Bengaluru-based foodtech giant Swiggy has uncovered a significant embezzlement case, with a former junior employee allegedly misappropriating approximately INR 33 crore over a period of time, as disclosed in the company’s annual report.
In response, Swiggy has engaged an external team to investigate the matter and has also filed a legal complaint against the accused individual, while the name has not been disclosed.
According to a report released on September 4, Swiggy disclosed that the embezzlement of around INR 33 crore funds was detected during the preparation of its annual report for the financial year 2023-24.
The company’s report revealed a significant embezzlement case, stating: “The Group, during the current year, identified embezzlement of funds in one of the subsidiaries by a former junior employee amounting to INR 326.76 million over the past periods,”
“The Group has recorded an expense for the aforementioned amount during the year ended March 31, 2024.” Swiggy has chosen not to comment further on the embezzlement incident, leaving many details undisclosed, according to the publication.
Swiggy is reportedly eyeing a valuation of approximately $15 billion (INR 1,25,981 crore) for its forthcoming initial public offering (IPO), aiming to raise between $1-1.2 billion. If successful, this would be one of the largest Indian IPOs this year.
In the Indian market for online food delivery from restaurants and cafes, Swiggy faces intense competition from Zomato. Both companies are also aggressively investing in the emerging quick-commerce space, which promises rapid delivery of groceries and other essentials within a remarkably short timeframe of just 10 minutes.
Media reports indicate that the family office of Bollywood icon Amitabh Bachchan has acquired a small stake in Swiggy, a move that comes as the food delivery platform prepares to go public. The investment was made through the purchase of shares from Swiggy’s employees and early backers, signaling a vote of confidence in the company’s future prospects.
In April, Swiggy secured shareholder approval to launch an IPO aimed at raising a substantial INR 10,414 crore. The funds will be generated through a combination of issuing new equity shares and an offer for sale, paving the way for the company’s highly anticipated public market debut.
