Swiggy’s food delivery business reaches profitability

Image credit: Indranil Aditya/NurPhoto/Getty Images

India’s Swiggy said Thursday ahead of announcing quarterly earnings that its food delivery business was profitable and outperformed listed rival Zomato in another key metric.

Backed by Prosus Ventures, SoftBank and Invesco, the Bangalore-based start-up turned profitable in March, the company said. But Swiggy says it doesn’t factor in employee stock option costs into its expenses.

“This is a milestone not only for our company, but for food delivery globally,” said Sriharsha Majety, co-founder and CEO of Swiggy. It has become one of the few global food delivery platforms.” wrote in a blog post.

Swiggy is not yet profitable at the corporate level. The startup spends more than $20 million a month on its instant grocery delivery business called Instamart, according to two people familiar with the matter. This comes after the company has slashed its spending on Instamart in recent quarters.

“We have reached this milestone while delivering significant benefits to all our partners in our ecosystem. , has been consistently rewarded by repeat and retention rates.We continue to make strides in customer favors, including strong traction in Tier 2 and 3 markets.”

More to come.

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