Sriharsha Majety, CEO and co-founder, Swiggy, also announced that its on demand grocery deliveries Instamart will hit contribution neutrality soon.
In a blogpost, Sriharsha Majety, CEO and co-founder, Swiggy, announced that the company's food delivery business has turned profitable. Swiggy was incepted in 2014 and took about nine years to achieve profitability in its food delivery business.
Apart from food delivery, Swiggy also offers demand grocery deliveries under Instamart and package delivery service called Swiggy Genie. He also observes that Instamart will reach contribution neutrality in the next few weeks.
Majety says that the company has seen a strong traction in tier-II and tier III cities and is also seen improvements in customer favor. He also informs that restaurant Net Promoter Score has also increased by over 100% in the last eight quarters.
He also says that Swiggy is focused on building delivery partner-forward initiatives like the Swiggy Skills Academy. "Our success in bettering the delivery experience is evident even in third-party reports that have ranked Swiggy the highest among all on-demand delivery platforms in the country."
Swiggy reached net profitability for its food delivery business after factoring in corporate costs, excluding employee stock option cost. For FY22, Swiggy’s revenue from operations touched Rs 5,705 crore. Losses also touched to Rs 3,628 crore.