According to the Economic Times, India’s e-commerce sector is experiencing remarkable growth, projected to surge from $123 billion in 2024 to $300 billion by 2030. With over 950 million internet users and a growing base of online shoppers expected to reach 500-600 million by 2030, this market is rapidly transforming the retail landscape.
With a market capitalization of Rs 2.92 lakh crore, the shares of Zomato Ltd were trading at Rs 303.45 per share, increasing around 0.15 percent as compared to the previous closing of Rs 303.00 apiece.
Financial performance:-
The company’s revenue surged 68%, increasing from Rs 2,848 crore in Q2FY24 to Rs 4,799 crore in Q2FY25. However, the net profit zoomed by 389%, jumped from Rs 36 crore to Rs 176 crore, indicating strong revenue and profitability growth. same period.
Revenue Split:-
In Q2FY25, Zomato’s total segment revenue reached ₹4,799 crore in Q2FY25, a 389% increase from ₹2,848 crore in Q2FY24. The majority of revenue, 42%, came from the food ordering and delivery segment, followed by Hyperpure supplies at 31%, Quick commerce at 24%, Going Out at 3%, and other sources contributing the remaining 0.08%.
Market Insights:-
Zomato faces rising quick commerce competition, including Flipkart’s entry. CFO Akshant Goyal stresses prioritizing Zomato’s business over competitors. Operating at full capacity, Zomato achieved impressive year-on-year growth of 120%-130%, reflecting its focus on scaling amidst an increasingly competitive landscape.
Expansion Strategy:-
Zomato expanded by launching in new cities, adding 152 stores and seven warehouses, with most capex directed to this growth. While focusing on the top eight cities, it cautiously explores newer markets, prioritizing market viability and depth to strengthen its strategic presence.
Quick Commerce Developments:-
Zomato’s quick commerce AOV rose to ₹660 due to weather and expanded assortment, supported by larger dark stores and infrastructure upgrades. Blinkit is diversifying into categories like beauty, electronics, and toys, prioritizing backend enhancements and customer experience improvements.
Management Insight:-
Management is optimistic about growth despite economic challenges, noting no impact on the food delivery segment. They remain cautious about discounting, avoiding increases post-capital raise. Profitability is set to improve as the quick commerce learning curve flattens, enhancing operational efficiency.
International presence:-
The company has an international presence in 23 countries, including the UAE, Australia, New Zealand, the Philippines, Indonesia, Malaysia, the USA, Lebanon, Turkey, the Czech Republic, Slovakia, and Poland.
Company Profile:-
Zomato Limited serves as an Internet site that connects users, restaurant partners, and delivery partners. The Company also provides a platform for restaurant partners to market themselves to their target audiences in India and overseas, as well as supply ingredients to restaurant partners.
Written by:- Abhishek Singh
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