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Deepinder Goyal-led food delivery giant Zomato has announced the launch of 'District,' a new app focused on consolidating its "going-out" business.
The new app will include services such as dining, ticketing for movies and events, sports ticketing, live performances, shopping, and staycations.
The launch is part of Zomato's strategy to expand beyond its core food delivery services, as revealed by CEO Deepinder Goyal in a letter to shareholders.
Expansion beyond food delivery
Zomato’s CEO, Deepinder Goyal, emphasized the company’s intent to tap into a broader array of lifestyle services.
“Today, Zomato and Blinkit are our two large consumer businesses, serving customers' needs at home. However, we also have one of India’s largest 'going-out' businesses, helping our customers discover restaurants for dining out,” Goyal said.
He highlighted that the going-out business already operates at a run-rate of over $500 million in annualized Gross Order Value (GOV) and is profitable.
Competing in the market
The launch positions Zomato in direct competition with established players like BookMyShow, which currently dominates the online movie-ticket booking market in India.
"Building a one-stop destination app for going-out could be a game-changer for each of these use cases, and we intend to do exactly that with our new District app. If we execute this well, we see going-out becoming the third large B2C business emerging out of Zomato," Goyal said.
Zomato's financial performance
Zomato has reported a substantial increase in net profit in the Q1FY25, reaching Rs 253 crore.
This is a remarkable jump from the Rs 2 crore net profit reported in the same quarter last year, which was notably the company's first net profit since its listing in 2021.
The company's revenue increased significantly, increasing by 74% year-on-year to Rs 4,206 crore, compared to Rs 2,416 crore during the same quarter last year.
Gross Order Value (GOV) during the quarter increased by 53% to Rs 15,455 crore, driven by consumer-facing businesses like food delivery, quick-commerce, and going-out.