Swiggy, a homegrown food aggregator, became profitable in March, paving the way for food tech platforms that have long struggled with high operating costs to turn a profit.
Sriharsha Majety, Swiggy’s CEO and Founder, stated in a blog post on Thursday that the company’s sharp focus on innovation, combined with strong execution, helped it achieve profitability, which accounts for all corporate costs excluding employee stock options.
In an earlier statement CEO Majety said “We have reached this milestone while bringing tremendous benefits to all partners in our ecosystem. 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.
“We continue to make strides in gaining customer favor, including strong traction in tier 2 and 3 markets. Our teams are more in sync than ever with restaurant partners to improve their experience with Swiggy and create mutual wins. As a result, our restaurant NPS has improved by over 100% in the past eight quarters.”
He described India’s eating out and food delivery trends as “early days.” Swiggy is optimistic about the company’s growth prospects over the next two decades.
The online food delivery company has also made “significant progress” in increasing the profitability of its Instamart quick-commerce business. “We’re on track to reach contribution neutrality in the next few weeks for this three-year-old business,” he said.