Indian food delivery giant Swiggy has announced plans to cut approximately 400 jobs, which amounts to about 7% of its workforce. The Bengaluru-based startup is making this move in an effort to strengthen its financial standing as it prepares for an initial public offering (IPO) later this year.
This is actually the second round of layoffs for Swiggy, as the company had to make similar cuts to its workforce early last year. This latest round comes as the startup strives to further enhance its financial situation. While Swiggy’s food delivery service is currently profitable, the entire company is not yet profitable. In comparison, its main competitor Zomato achieved profitability last year.
As Swiggy gears up for its IPO, analysts and investors have emphasized that it will be closely compared to Zomato and will need to outperform its rival in various areas in order to secure a good valuation.
When asked for comment, Swiggy did not immediately respond. However, the Indian newspaper ET was the first to report on the planned job cuts.
