Swiggy, one of India's two players in the food delivery duopoly, has turned profitable in its core offering, according to Chief Executive Officer Sriharsha Majety.
"As of March 2023, Swiggy's food delivery business has turned profitable (after factoring in all corporate costs; excluding employee stock option costs)...Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception," Majety wrote in a blog post on Thursday.
Interestingly, the announcement by Swiggy comes one day before its rival Zomato Ltd. is set to announce its Q4 earnings.
It's still very early days in India's journey of eating out and food delivery, Majety said. "We are very sanguine about the growth potential over the next two decades. We will continue to make responsible and measured interventions to fuel further growth in food delivery. There are many underserved geographic and consumer segments and our goal remains to outpace industry growth by continuously investing in the right levers."
Swiggy has made "disproportionate investments in Instamart" given the attractiveness of the consumer proposition, he said.
"The peak of our investments is behind us and today, Instamart is one of the leading players in the quick commerce space globally. In addition, we've also made strong progress on the profitability of the business and we're on track to hit contribution neutrality for this 3-year-old business in the next few weeks," Majety wrote.
The Bengaluru-based company expects to reach more such milestones in the coming quarters, he said.
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