Swiggy's Food Delivery Business Turns Profitable Within Nine Years Of Inception

India's leading food delivery platform, Swiggy, recently made an announcement on Thursday that their food delivery business turned profitable in the month of March, less than nine years since its inception.

The company, which also provides food delivery services, experienced a larger deficit for the fiscal year 2021-2022 due to an increase in spending, the Economic Times reported in January.

Swiggy has gone through several rounds of layoffs over the past six months; plans to let go of staff were announced in December and January.

"Excited that Swiggy turned its food delivery business profitable in March'23, while creating value for all our partners. Our teams have worked tirelessly to build long term value putting customers first each day", CEO Sriharsha Majety said in a tweet.

The chief executive and founder of Swiggy, Sriharsha Majety, said in a blog post that the firm has reached its top in terms of investments after making "disproportionate" expenditures in its grocery delivery service, Instamart, which competes with Zomato's (ZOMT.NS)-owned Blinkit and startup Zepto.

"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," he said in the blog.
Swiggy, which holds a 45% share of the market for food delivery, purchased the dining-out and restaurant technology platform Dineout in May of last year in order to join the market for bookings and dine-out discounts.

The quarterly earnings of rival startup Zomato will be made public on Friday. In addition to better-than-expected revenue growth, it reported a higher third-quarter loss in February.