Swiggy food delivery business has turned profitable: CEO Sriharsha Majety
In a blog post, Swiggy CEO Sriharsha Majety announced that the company's food delivery business has turned profitable in March 2023.
Foodtech firm Swiggy's food delivery business has turned profitable for the first time in March since its launch in 2014, Co-founder and CEO Sriharsha Mahety said on Thursday.
This includes all corporate costs, excluding costs for employee stock ownership plan, he wrote in a blogpost on Thursday.
"This is a milestone for food delivery globally, not just for us, ashas become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception," wrote Majety, adding that the company now looks to gain a stronger foothold in Tier II and III markets.
The CEO also highlighted the company's investment and trajectory in the quick commerce segment with its division Instamart and wrote that the business has "made strong progress on the profitability", and is on track to "hit contribution neutrality" in the next few weeks.
This announcement comes amid multiple valuation markdowns from the company's investors Baron Capital and Invesco.
On Tuesday, Baron Capital slashed the value of its investment in the food tech company by 34% from $76.8 million to $50.9 million.
Earlier this month, Invesco also slashed Swiggy's valuation to $5.5 billion, the investment management firm's second such move this year as it had earlier cut the food tech company's valuation to $8 billion from $10.7 billion in April.
Both investors were part of the $700 million mega funding round raised by Swiggy in January 2022 that doubled its valuation and turned it into a decacorn—a startup with a valuation of over $10 billion.
Swiggy also closed down its premium grocery delivery service, Handpicked, earlier this month, just six months after rolling out a pilot in Bengaluru.
The company laid off 380 employees in January and shut down its meat marketplace. Swiggy's revenue in FY22 doubled to Rs 5,705 crore from Rs 2,457 crore in FY21 but its losses widened to Rs 3,629 crore from Rs 1,617 crore in the same period.
According to media reports, the company is also planning to get ready for a public debut by September.
Edited by Saheli Sen Gupta