Swiggy Reveals ₹33 Crore Embezzlement by Ex-Junior Staff Member

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Food delivery giant Swiggy, in its latest financial report for 2023-24, has revealed that a former junior employee embezzled over ₹33 crore from one of its subsidiaries. The disclosure, part of Swiggy’s annual report, highlights concerns over corporate governance within the company, especially given the large scale of the fraud attributed to a lower-level employee.

Swiggy, a key competitor to Zomato, initiated an external investigation into the matter and has filed a legal complaint against the individual, whose identity has not been disclosed. According to Swiggy’s statement, “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 financial report further clarified that the company has accounted for the loss by recording the expense in its fiscal year ending March 31, 2024. While the investigation shed light on the issue, the scale of the embezzlement by a junior employee has raised concerns about the effectiveness of Swiggy’s internal controls and financial oversight.

This incident comes as Swiggy prepares for an upcoming Initial Public Offering (IPO). In April, the company confidentially filed its draft documents for the IPO, aiming to raise up to ₹3,750 crore through new issuance and ₹6,664 crore via an offer-for-sale (OFS), targeting a total of $1.25 billion.

Despite the fraud incident, Swiggy has shown significant financial improvements. The company reported a 44% reduction in its net loss for FY24, which stood at ₹2,350 crore, down from ₹4,179 crore in FY23. The platform’s revenue also increased by 36% to ₹11,247 crore from ₹8,265 crore in the previous year.

Swiggy’s gross order value (GOV) reached $4.2 billion, reflecting a 26% year-on-year growth, with around 14.3 million monthly transacting users. The company’s financial report notes improved profitability, with investments in its grocery delivery service Instamart having peaked and business growth continuing steadily.

Sources By Agencies