Swiggy‘s food delivery business has turned a profit for the first time, the company’s CEO said in a statement.
What Happened? CEO Sriharsha Majety said in a blog post that the company’s main business was in the black after accounting for all corporate costs, but excluding costs related to employee stock options.
Majety also said that the firm was “excited” about the trajectory of its quick-commerce business, Instamart. He added that the division had also made strong progress on the profitability front and is set to hit breakeven in the next few weeks.
“We continue to make strides in gaining customer favour, including strong traction in Tier 2 and 3 markets,” the CEO said.
The milestone comes as a welcome event at a time when Swiggy faces several headwinds. Earlier this month, US investment manager Invesco marked down the valuation of the Indian food delivery giant by about a third to $5.5 billion (₹45,383 crore).
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At the same time, both Swiggy and rival Zomato are contending with the rise of the government-backed Open Network for Digital Commerce (ONDC), which threatens to undercut the pricing models of the platform-based food delivery firms.
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