Swiggy, the popular food and grocery delivery platform, is currently facing a significant financial challenge as it grapples with an assessment order from the Income Tax Department. The order demands a staggering 158.25 crore rupees (equivalent to US$18.5 million) in unpaid taxes. This amount is linked to cancellation charges paid to merchants and interest income on income tax refunds.
Challenging the Order
Swiggy has expressed its intention to contest the assessment order through either a review process or an appeal. The company maintains that this ruling will not have a substantial impact on its financial standing or day-to-day operations. Additionally, Swiggy had previously received notices for 1.1 crore rupees (US$128,500) in outstanding dues related to cancellation charges for the fiscal years 2018 and 2019, and it plans to appeal these orders as well.
A Closer Look at Recent Swiggy Developments
Let’s delve into some notable recent milestones in Swiggy’s journey:
On March 29, 2025, there was news that both Swiggy and Zomato might be required to contribute 2% of gig workers’ earnings towards a pension scheme—an initiative by India aimed at providing social security benefits to such workers.
Earlier in March, Swiggy made strategic moves by diversifying into new sectors. It ventured into the business-to-business (B2B) space with ‘Assure,’ a platform focusing on providing kitchen supplies—a move intended to compete with Zomato’s Hyperpure in the B2B market.
Moreover, Swiggy witnessed expansion as its service Swiggy Instamart reached 100 cities across India in mid-March of 2025. However, despite this growth trajectory, the company reported losses amounting to ₹799 crore during Q3 and announced plans for further expansion through ‘megapods.’
In terms of sustainability efforts, Swiggy set ambitious goals by aiming to transition its entire delivery fleet to electric vehicles (EVs) by the year 2030—an initiative aligned with broader environmental consciousness within corporate practices.
The stock market also reflected fluctuations in Swiggy’s performance—on March 3rd of the same year, shares hit an all-time low of $3.63 but bounced back on February 19th when shares surged by nearly 7%, boosting their market capitalization significantly.
Expert Insights
Analysts speculate that while tax challenges like these can pose short-term hurdles for companies like Swiggy, they are unlikely to derail their long-term growth prospects significantly if managed effectively through legal channels. With dynamic shifts in regulatory frameworks impacting digital platforms globally, adapting swiftly becomes imperative for sustained success.
As we navigate through these developments surrounding one of India’s leading delivery platforms, only time will reveal how effectively Swiggy navigates these challenges while continuing its mission of revolutionizing convenience for consumers nationwide.
