A significant blow to Swiggy’s reputation has emerged as the food delivery giant disclosed a former junior employee’s alleged embezzlement of approximately ₹33 crore (around $4 million). The revelation was made in the company’s annual report for the financial year 2023-24, released on September 4.
Investigation Underway
The embezzlement, which occurred over an extended period, has prompted Swiggy to engage an external team to conduct a thorough investigation. The company has also filed a legal complaint against the individual responsible for the financial misconduct. However, the identity of the accused remains undisclosed.
Impact on IPO Plans
The incident has raised concerns about corporate governance within Swiggy, particularly as the company prepares for a highly anticipated initial public offering (IPO). The IPO is expected to raise between ₹10,414 crore (approximately $1.25 billion) and ₹3,750 crore (around $450 million) through new equity and an offer for sale.
Financial Performance
Despite the setback, Swiggy reported a significant improvement in its financial performance. Net losses decreased from ₹4,179 crore in the previous fiscal year to ₹2,350 crore in FY24. Additionally, the company’s revenue surged by 36%, reaching ₹11,247 crore.
The embezzlement scandal comes at a critical time for Swiggy as it seeks to expand its operations and solidify its position in the competitive food delivery market. The company will need to address the concerns raised by investors and customers alike to ensure a successful IPO and maintain its reputation.
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