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Swiggy rival Zomato profit falls 57% to Rs 59 crore in Q3FY25; revenue jumps 64% to Rs 5,405 crore

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ISN Team
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Zomato CEO Deepinder Goyal

Deepinder Goyal-led food delivery giant Zomato, which competes with Swiggy, has reported a 57.24% drop in its net profit to Rs 59 crore for the quarter ended December 2024 (Q3 FY25). The figure stood at Rs 138 crore in the same period a year earlier, according to a regulatory filing.

Despite the profit decline, Zomato’s revenue soared 64% to Rs 5,405 crore in the same period, up from Rs 3,288 crore a year ago.

Impact of Blinkit and store expansions

Zomato attributed much of its rising costs to efforts aimed at growing Blinkit, its quick commerce service that delivers groceries and essentials within minutes. Akshant Goyal, chief financial officer (CFO) at Zomato, noted that as the company rapidly expands its store network, near-term profits may remain under pressure for the next one or two quarters. 

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He said these investments are expected to fuel gross order value (GOV) growth of over 100% through FY25 and FY26, especially as more of Blinkit’s stores become fully operational.

Blinkit contributed Rs 1,399 crore to Zomato’s revenue in the quarter, more than double the Rs 644 crore it recorded a year ago. Yet the quick commerce division reported an EBITDA loss of Rs 30 crore, compared to an EBITDA profit of Rs 48 crore in the year-ago period.

Blinkit’s net loss stood at Rs 103 crore. The Gurugram-based company also said that it added 368 net new Blinkit stores and expanded its warehouse space by 1.3 million square feet over the past two quarters, further affecting short-term margins.

Growth in food delivery and other segments

While its primary food ordering and delivery business accounted for Rs 2,072 crore in revenue, Zomato’s B2B vertical Hyperpure, which supplies produce and ingredients to restaurants, contributed Rs 1,671 crore.

The “going-out” segment, which helps users discover restaurants and entertainment events, also saw healthy growth with Rs 259 crore in revenue. Overall, the company’s total expenditure jumped 64% year-on-year to Rs 5,533 crore in Q3.

Delivery and related charges made up Rs 1,450 crore, while purchasing stock cost Rs 1,500 crore. Zomato spent Rs 521 crore on advertising and promotions during the quarter.

Recent developments

Last week, Zomato infused Rs 500 crore (about $60 million) into its quick commerce service, Blinkit, bringing its total investment in the platform to Rs. 2,800 crore since acquiring it in August 2022. 

Notably, it also became the first Indian startup to join the Bombay Stock Exchange’s (BSE) Sensex 30, replacing JSW Steel Ltd in the index of India’s top 30 companies.

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