Tue Oct 22 10:10:00 UTC 2024: **Summary of Zomato’s Q2 FY25 Performance:**

– **Revenue Growth**: Zomato reported a 68.5% quarter-on-quarter increase in operating revenue, reaching Rs 4,799 crore in Q2 FY25, compared to Rs 2,848 crore in Q2 FY24.

– **Key Drivers**: The growth was primarily fueled by the expansion of Zomato’s core food delivery services, the B2B Hyperpure vertical, and the quick commerce segment, Blinkit.

– **Funding Plans**: Zomato’s board approved a resolution to raise Rs 8,500 crore through qualified institutional investors, coinciding with rival Swiggy’s public listing announcement.

– **Revenue Breakdown**:
– **Food Delivery**: Contributed 42% of total revenue, growing 30% to Rs 2,012 crore.
– **Quick Commerce (Blinkit)**: Revenue surged 129% to Rs 1,156 crore, driven by increased order frequency and new store openings.
– **Hyperpure**: Revenue increased 97% to Rs 1,473 crore, indicating strong demand from restaurants for procurement.

– **Expenses**: Total expenditures rose significantly to Rs 4,783 crore, influenced by increased delivery charges (up 97.9% to Rs 1,334 crore), procurement, employee benefits, and marketing costs.

– **Profitability**: Reported net profit increased 4.8 times to Rs 176 crore, compared to Rs 36 crore in Q2 FY24. EBITDA improved, with losses narrowing to Rs 186 crore.

– **Cash Reserves**: Zomato ended the quarter with a strong cash balance of Rs 10,800 crore.

– **Stock Performance**: Despite these improvements, Zomato’s stock dipped to Rs 256.55 with a market cap of Rs 2,26,645 crore ($27 billion) as of October 22, 2024.

– **Future Outlook**: Zomato is strategically positioned for future growth by scaling operations, enhancing unit economics, and expanding its business segments, particularly in anticipation of competition with Swiggy.

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