Layoffs · Commerce & Consumer Brands

Swiggy lays off 350-400 employees ahead of IPO

By Startup Enthusiast · 25 January 2024

What they do

Swiggy operates an online food ordering and delivery platform in India

It has laid off 350-400 employees, about 5-6% of its workforce, in January 2024

The layoff is part of cost-cutting to achieve profitability by H2 2024 before a planned IPO in FY25

Swiggy has laid off 350-400 employees, which is about 5-6% of its workforce, as part of plans for a potential IPO expected in FY25.
The layoff happened in January 2024.
The company is gearing up for an IPO and aiming for profitability by H2 2024.
Affected employees are receiving standard severance packages plus other benefits.
This is Swiggy's second major layoff in two years; a similar number were let go in January 2023.
In the previous layoff, Swiggy also shut its meat marketplace business.
The IPO is expected in the next fiscal year (FY25).
Several top-level executives left Swiggy in FY24, including Sidharth Satpathy, Dale Vaz, Karthik Gurumurthy, Ashish Lingamneni, Nishad Kenkre, and Anuj Rathi.

Growth and late-stage startups are cutting costs amid a funding winter and prioritizing profitability.
Other companies with recent layoffs include Simplilearn, Third Wave Coffee, Udaan, ShareChat, Bolt.Earth, Paytm (~1000), Flipkart (1000-1500), Cult.fit, and InMobi.
Swiggy's valuation was marked up to $8.3 billion by Invesco, its second increase in three months.
Swiggy's peak valuation was $10.7 billion after a $700 million round in January 2022.

Swiggy makes money through delivery fees, commissions from restaurants, and advertising.