> ## Content Index
> Fetch the complete content index at: https://www.techloy.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Swiggy's food delivery business turns profitable for the first time
- URL: https://www.techloy.com/swiggys-food-delivery-business-reaches-profitability/
- Published: 2023-05-18T16:23:05.000Z
- Updated: 2023-05-18T16:23:05.000Z
- Author: Emmanuel Oyedeji
- Tags: Tech in India, Swiggy, Business

After 9 years of doing business, Swiggy's marquee food delivery business has finally achieved profitability.

The Bengaluru-headquartered startup which counts Prosus Ventures, SoftBank and Invesco among its backers became profitable in March this year, CEO and Co-founder Sriharsha Majety said in a blog post, eclipsing its publicly-listed rival Zomato on another key metric, per a *TechCrunch* report.

However, it's important to note that Swiggy as a whole company is still not profitable, primarily due to the high costs associated with its instant grocery delivery service, Instamart. The company made substantial investments in Instamart and is burning over $20 million per month. 

Nevertheless, Swiggy remains optimistic about Instamart's growth and profitability, highlighting its leading position in the quick commerce space. Also, [Swiggy says its acquisition of Dineout](https://www.techloy.com/indian-food-delivery-company-swiggy-acquires-dineout-for-200-million/) has enabled it to become a leader in the dining-out category.

It is worth noting that this development comes two days after U.S.-based asset management firm Baron Capital Group reduced its valuation of Swiggy by 34% to $7.1 billion as of December 2022.

It also comes at a time when India's $20 billion food delivery market is facing a critical juncture with several consolidations and exits taking place in recent years. Notably, Uber made a strategic decision to sell its food delivery unit in India to Zomato, while [Amazon ](https://www.techloy.com/amazon-to-shut-down-food-delivery-arm-in-india/)[o](https://www.techloy.com/amazon-to-shut-down-food-delivery-arm-in-india/)pted to exit the food business altogether late last year.

[Indian Startup Valuations Take a Hit as Funding Landscape ShiftsIn the midst of a capital funding frenzy from investors which reached $42 billion in 2021 per Inc42’s annual start-up funding report, Indian startups basked in the glow of skyrocketing valuations. Investors’ optimism led to soaring valuations for these consumer-facing platforms leading some of thes…![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/size/w256h256/2021/07/techloy-dot.png)TechloyEmmanuel Oyedeji![](https://images.unsplash.com/photo-1611974789855-9c2a0a7236a3?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=M3wxMTc3M3wwfDF8c2VhcmNofDJ8fHN0b2NrfGVufDB8fHx8MTY4NDE1OTk2OXww&ixlib=rb-4.0.3&q=80&w=2000)](https://www.techloy.com/indian-startup-valuations-are-taking-a-hit/)