Swiggy's delivery riders often appear at par with their peers in Zomato on Indian roads, although the latter outpaced it by making a stock market debut in 2021. But Swiggy is getting there, as it hopes to become IPO ready by September this year, and has also laid off hundreds to cut costs for better efficiency along the way.
Swiggy has already surged past Zomato by becoming profitable, while its rival is yet to achieve the feat.
Profit comes months after cost-cutting move
Through a tweet, Swiggy's CEO Sriharsha Majety announced that his startup has turned profitable and created value for partners, months after laying off 380 employees.
He also acknowledged how disproportionate investments in Instamart, have made it a leading quick commerce platform in the global market.
At the same time, the calculations which concluded that the firm has made a profit excluded the money spent on employee stock options.
Zomato to follow suit?
Swiggy's announcement comes shortly before its listed rival Zomato is scheduled to reveal its January to March quarter earnings.
Zomato CEO Deepinder Goyal also congratulated his counterpart at Swiggy with a reply under his tweet.
Although Zomato posted a loss in the third quarter of FY23, Goyal has expressed confidence that the startup will bag $1 billion in profits by 2030.
