Zomato Q3FY2025 adjusted revenue up 58%
Quick commerce (Blinkit) saw revenue more than double to Rs 1,399 crore.
Zomato reported a 58 percent increase in adjusted revenue at Rs 5,746 crore for the third quarter ended December 31,2024 on 57 percent increase in gross order value (GOV) at Rs 20,206 crore.
(Adjusted revenue is defined as consolidated revenue from operations as per financials + actual customer delivery charge paid in the food delivery business+ platform fee).
Quick commerce (Blinkit) saw revenue more than double to Rs 1,399 crore. GOV for Blinkit also doubled to Rs 7,798 crore. Blinkit had 1,007 stores at the end of December 31, 2024.
"The plan is to get to 2,000 stores by December 2025, one year ahead of earlier guidance of December 2026," says a shareholder letter issued by Zomato after announcing the results.
Albinder Dhindsa, Founder, Blinkit says: "To us, the biggest impact of the intensifying competition has been the acceleration in customer awareness and adoption of quick commerce. We have seen this play out in the early days of the food delivery business as well, when heightened competition led to higher investments in customer acquisition across the industry as a whole. This eventually (disproportionately) benefitted players with sustained good quality execution.
"In addition to that, heightened competition has led to a pause in margin expansion in the business, which is expected and should be temporary. So far, we have not seen any attrition of our core customers which tells us that customers are continuing to choose Blinkit over other options."
Akshant Goyal, Chief Financial Officer, Zomato is expecting losses to continue at Blinkit. "As we continue to bring forward store expansion, our networks may have to carry a greater load of under-utilised stores which will impact near-term profits in the next one or two quarters. These investments will however also likely result in GOV growth remaining meaningfully above 100 percent, at least for FY25 and FY26.
"Once we come out from this period of expansion, the business is likely to turn sharply from being loss making to becoming meaningfully profitable as a larger part of our business starts comprising mature stores compared to newly added ones. We remain confident of navigating the short term (expansion/ competition) with focus and discipline."
While food delivery revenue increased 17 percent to Rs 2,413 crore, the B2B business Hyperpure saw revenue increase 95 percent to Rs 1,671 crore.
Zomato finished the December quarter with a cash balance of Rs 19,235 crore, largely on account of the net proceeds of Rs 8,446 crore from its qualified institutional placement (QIP).
