Two pieces of news have taken the food delivery segment by storm in the beginning of the year. One is about Swiggy’s widening losses. The other is about Zomato co-founder and Chief Technology officer (CTO) Gunjan Patidar’s resignation on 2 January, which led to its share price tumbling a day later on 3 January.
Food and grocery delivery platform Swiggy reported a widening of its net loss to Rs 3,628.9 crore for FY22, which means its losses have doubled. The company had posted a net loss of Rs 1,616.9 crore in the previous fiscal, media reports said.
According to the financial data accessed by the business intelligence platform Tofler, the company’s revenue from operations stood at Rs 5,704.9 crore for the fiscal ended March 2022 against Rs 2,546.9 crore in the year-ago period.
On the other hand, Patidar was one of the first few employees of Zomato and built the core tech systems for Zomato. The reasons for his resignation were not immediately known. Before Patidar, three other co-founders had quit – Pankaj Chaddhah, Gaurav Gupta, and Mohit Gupta.
Zomato’s share price declined 5% in BSE in morning trade after Patidar’s resignation. In Q2FY23, Zomato’s net loss was Rs 250.8 crore against Rs 434.9 crore in the same quarter the previous year. The company’s revenue from operations rose 62.20% to Rs 1,661.3 crore, MoneyControl reported.
Swiggy was in news in the year-end, after it delivered 3.5 lakh biryani and 2.5 lakh pizzas across the country on the last day of 2022.