Indian meals supply startup Swiggy is slicing about 400 jobs, or practically 7% of its workforce, because the startup seeks to carry additional enhancements to its funds forward of a deliberate IPO later this yr.
That is the second spherical of layoff on the Bengaluru-headquartered startup, which minimize simply as many roles early final yr.
The transfer comes as Swiggy makes an attempt to additional enhance its funds. Although its meals supply enterprise has been worthwhile for a number of quarters, the startup isn’t worthwhile at a gaggle stage. Zomato, Swiggy’s chief rival, grew to become worthwhile final yr.
Funding bankers and mutual fund traders maintain the view that Swiggy might be very intently in comparison with Zomato by retail traders on the time of itemizing and must beat the older rival on many metrics if it wishes an excellent valuation.
Swiggy didn’t reply to a request for remark. Indian newspaper ET first reported the layoff.
Zomato and Swiggy lead the Indian meals supply market, however in latest quarters Zomato has expanded its market share lead, in line with UBS and AllianceBernstein. Zomato held over 60% of the Indian meals supply market, primarily based on app consumer depend, AllianceBernstein mentioned in a observe Wednesday.
Knowledge, picture: AllianceBernstein
“Publish covid, Zomato has grown sooner than Swiggy — each from a consumer base & GMV perspective pushed by robust execution, wider penetration (Zomato is current in 750+ cities as in comparison with ~600 cities for Swiggy) and stronger content material funnel,” AllianceBernstein analysts wrote.
“Prior to now three months, Zomato has incrementally gained ~100bps in market share when it comes to month-to-month lively customers (MAUs). From a GMV perspective, Zomato holds ~54% share in meals supply as in comparison with Swiggy at 46% as of 1HCY23, Zomato’s meals supply GMV stood at $1.7Bn as in comparison with Swiggy’s $1.4Bn. Zomato has been a gainer in Tier 2+ cities in addition to some Tier 1 cities — which has led to the next MAU base for Zomato. Zomato had 58Mn annual transacting customers in CY22, with meals supply section exhibiting18.4Mn MTUs in Q2FY24.”