Swiggy, a popular food delivery platform in India, announced on Thursday that its food delivery business achieved profitability in March, less than nine years since its establishment. While the company also offers grocery delivery services, it recorded a wider loss for the financial year 2021-22 due to increased expenses, as reported by the Economic Times in January.
Over the past six months, Swiggy has undergone multiple rounds of layoffs, with plans to reduce its workforce reported in December and January. However, in a recent blog post, Swiggy’s CEO and founder, Sriharsha Majety, stated that the company has surpassed the peak of its investments and made significant progress toward profitability. He specifically mentioned the company’s grocery delivery service, Instamart, which had received substantial investments but is now on track to achieve contribution neutrality in the coming weeks. Instamart competes with Blinkit, owned by Zomato, and startup Zepto.
Swiggy currently holds a 45% market share in the food delivery industry. In May of the previous year, the company expanded its offerings by acquiring Dineout, a dining-out and restaurant tech platform. This move allowed Swiggy to enter the reservations and dine-out discounts market.
Swiggy’s publicly listed competitor, Zomato, is set to report its quarterly results on Friday. In February, Zomato reported a wider loss for the third quarter but showcased better-than-expected revenue growth.
Swiggy has achieved profitability in its food delivery business, marking a significant milestone for the company. Despite facing challenges and recording losses in the past financial year, Swiggy has made progress toward profitability and expects its grocery delivery service to contribute positively shortly. With a substantial market share and strategic acquisitions, Swiggy remains a key player in the Indian food delivery industry, competing with rivals such as Zomato.
