IPO-bound food delivery platform Swiggy has disclosed that a former junior employee allegedly embezzled more than Rs 33 crore over a period of time from one of its subsidiaries.
As per reports, the Zomato rival initiated a probe with an external team and has filed a legal complaint against the individual whose name was withheld in its annual report for the financial year 2023-24.
“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 Mn over the past periods.,” the annual report mentioned.
Based on review of the facts discovered during the investigation, “the Group has recorded an expense for the aforementioned amount during the year ended March 31, 2024,” the report added.
However, such a large embezzlement from a junior employee raises further questions about corporate governance at the firm.
The company filed its initial public offering (IPO) draft documents through the confidential route In April, and plans to raise up to Rs 3,750 crore (approximately $450 million) through a new issuance and up to Rs 6,664 crore (about $800 million) via an offer-for-sale (OFS) in its $1.25 billion IPO.