Swiggy Registers Profits In The Food Delivery Business In March 2023

Swiggy, India’s popular online food delivery business, turned out profitable as per the recent financial report of March 2023. In a recent blog post, Swiggy’s CEO Sriharsha Majety wrote that the company’s food delivery has become profitable in the March of FY2 due to the company’s decision to cut down the corporate costs and exclude the Employee Stock Ownership Plan (ESOP). 

With this news, Swiggy has become one of the few global players to achieve this feat in less than nine years since its inception. In December, the company’s investors, including Baron Capital Group, slashed Swiggy’s valuation by 34 per cent due to its weak financials. An increase in operating profit also affects Swiggy share price directly. In this post, we will discuss the effect of the profitable business on Swiggy unlisted shares. 

How Swiggy Turned Out Profitable In FY23?

Ahead of the unstable economy, many unicorns in India struggle to make a profit. Even Swiggy’s biggest rival, Zomato, has weak financials, including higher losses per financial year. As it is an unlisted company, the recent quarter for the financial year 2023 will also impact Swiggy stocks performance in the grey market.

However, the biggest question everyone is asking here is how Swiggy turned out profitable ahead of high competition and food delivery challenges. One of the major reasons behind it is disclosed by the company’s CEO, which is the strategy of considering corporate costs and excluding employee stock options. 

In the blog post, Sriharsha wrote, “As of March 2023, Swiggy’s food delivery business has turned profitable after factoring in all corporate costs; excluding employee stock option costs. This is a global milestone for food delivery, not just for us, as Swiggy has become one of the few global food delivery platforms to achieve profitability in less than 9 years since its inception.”

The food delivery firm reached this milestone by benefiting its customers and delivery partners. In addition, the company plans to expand its market base in Tier 2 and 3 markets with this profitability. As per the financial data shared by the company, Swiggy’s monthly cash burn reportedly reduced from $50 million to $20 million. 

Apart from this, Swiggy made a huge investment in its fastest grocery delivery business known as InstaMart which is the leading player in quick e-commerce delivery. There are also huge chances that Swiggy’s business model benefits from its efforts in expanding the reach of the instant delivery of various grocery items. Swiggy’s food delivery business turns out profitable when it plans to bring its IPO. It is interesting to see how Swiggy share price will affect in the future.

How Swiggy’s Positive Financials Will Impact Its Unlisted Shares?

Investors planning to buy Swiggy stocks must consider the impact of the company’s recent financials on its unlisted shares. In the fourth quarter of the last financial year, Swiggy reported a revenue of Rs 5,704.9 crore, higher than its rival Zomato, whose operating revenue was Rs 4,687.3 crore. 

Moreover, the company also maintained a positive CAGR of 45%, which provides its food delivery business with an extra edge to become profitable. Here are the possible impact of Swiggy’s positive financials on its unlisted shares:

Increase In Share Price

As the company goes profitable, its improved financials will directly affect the share price. Since Swiggy is an unlisted company, we can expect an increase in Swiggy share price in the next few months. However, it is not predicted how much the Swiggy stock price will increase due to its profitable food delivery business. If you plan to buy Swiggy unlisted shares, you must monitor its price movement. 

Change In Face Value 

Another metric of Swiggy stock is its face value. In the recent financial results, Swiggy reported that its yearly losses reduced by 2.24%, which made its food delivery business profitable. So, we expect a slight change in Swiggy stocks face value that will impact its share price.

Better Market Valuation

The market valuation of the Swiggy stocks is also expected to be affected by the company’s recent financials. Currently, unlisted shares of Swiggy are traded at the price of Rs 360 per share. However, it is difficult to predict the market valuation of Swiggy unlisted shares and how it will benefit investors in the long run.

Invest In Unlisted Shares Of Swiggy

The recent news of Swiggy’s profitable food delivery business shows its consistent efforts to improve its financials. Moreover, Swiggy’s officials also stated that they plan to expand their business in top-tier markets. Swiggy’s share price is expected to increase along with its business performance. You should invest in Swiggy unlisted shares to get future benefits. 

To check the updated share price and the company’s financials, you can use Stockify. Here, you will get expert assistance throughout the process. In addition, you can also explore other high-performing companies like OYO, Tata Technologies, HDFC Financial Services, and many more. To start investment, connect with experts now!