Chennai: Food delivery businesses bounced back in financial year 2021-22 in terms of revenues.
Hit by the pandemic, food tech majors Zomato and Swiggy saw their businesses shrinking over 20 per cent during FY21. Both the companies bounced back in FY22, as per the data of Entrackr.
After a decline of 24 per cent in FY21, Zomato’s gross revenue grew over two times to ₹4,192 crore during the fiscal year ending March 2022.
Swiggy, whose business also dipped 27 per cent in financial year 2020-21, managed to grow 2.2 times to ₹5,705 crore during financial year 2021-22.
Both Zomato and Swiggy primarily garnered revenue from online platform services such as sale of food, advertisement, subscription, delivery facilitation to users, restaurant partners and the delivery partners.
Zomato and Swiggy made around 87 per cent and 60 per cent of their operating revenue from food delivery and other platform services.
Collections of Zomato from the same ballooned two times to ₹3,651 crore whereas Swiggy reported over 83 per cent growth to ₹3,444 crore during financial year 2021-22.
The food delivery companies, however, also saw their expenses increasing faster than revenues, leading to widening of losses.
Total costs of Swiggy went up to ₹9,574 crore and that of Zomato rose to ₹6,205 crore.
Outsourcing support costs including delivery and manpower related charges was the largest cost for both the companies. This cost of Zomato shot up 3.4 times to ₹1,986.4 crore in financial year 2021-22, and for Swi-ggy the same cost blew up 2.3 times to ₹2,350 crore.
Zomato’s spending on employee benefits grew 2.2 times to ₹1,633 crore while Swiggy’s cost on the same went up 57.4 per cent to ₹1,708 crore during the fiscal year ending March 2022. Consequently, the losses of Zomato and Swi-ggy spiked 49.8 per cent and 124.4 per cent respectively to ₹1,222 crore and ₹3,629 crore during financial year 2021-22 as oppos-ed to ₹816 crore and ₹1,617 crore in fiscal 2021-22....