Swiggy's food delivery business turned profitable in March: CEO Majety

Swiggy's food delivery business turned profitable in the March quarter of FY23 (Q4 FY23) after considering corporate costs and excluding employee stock options (ESOP), said its CEO in a blog post on Thursday.

Sriharsha Majety wrote about Swiggy's finances days after two US investors marked down their valuation of the company. A fund managed by asset management firm Baron Capital Group slashed the Swiggy’s valuation by 34 per cent to $7.1 billion as of December 2022, according to filings with USA's Securities and Exchange Commission (SEC). Invesco, which led Swiggy’s previous funding round, marked down the valuation by 33 per cent from $8.2 billion to about $5.5 billion, according to a filing.

Swiggy’s information about its financial performance comes a day before its chief rival Zomato announces its Q4FY23 and full-year performance.

“As of March 2023, Swiggy’s food delivery business has turned profitable (After factoring in all corporate costs; excluding employee stock option costs),” said Majety, a co-founder of the company.
“This is a milestone for food delivery globally, not just for us, as Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than 9 years since its inception.”

Majety said that the firm reached the milestone while bringing benefits to its delivery partners and customers. “Our core value that the customer comes first has consistently been reciprocated with deep consumer love and industry-best NPS scores, repeat and retention rates,” said Majety. “We continue to make strides in gaining customer favour, including strong traction in Tier 2 and 3 markets.”

He said his teams "are more in sync than ever" with restaurants to improve their experience with Swiggy. As a result, Swiggy’s restaurant NPS (net promotor score) has improved by over 100 per cent in the past 8 quarters.