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Zomato Widens Its Net Loss, Reports Over Four-fold Increase

The company's Ebitda (earnings before interest, taxes, depreciation, and amortisation) deficit has plunged down to Rs 366.2 crore from Rs 488.8 crore during the same period last year

Mostly because of a general slowdown in the food delivery market, Zomato, a  food delivery aggregator, reported a four-fold increase in its net loss from Rs 63.2 crore to Rs 346.6 crore year over year. Revenue for the company increased 75 per cent from Rs 1,112 crore to Rs 1,948 crore.

As a result, the aggregator's gross order value (GOV) increased on a sequential basis by 0.7 per cent but increased by 21.5 per cent annually to reach Rs 6,680 crore.

Zomato's management said in a statement, “We have seen an industry-wide slowdown in the food delivery business since last October (post Diwali). The trend has been seen across the country but more so in the top 8 cities.”

According to the media reports, the company's Ebitda (earnings before interest, taxes, depreciation, and amortisation) deficit has plunged down to Rs 366.2 crore from Rs 488.8 crore during the same period last year.

In January, Zomato relaunched its loyalty programme 'Zomato Gold', which is likely to increase its revenue from subscription and is likely to give its revenue a boost in the next quarter.

The company is also in the process of rebranding its ten-minute food delivery service, Zomato Instant, to provide home-styled meals at affordable prices. Expenses remained higher mainly due to higher advertising spends, increase in delivery and related charges and strikingly higher depreciation and amortisation rate. 

The company’s adjusted Ebitda loss, which excludes the recently-integrated Blinkit acquisition, came in at Rs 265 crore against Rs 272 crore in Q3 FY23. Further, Zomato added around 23 million customers in CY22, compared to 23.6 million in CY21. These are customers who have placed at least one order on Zomato in the past year. Moreover, Hyperpure, one of Zomato's main business units, saw a 1.7x increase in sales to Rs 421 crore in Q3FY23.

The management of the company expects that the short-term effects of the reinstatement of Zomato Gold will be mitigated by improvements in other revenue and fixed and variable cost drivers. We anticipate being able to turn Zomato Gold profitable in the long run, company added.


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