Food delivery major Swiggy says it’s profitable after 9 years

Photo credit: Swiggy

Swiggy, an India-based food delivery platform, said that its food delivery business has turned profitable for the first time since its inception in 2014.

CEO and co-founder Sriharsha Majety called this a milestone not just for Swiggy but also the food delivery sector globally.

He noted that the economics of the industry were constantly questioned, but Swiggy managed to stand out with its full-stack food tech offering that gives users complete visibility from ordering to delivery.

Last year, the company also acquired Dineout, an Indian restaurant-tech platform, to accommodate both delivery and dine-out experiences. In addition, Swiggy has a quick commerce business called Instamart.

Majety said these ventures have “the right operating models” that saved the company hundreds of millions in acquisition costs and the resulting dilution in equity.

In January, Swiggy laid off 380 employees as part of a restructuring move.

“This has been an extremely difficult decision taken after exploring all available options and I’m extremely sorry to all of you for having to go through with this,” Majety wrote in the email at the time, which was reviewed by Tech in Asia.

Swiggy directly competes with Zomato in the food delivery and quick commerce space. Valued at over US$10 billion, Swiggy raised US$700 million in January 2022.

See also: Will India’s 10-minute quick commerce model last?