Fri May 02 04:20:00 UTC 2025: ## Zomato’s Parent Company, Eternal, Sees Sharp Drop in Profit Amidst Quick Commerce Competition

**MUMBAI, INDIA (May 2, 2025)** – Eternal, the parent company of India’s popular food delivery app Zomato, announced a significant drop in its fourth-quarter profit, revealing the intense pressures of the burgeoning quick commerce market. The company reported a nearly 78% decline in net profit, falling to ₹390 million ($4.6 million) compared to ₹1.75 billion a year earlier.

The decline is largely attributed to increased spending on Eternal’s Blinkit quick commerce platform, which competes with Swiggy’s Instamart and Zepto. While Blinkit’s revenue more than doubled year-on-year to ₹17.09 billion, its adjusted core loss widened to ₹1.78 billion, highlighting the high cost of competing in this rapidly expanding sector. The fierce competition has driven companies to offer substantial discounts and subsidized deliveries, delaying profitability despite growing market share.

In contrast, Zomato’s food delivery business showed a more modest 17% year-on-year revenue growth, reaching ₹24.09 billion. The results underscore the challenges of sustaining profitability in the quick commerce sector, with both Blinkit and Instamart facing similar pressures. Analysts suggest that the heavy investment in infrastructure and aggressive marketing strategies are contributing to the current losses.

Read More