Swiggy’s food delivery business achieves profitability

Featured Sponsor

Store	Link	Sample Product
UK Artful Impressions	Premiere Etsy Store

India’s Swiggy said Thursday that its food delivery business has turned profitable, eclipsing publicly traded rival Zomato in another key metric a day before the company is due to report quarterly earnings.

The Bangalore-based startup, which counts Prosus Ventures, SoftBank and Invesco among its backers, turned profitable in March this year, he said. However, it does not factor in the costs of employee stock options in the expense, Swiggy said.

“This is a milestone for global food delivery, not just for us, as Swiggy has become one of the few global food delivery platforms to achieve profitability in less than 9 years since its inception,” he said. Swiggy co-founder and CEO Sriharsha Majety. wrote in a blog post.

Swiggy, at the company level, is still not profitable. The startup is spending more than $20 million a month on its instant grocery delivery business, called Instamart, according to two people familiar with the matter. This is after the company significantly reduced its spending on Instamart in recent quarters.

“We have reached this milestone while delivering tremendous benefits to all partners in our ecosystem. Our core value of putting the customer first has been consistently matched with a deep love for the consumer and the best NPS scores, repeat rates and retention in the industry. We continue to make strides to win customer favor, including strong traction in Tier 2 and 3 markets.”

Thursday’s update, shared a day before Zomato reports its earnings, is much-needed news for Swiggy, which in recent months has seen its valuation cut by many of its investors.

More to follow.