Swiggy launches investigation into Rs.33 crore scam involving former employee

Swiggy launches investigation into ₹33 crore scam involving former employee

Swiggy launches investigation into ₹33 crore scam involving former employee

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The food delivery service Swiggy has initiated an investigation into a ₹33 crore fraud perpetrated by a former junior employee. The company, which is preparing for its initial public offering (IPO), has not disclosed the identity of the individual involved.

The fraudulent activities occurred over time through one of Swiggy’s subsidiaries.

This information was disclosed in Swiggy’s financial report for the fiscal year 2023-24.

“The Group has identified embezzlement of funds amounting to ₹326.76 million by a former junior employee in one of its subsidiaries over previous periods. Following a review of the findings from the investigation, the Group has recorded an expense for this amount for the year ending March 31, 2024,” the report states.

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The company has filed criminal charges against the employee and has engaged an external team to conduct a thorough investigation into the fraudulent actions, according to sources.

In the previous fiscal year (FY24), Swiggy reported a net loss of ₹2,350 crore.

The company aims for a valuation of around $15 billion for its upcoming IPO, with plans to raise between $1 billion and $1.2 billion.

Over the years, Swiggy has emerged as a well-recognized name throughout the country, celebrated for its swift delivery services. The platform offers appealing features, including the absence of a minimum order requirement.

Swiggy is recognized as the leading online food delivery service in key cities such as Mumbai, Delhi, Kolkata, Bangalore, Chennai, and Gujarat.

With more than 10 million downloads on Google Play in India, it has established itself as the foremost app for online food ordering.

Further information from the online food delivery service is anticipated.

The company reported an impressive 36 percent growth in revenue, reaching ₹ 11,247 crore in FY24, up from ₹ 8,265 crore the previous year. Additionally, Swiggy’s gross order value (GOV) experienced a significant increase, reaching $4.2 billion.

The online food ordering industry has seen substantial investment and innovation in recent years, with the COVID-19 pandemic prompting entrepreneurs and investors in the online delivery space to explore new business opportunities.

Founded in 2014, the company has thrived in a competitive landscape, particularly against its main competitor, Zomato, successfully capturing a significant market share in various areas.

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