Swiggy, a day ahead of Zomato’s quarterly earnings announcement, declared that its food-delivery business turned profitable in the March quarter of FY23, after factoring in all corporate costs, excluding employee stock option (ESOP) costs.

In a blog-post on May 18, Sriharsha Majety, Co-founder and Chief Executive Officer (CEO), Swiggy, said that Instamart, company’s quick commerce segment, is on track to become contribution-margin break-even in the next few weeks.

For a better understanding of the development, food delivery gaint, Zomato had declared adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) break-even for the food delivery segment in the first quarter of FY23. While it achieved the milestone in the next quarter, Zomato announced earlier this year that the entire business is now profitable on adjusted EBITDA terms, excluding its quick commerce business Blinkit.

Majety added, "Swiggy has become one of the very few global food delivery platforms to achieve profitability in less than nine years since its inception."

Over the past few weeks, US investors such Invesco and Baron Capital have marked down the fair value of their stakes in the Bengaluru-based startups. Invesco last valued Swiggy at around USD 5.5 billion, while Baron Capital valued Swiggy at around USD 7.3 billion, which is higher than Zomato's market capitalisation of around USD 6.5 billion. Swiggy was worth USD 10.7 billion when it raised USD 700 million in January of last year.

Swiggy, recently, closed its meat marketplace, laid off 380 employees in January of this year, and even reconsidered other indirect costs, such as infrastructure, to weather the downturn in the startup ecosystem.

Swiggy's Food-delivery Arm Turns Profitability In March: CEO And Co-founder

Over the past few weeks, US investors such Invesco and Baron Capital have marked down the fair value of their stakes in the Bengaluru-based startups