an expense for the year ending March 31, 2024.
This incident raises concerns about the company's corporate governance practices, particularly as it prepares for a major initial public offering (IPO). The company is aiming to raise up to INR 3,750 crore (approximately $450 million) through new issuance and an additional INR 6,664 crore (about $800 million) through an offer-for-sale, with the total IPO valued at $1.25 billion. The IPO draft documents were filed confidentially in April.
In contrast, Swiggy reported a reduced net loss of INR 2,350 crore for the fiscal year 2024, a 44 percent decrease from INR 4,179 crore in FY23. The online food delivery platform also saw a 36 percent increase in revenue, reaching INR 11,247 crore compared to INR 8,265 crore the previous year. Swiggy's gross order value (GOV) grew by 26 percent year-on-year to $4.2 billion, with monthly transacting users around 14.3 million. The company's financial report highlights significant improvements in profitability, attributing this to reduced investments in Instamart and continued business growth.
What's Your Reaction?
