Former junior Swiggy employee embezzled ₹33 crore, investigation launched

Swiggy is using an external team to investigate the case and has also filed a legal complaint against the former junior employee who made off with ₹33 crore

Published on: Sep 6, 2024, 10:50:23 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

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One of Swiggy's former junior employees embezzled ₹33 crore from the company, according to a Moneycontrol article that cited the food delivery major's 2023-24 annual report.

Gig workers prepare to deliver orders outside Swiggy's grocery warehouse at a market area in New Delhi, India, May 6, 2024. (Priyanshu Singh/Reuters)

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This led the company to commission an “external team” to investigate the matter. Swiggy also filed a "legal complaint" against the former employee behind this.

"The Group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to ₹326.76 million over the past periods..," Swiggy's annual report released on September 4, read.

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This is at a time when the company filed its draft papers on April 26 for an initial public offering (IPO) for raising up to ₹3,750 crore through a fresh issue and up to ₹6,664 crore as an offer-for-sale (OFS) component in its $1.25 billion IPO.

How did Swiggy perform financially?

Swiggy's revenue grew 36% to ₹11,247 crore and losses fell by 44% from to ₹2,350 crore, according to the reprot, which attributed the increase in profitability to the investment in Instamart.

The company's expenses were ₹13,947 crore, which is 8% lower than the previous year, due to reduced promotion and marketing spending from ₹2,501 crore in the previous year to ₹1,851 crore in 2023-24.

However, Swiggy with a 43% market share still lagged behind rival Zomato's 57% market share in terms of gross order value (GOV) basis.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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