Indian 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.
Investment bankers and mutual fund investors hold the view that Swiggy will be very closely compared to Zomato at the time of listing and needs to beat the older rival on many metrics if it desires a good valuation.
Swiggy didn’t immediately respond to a request for comment. Indian newspaper ET first reported the layoff.
