Swiggy’s Food Delivery Business Turns Profitable: CEO Sriharsha Majety
According to a blog post by Sriharsha Majety, the CEO and Co-founder of Swiggy, the on-demand convenience platform’s food delivery business has become profitable. Mr. Majety stated that Swiggy’s food delivery business turned profitable as of March 2023, considering all corporate costs but excluding employee stock option costs. He emphasized that this achievement is significant not only for Swiggy but also for the global food delivery industry, as the company has achieved profitability within nine years since its inception.
Mr. Majety expressed confidence in the growth potential of India’s eating out and food delivery sector over the next two decades. He mentioned that Swiggy will continue to focus on innovation and drive further growth in food delivery. The company aims to reach more milestones in the coming quarters. Swiggy’s strong partnership with its customers, as reflected in industry-best net promoter scores (NPS), repeat orders, and retention rates, has played a crucial role in achieving profitability.
Mr. Majety acknowledged that when Swiggy started its food delivery service in 2014, the on-demand food delivery experience was new and faced challenges. However, the company has overcome those obstacles and believes it is still early in India’s journey of eating out and food delivery. Swiggy plans to make responsible interventions to fuel further growth in food delivery and outpace industry growth by investing in the right areas.
While food delivery investments have yielded successful results, Mr. Majety also expressed excitement about Swiggy’s quick commerce business, Instamart. He highlighted the company’s significant investments in Instamart and its strategic importance. Swiggy expects Instamart to achieve contribution neutrality, where it covers its costs, in the next few weeks.
Regarding Dineout, which Swiggy acquired last year, Mr. Majety mentioned that it is fully integrated into the Swiggy platform. Dineout has become the leader in the dining out category, with over 21,000 restaurant partners across 34 cities.
It’s worth noting that two days prior to the blog post, Baron Capital Group, a US-based asset management firm, reduced its valuation of Swiggy by 34% to USD 7.1 billion as of December 2022.
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