Foodtech unicorn Swiggy said its food delivery business, which accounts for the majority of its revenue, has turned profitable as of March 2023, excluding costs related to employee stock ownership plans (ESOPs).
The SoftBank-backed company’s chief executive Sriharsha Majety said in a blog post that the firm’s sharp focus on innovation, coupled with strong execution, helped it achieve the feat.
“This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception,” he added. Majety didn’t reveal any numbers.
Meanwhile, sharing an update on Swiggy’s quick commerce business, Instamart, Majety said that the business was on track to achieve break-even on a per-order basis in the coming weeks.
“We’ve also made strong progress on the profitability of the business and we’re on track to hit contribution neutrality for this three-year-old business in the next few weeks,” he said.
In the financial year 2022, Swiggy had reported a consolidated loss of Rs 3,628.9 crore, more than double its loss of Rs 1,616.9 crore in the preceding financial year on the back of rising support costs. Its revenue from operations grew more than two-fold to Rs 5,704.9 crore in FY22 from Rs 2,546.9 crore the year before. The company is yet to post its financials for 2022-23.
Swiggy has achieved the milestone at a time when the overall food delivery business is facing a slowdown as a result of a macroeconomic slowdown in the mid-market segment as well as the boom in dining out.
https://www.vccircle.com/swiggys-food-delivery-biz-turns-profitable-excluding-esop-costs-ceo
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