Growth of Swiggy’s quick commerce business
Swiggy CEO Sriharsha Majety announced on Thursday that their food delivery business has achieved profitability as of March 2023, taking into account all corporate costs except for employee stock option costs. While specific numbers were not disclosed, Majety emphasized that this milestone sets Swiggy apart as one of the few global food delivery platforms to achieve profitability in less than nine years since its establishment. He attributed this success to improved collaboration between Swiggy’s teams and restaurant partners, leading to a significant increase in the restaurant net promoter score (NPS) over the past eight quarters.
Majety also mentioned Swiggy’s acquisition of Dineout for approximately $120 million in an all-stock deal, positioning Swiggy as a leader in the dining out category with over 21,000 restaurant partners across 34 cities.
The CEO expressed excitement about the growth of Swiggy’s quick commerce business, Instamart, stating that they have made significant progress towards profitability. He anticipated achieving contribution neutrality for Instamart, which is a three-year-old business, in the coming weeks. Market research firm RedSeer predicts that the quick commerce sector will reach $5.5 billion by 2025.
While Swiggy’s losses doubled to Rs 3,629 crore in the financial year 2021-2022 compared to Rs 1,617 crore in the previous fiscal year, its revenue saw substantial growth, increasing 2.2 times to Rs 5,705 crore during the same period, as reported in the company’s annual financial statement filed with the Registrar of Companies (RoC).
