Zomato’s fourth-quarter results for the financial year 2023-24 showcase significant growth driven by both food delivery and quick commerce segments. The company reported a profit of Rs 175 crore compared to a loss of Rs 189 crore in the corresponding quarter of the previous fiscal year. Revenue from operations surged by 73.2 percent year-on-year to reach Rs 3,562 crore, indicating robust expansion.
Zomato attributed its strong performance to a 28 percent year-on-year growth in Gross Order Value (GOV) in the food delivery segment, fueled by a 5 percent increase in Average Order Value (AOV) and a 23 percent rise in order volume. The company noted that its year-on-year topline growth accelerated to 61 percent, surpassing its stated outlook of 40 percent. This growth was primarily propelled by robust expansion in both food delivery and quick commerce.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 194 crore, reflecting continued bottom-line expansion. Margin expansion was evident in both food delivery and quick commerce segments, with the latter achieving adjusted EBITDA breakeven in March 2024. Zomato outlined plans for rapid store expansion in the quick commerce business, aiming to reach 1,000 stores by March 2025.
Blinkit, a subsidiary of Zomato focusing on quick commerce, reported impressive performance with revenue soaring by 111.8 percent year-on-year to Rs 769 crore. Blinkit’s EBIT turned positive at Rs 2 crore compared to an EBIT loss of Rs 179 crore in Q4FY23. The quick commerce business witnessed a 97 percent year-on-year growth in GOV, driven by store expansion.
Blinkit added 75 net new stores in Q4FY24, totaling 526 stores, with plans to add another 100 stores in Q1FY25, aiming for 1,000 stores by the end of FY25. Albinder Dhindsa, Founder & CEO of Blinkit, emphasized the importance of store expansion and enhancing the platform’s utility for customers. The company aims to maintain its edge in quality and innovation to stay ahead of the competition.
