BENGALURU (Reuters) – India’s Swiggy said on Thursday its food delivery business achieved profitability in March, less than nine years since its inception.
The company, which also offers grocery delivery services, had recorded a wider loss for the financial year 2021-22 on a surge in expenses, the Economic Times reported in January.
Swiggy has had multiple rounds of layoffs in the last six months, with plans to let go of employees reported in December and January.
In a blog post, Swiggy’s chief executive and founder Sriharsha Majety said the peak of the company’s investments was behind them, having made “disproportionate” investments in its grocery delivery service Instamart, which competes with the Zomato-owned Blinkit and startup Zepto.
“We’ve also made strong progress on the profitability of the business and we’re on track to hit contribution neutrality for this 3-year-old business in the next few weeks,” he said in the blog.
Swiggy, which has a 45% market share in the food delivery market, acquired dining-out and restaurant tech platform Dineout in May last year to enter the reservations and dine-out discounts market.
Publicly listed rival Zomato will report its quarterly result on Friday. It reported a wider third-quarter loss with better-than-expected revenue growth in February.
(Reporting by Varun Vyas in Bengaluru; Editing by Savio D’Souza and Janane Venkatraman)
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