In a major financial milestone, Zomato reported a consolidated net profit of ₹176 crore in the second quarter of FY25, representing an astounding 389% year-on-year growth compared to ₹36 crore in the same period last year. This growth reflects Zomato’s strategic expansion across multiple verticals and a tightening grip on operational efficiency, especially in the face of mounting competition from rivals like Swiggy.
Revenue and Profit Surge:
Zomato’s revenue from operations also experienced a sharp increase, rising from ₹2,848 crore in Q2 FY24 to ₹4,799 crore in Q2 FY25, a robust growth of 68%. The company attributed this growth to its core food delivery business, which saw a 21% increase in adjusted revenue year-over-year. Zomato’s adjusted EBITDA climbed to ₹331 crore, compared to just ₹41 crore in the same period last year, showcasing a solid turnaround in profitability.
Fundraising Initiative:
Adding to the positive momentum, Zomato’s board approved a significant fundraising plan of up to ₹8,500 crore through a Qualified Institutional Placement (QIP) of equity shares. This is a strategic move to further solidify its financial position, especially with increased competition from Swiggy, which is set to launch its own IPO soon. Zomato’s leadership emphasized that the funds would enhance their cash reserves and maintain competitiveness in the market.
Going-Out Segment and App Launch: Zomato has also been focusing on its “Going Out” segment, which includes dining, movie ticketing, and live events. The company’s acquisition of Paytm’s movie and ticketing business for ₹2,048 crore is expected to bolster this offering. The upcoming launch of Zomato’s new app, “District,” is seen as a pivotal moment, consolidating these services into a single platform. CEO Deepinder Goyal has expressed confidence in the company’s growth trajectory, hinting that the app will go live in the next four weeks.
Conclusion:
Zomato’s Q2 performance not only reflects the company’s operational improvements but also positions it for future growth through strategic acquisitions and its upcoming fundraising efforts. With an increased focus on its quick-commerce and going-out segments, Zomato is navigating an increasingly competitive landscape with strong financial backing.
Source: This article is based on information from Outlook Business and Rediff Business.
Key Highlights:
- Zomato’s net profit for Q2 FY25 surged by 389% to ₹176 crore.
- The company’s revenue grew from ₹2,848 crore in Q2 FY24 to ₹4,799 crore in Q2 FY25.
- Zomato’s board approved a ₹8,500 crore fundraising plan via Qualified Institutional Placement (QIP).
- Zomato is launching a new app, “District,” to consolidate its movie ticketing and event services.
