Zomato, a company that offers food delivery services, reported its consolidated net loss for the three months ended September 2022 at Rs 250.8 crore as opposed to Rs 434.9 crore for the same period the previous year on November 10.
According to a report with the exchange, its operating revenue increased 62.20 percent, from Rs 1,024.2 crore in the same period last year to Rs 1,661.3 crore this quarter.
According to the company, “adjusted” EBITDA loss rose to Rs 192 crore in Q2FY23 from Rs 150 crore in Q1FY23. The accumulation of quick commerce losses is what caused the loss to increase.
The average order value (AOV) and order volume (OV) both increased in the food delivery industry, contributing to the gross order value (GOV) growth of 3% QoQ and 23% YoY. An increase in revenue per order resulted in greater adjusted revenue growth (for food delivery) of 8% QoQ and 27% YoY.
According to Zomato, the contribution margin increased from 2.8 percent in the first quarter to 4.5 percent in the second. The adjusted EBITDA for food delivery reached break-even in Q2 as a result.
“The increase in contribution margin is driven by improvements on both cost and revenue side. This has been the result of scale and heightened focus on profitability over the last few quarters. In our view, none of these improvements in contribution margin is temporary in nature,” said Akshant Goyal, Chief Financial Officer, Zomato.
GOV for Blinkit, which Zomato acquired in August of this year, increased 26 percent quarterly to Rs 1482 crore while sales increased 44 percent quarterly. Quick commerce’s adjusted EBITDA loss decreased from Rs 326 crore in the preceding quarter to Rs 259 crore.