Zomato’s Q2 loss widens, delivery cost rise hurts
Online food delivery platform Zomato on Wednesday, November 11 declared that its consolidated loss widened to Rs 430 crore for the quarter that ended on September 30, and increased delivery cost was one of the main reasons. The company, which went public recently, had posted a loss of Rs 229 crore in the same period last year.
The losses increased due to investments in the growth of its food delivery business.
However, the company does not expect further increase in the delivery cost in immediate future.
Adjusted revenue for Zomato stood at Rs 1,420 crore ($189 million), a 22.6% growth (on-quarter) and 144.9% growth (on-year).
Overall customer traffic on Zomato in India increased to 59 million average monthly active users (India MAU) in Q2 FY22, as compared to 45 million in Q1 FY22.
Meanwhile, Zomato has invested $75 million in Bigfoot Retail Solutions Pvt Ltd (Shiprocket) for a 8% stake as part of a larger $185 million round.
Shiprocket is a B2B logistics-tech company that enables online commerce by providing seamless shipping and fulfillment services to direct-to-consumer (D2C) brands and omni-channel sellers.
Zomato is also in the process of selling Fitso to Curefit for $50 million. The company had earlier invested $100 million in Grofers.
Zomato is seeing a 30% higher ordering frequency and significantly higher contribution margin in cities which have a meaningfully higher restaurants per 100k customers’ metric.
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