New Delhi: On-Demand Convenience Platform Swiggy‘S food delivery business has turned profit, making it one of the very few global players in this sector to have achieved such a feat in less than nine years, the company’s CEO and co-founder Sriharsha Majeti said on Thursday.
Excited on India’s journey of eating out and food delivery, Majety said in a blogpost that Swiggy is “very optimistic about the growth potential over the next two decades” and will continue to grow further in food delivery.
He wrote, “Our focus on innovation, coupled with strong execution, marks another milestone. As of March 2023, Swiggy’s food delivery business has become profitable (after including all corporate costs; employee stock option costs). except).”
Further, Majetti said, “This is a milestone not only for us but for food delivery globally, as Swiggy is one of the very few global food delivery platforms to achieve profitability in less than nine years of its inception.” has become one.”
The company expects to reach more such milestones in the coming quarters, he added.
He appreciated all the partners of the company for helping achieve the milestone, adding that Swiggy has a strong relationship with its customers with “industry-best NPS (Net Promoter Score), repeat and retention rates”. Is.
“We continue to strive to gain customer favor, including strong traction in Tier 2 and 3 markets. Our teams are collaborating more than ever with restaurant partners to enhance their experience with Swiggy and achieve a mutual win. As a result, our restaurant NPS has improved by more than 100 percent over the last eight quarters,” said Mazzetti.
The company’s CEO said that when Swiggy launched food delivery in 2014, its debut and core offering, the on-demand food delivery experience, was new and broken and many viewed it as an unviable business model. .
On the road ahead, he said, “We strongly believe that it is still early days in the food and food delivery journey outside India, and are very optimistic about the growth potential over the next two decades. We look forward to creating responsible and measured Interventions to promote further growth in food distribution.”
Noting that there are too many geographies and consumer segments that are underserved, he said, “We aim to outpace industry growth by continuously investing in the right levers”.
While investments in food delivery are starting to successfully pay off, Majetti said, Swiggy is “very excited about the trajectory of our instant commerce business as well, instamart,
Having built the category from the ground up, and having “invested disproportionately in Instamart given the attractiveness of the consumer proposition and its strategic importance to us”, he added, “The peak of our investments is behind us and today, Instamart is one of them.” One of the leading players in the instant commerce sector globally.”
In addition, he added, “We have also made strong progress on the profitability of the business and we are on track to hit contribution neutrality for this 3-year business in the next few weeks.”
On Dineout, which was acquired by Swiggy last year, which enabled it to cater to consumers for every dining occasion – be it delivery or eating out, he said, “Today, Eat Out Fully integrated with Swiggy and a leader in the dining out category with over 21,000 restaurant partners across 34 cities.”
Mazzetti’s blogpost comes two days after US-based asset management firm Barron Capital Group slashed Swiggy’s valuation by 34 per cent to $7.1 billion by December 2022.
Excited on India’s journey of eating out and food delivery, Majety said in a blogpost that Swiggy is “very optimistic about the growth potential over the next two decades” and will continue to grow further in food delivery.
He wrote, “Our focus on innovation, coupled with strong execution, marks another milestone. As of March 2023, Swiggy’s food delivery business has become profitable (after including all corporate costs; employee stock option costs). except).”
Further, Majetti said, “This is a milestone not only for us but for food delivery globally, as Swiggy is one of the very few global food delivery platforms to achieve profitability in less than nine years of its inception.” has become one.”
The company expects to reach more such milestones in the coming quarters, he added.
He appreciated all the partners of the company for helping achieve the milestone, adding that Swiggy has a strong relationship with its customers with “industry-best NPS (Net Promoter Score), repeat and retention rates”. Is.
“We continue to strive to gain customer favor, including strong traction in Tier 2 and 3 markets. Our teams are collaborating more than ever with restaurant partners to enhance their experience with Swiggy and achieve a mutual win. As a result, our restaurant NPS has improved by more than 100 percent over the last eight quarters,” said Mazzetti.
The company’s CEO said that when Swiggy launched food delivery in 2014, its debut and core offering, the on-demand food delivery experience, was new and broken and many viewed it as an unviable business model. .
On the road ahead, he said, “We strongly believe that it is still early days in the food and food delivery journey outside India, and are very optimistic about the growth potential over the next two decades. We look forward to creating responsible and measured Interventions to promote further growth in food distribution.”
Noting that there are too many geographies and consumer segments that are underserved, he said, “We aim to outpace industry growth by continuously investing in the right levers”.
While investments in food delivery are starting to successfully pay off, Majetti said, Swiggy is “very excited about the trajectory of our instant commerce business as well, instamart,
Having built the category from the ground up, and having “invested disproportionately in Instamart given the attractiveness of the consumer proposition and its strategic importance to us”, he added, “The peak of our investments is behind us and today, Instamart is one of them.” One of the leading players in the instant commerce sector globally.”
In addition, he added, “We have also made strong progress on the profitability of the business and we are on track to hit contribution neutrality for this 3-year business in the next few weeks.”
On Dineout, which was acquired by Swiggy last year, which enabled it to cater to consumers for every dining occasion – be it delivery or eating out, he said, “Today, Eat Out Fully integrated with Swiggy and a leader in the dining out category with over 21,000 restaurant partners across 34 cities.”
Mazzetti’s blogpost comes two days after US-based asset management firm Barron Capital Group slashed Swiggy’s valuation by 34 per cent to $7.1 billion by December 2022.