You know all of those discounts that Swiggy has been offering – 50% off momos, 60% off for new users and others? Well turns out, the wealthy private equity investors have been footing the bill. Swiggy had to raise Rs.10,000 crores in the last 5 years just so they can clock in Rs.4,500 crores in revenues (also known as gross merchandise value). Pretty mind-numbing!
Here is a look at the yearly revenue as measured by gross merchandise value (GMV) and the amount of funding they have raised over the last 5 years.
These figures represent just the GMV, or the total order value. What part of this is the consideration that is paid out to the restaurants actually serving food is unclear. But it is safe to say that their revenue is probably a small fraction of this figure.
Moving on, while revenue grew by about 120X, the value of the business grew by 42 times in the last 5 years.
The promoters ran 9 rounds of fund-raising Series A, Series B and all the way until Series I. All this fundraising significantly diluted the shareholding of the promoters, but hey, at least they are making 6 times more money than they were making 5 years ago. We can’t say that about ourselves now, can we? Or should I only speak for myself? 🙂
The biggest shareholding promoter Sriharsha Majety holds about 5% of the business. Here are the PE/VC firms who really own Swiggy today. I mean, really, really.
So, if you are thinking about launching a competition to Swiggy, this is what it will take – Rs.10,000 crores.