Swiggy, the leading Indian company, to reduce 400 job positions before anticipated IPO in 2021

India’s Swiggy to cut another 400 jobs ahead of IPO later this yearIndian food delivery startup Swiggy is cutting about 400 jobs, or nearly 7% of its workforce, as the startup seeks to bring further improvements to its finances ahead of a planned IPO later this year. This is the second round of layoff at the Bengaluru-headquartered startup, which cut just as many jobs early last year. The move comes as Swiggy attempts to further improve its finances. Though its food delivery business is profitable, the startup is not profitable at a group level. Zomato, Swiggy’s chief rival, became profitable last year.

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.

Avatar photo
Zara Khan

Zara Khan is a seasoned investigative journalist with a focus on social justice issues. She has won numerous awards for her groundbreaking reporting and has a reputation for fearlessly exposing wrongdoing.

Articles: 553

Leave a Reply

Your email address will not be published. Required fields are marked *