After years of losses, Zomato posts profit for first time
What's the story
Zomato, India's online food delivery giant, has achieved its first-ever quarterly profit in Q1 2023, reporting a net profit of Rs. 2 crore.
The company's revenue skyrocketed by 70.9% YoY to Rs. 2,416 crore. In the same quarter last year, Zomato had recorded a Rs. 186 crore net loss.
This milestone marks a major accomplishment for Zomato.
What Next?
The firm expects to remain profitable for foreseeable future
Zomato has been very vocal about achieving profitability in FY24. The company, however, expected to do so in the September quarter.
Cooling inflation and the strength of its loyalty program helped Zomato achieve profitability. The firm expects to remain profitable for the foreseeable future.
Zomato believes it can deliver 40% YoY topline growth for at least the next two years.
Details
Blinkit achieved profitability for the first time in June
The food ordering and delivery business contributed 56.8% of Zomato's operating revenue.
Its B2B business Hyperpure and quick commerce service Blinkit were also major contributors to revenue. Blinkit achieved profitability for the first time in June 2023.
The company aims to achieve an adjusted EBITDA breakout in the quick commerce business within the next four quarters.