Sriharsha Majety, co-founder and CEO of Swiggy, announced in a blog post that the company has turned profitable, a day before Zomato is slated to announce its Q4FY23 results.
The Indian food delivery market has witnessed tremendous growth over the years, driven by factors such as changing consumer preferences, urbanization, and the convenience of doorstep dining. However, profitability has remained a significant challenge for players in this sector due to high operating costs, intense competition, and the need for continuous investments in logistics and technology.
Zomato is slated to announce its Q4FY23 results tomorrow.
In the blog post, Majety wrote, "This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception."
"This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception," Majety wrote in the post.
The CEO also factored in the reasons that have led to the company hitting the profitability benchmark. "Our sharp focus on innovation, coupled with strong execution has led to yet another milestone- As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in ALL corporate costs; excluding employee stock option costs)," he said.
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. Read more HERE...https://t.co/yKAKP7muHD
— Sriharsha Majety (@harshamjty) May 18, 2023
In the coming times, Majety highlighted that the company’s aim is to penetrate deeper into the Tier II and III markets, keep exploring the unexplored geographies and segments, and continue to take measures to fuel the growth of the food delivery industry.
Swiggy’s achievement of profitability not only showcases the company’s dedication and perseverance but also highlights the potential for sustainable growth in the food delivery space. It serves as an inspiration for other players in the industry, encouraging them to innovate, streamline operations, and explore new avenues for revenue generation.
