“As of March 2023, Swiggy’s food delivery business has turned profitable (after factoring in all corporate costs; excluding employee stock option costs),”Majety said in a blog post.
“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.”
Meanwhile, rival platform Zomato’s founder and CEO Deepinder Goyal congratulated the company on Twitter. Replying to Majety’s tweet, Goyal tweeted, “Congratulations! Nicely done.”
Zomato will announce its financial results tomorrow on May 19.
Discover the stories of your interest
The blog post from Majety comes just days after a series of valuation markdowns by Swiggy’s investors Baron Capital and Invesco.
While Invesco marked down its investment in Swiggy by half to $5.5 billion, Baron Capital Group has marked down its valuation of Swiggy by 34% to $7.1 billion as of December 2022.
ET had reported earlier in January that Swiggy laid off 380 employees as part of companywide restructuring led by slowing growth in its food delivery business.
In an internal note to employees, Majety wrote that growth at the food delivery business has not been in line with the company’s projections.
Meanwhile, Zomato is also inching closer towards profitability in its food-delivery business. The company recorded an adjusted Ebitda of Rs 38 crore (operating loss), excluding its quick commerce business Blinkit during the third quarter (October- December) of the financial year ending March 31, 2023.
Its adjusted operating loss, which excludes interest, tax, depreciation and amortisation, stood at Rs 272 crore a year earlier.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines. For all the latest Technology News Click Here