Swiggy, the popular on-demand convenience platform for food delivery, has announced that its food delivery business has become profitable, making it one of the few global players in the sector to achieve such a feat in under nine years since its inception. Sriharsha Majety, CEO and Co-founder of Swiggy, expressed optimism about the company’s growth potential in the next two decades and emphasized its commitment to driving further expansion in the food delivery industry. Majety highlighted the company’s focus on innovation and strong execution as key factors contributing to this milestone. Swiggy’s food delivery business turned profitable in March 2023, considering all corporate costs except employee stock option costs. This achievement is not only significant for Swiggy but also for the global food delivery market as a whole.
Majety expects Swiggy to reach more milestones in the coming quarters and commended the company’s partners for their role in this success. He acknowledged Swiggy’s strong relationship with its customers, boasting industry-leading Net Promoter Scores (NPS) as well as high rates of repeat business and customer retention. The CEO emphasized the company’s progress in gaining customer favor, particularly in Tier 2 and 3 markets, and improving its relationship with restaurant partners. Swiggy’s restaurant NPS has increased by over 100 percent in the past eight quarters. Majety believes that India’s journey of eating out and food delivery is still in its early stages, and Swiggy aims to outpace industry growth by investing in the right strategies.
While Swiggy’s investments in food delivery have started paying off, Majety expressed excitement about the growth trajectory of the company’s quick commerce business, Instamart. After significant investments, Instamart has become one of the leading players in the global quick commerce space. The business is on track to achieve contribution neutrality in the next few weeks. Majety also mentioned the integration of Dineout, which Swiggy acquired last year, enabling the company to cater to consumers for both delivery and dining out. Dineout is now the leader in the dining out category with a vast network of more than 21,000 restaurant partners across 34 cities. Despite recent valuation adjustments by Baron Capital Group, Swiggy remains confident in its growth prospects and is focused on further expanding its presence in the food delivery and quick commerce sectors.