Zomato, the food delivery company, announced a reduction in losses in the March quarter, with consolidated net loss narrowing to Rs 188 crore from Rs 360 crore a year ago, and consolidated revenue increasing by 70% YoY to Rs 2,056 crore. The company aims to achieve profitability across its entire business, including Blinkit, within the next four quarters.
In FY23, Zomato’s loss decreased to Rs 971 crore from Rs 1,209 crore in the previous year, while revenue surged by 69% to Rs 7,079 crore. The mainstay food delivery business reported a revenue of Rs 1,530 crore, compared to Rs 1,284 crore a year ago. The B2B vertical witnessed a significant revenue increase to Rs 478 crore from Rs 194 crore, and the Blinkit business reported a revenue of Rs 363 crore.
Zomato’s CEO, Deepinder Goyal, expressed confidence in achieving profitability, stating, “We promised this in Aug ’22 and have delivered: Zomato is adjusted EBITDA positive in Q4FY23. Next up, we aim to make the entire biz (including Blinkit) profitable within the next 4 quarters. I’m 9/10 confident of achieving this.” The company aims to expand the adjusted EBITDA margin to the stated goal of +4-5% of GOV, which would result in an annual cash operating profit of Rs 1,000-1,300 crore at the current scale of the food delivery business.
Zomato’s financial results exceeded expectations, with the net loss being lower than the estimated Rs 356 crore and revenue slightly lower than the estimated Rs 2,122 crore. The company plans to continue its growth trajectory and pursue profitability as it expands its operations.
The positive financial performance indicates progress towards Zomato’s goal of achieving sustainable profitability and highlights its position as a major player in the food delivery industry.