Zomato has unveiled its highly anticipated Q2FY25 results, showcasing impressive growth across its food delivery, quick commerce, and going-out businesses. With a robust focus on scaling its operations, the company continues to solidify its position as a market leader in India’s food and e-commerce ecosystem.
In this detailed report, we break down the key highlights, growth figures, and future projections that make Zomato a strong player in the industry.
Key Financial and Operational Highlights
Zomato’s Gross Order Value (GOV) for its B2C businesses surged by 55% year-over-year (YoY) and 14% quarter-over-quarter (QoQ), reaching ₹17,670 crore in Q2FY25. Even without factoring in the impact of acquiring Paytm’s entertainment ticketing business, GOV still showed strong growth at 53% YoY and 13% QoQ.
Major Performance Drivers:
- Food Delivery GOV: Up 21% YoY and 5% QoQ, reflecting consistent demand in the core food delivery service.
- Quick Commerce (Blinkit): A stellar performance with 122% YoY and 25% QoQ growth, indicating surging consumer interest in rapid grocery and daily essentials deliveries.
- Going-Out GOV: An impressive 171% YoY growth and 46% QoQ, thanks to Zomato’s acquisition of Paytm’s entertainment ticketing platform. Excluding the acquisition, going-out GOV still grew by 139% YoY and 29% QoQ.
- Hyperpure (B2B Business): Recorded a revenue increase of 98% YoY and 22% QoQ, driven by its focus on supplying fresh produce to restaurants.
Consolidated Adjusted Revenue and Profitability
Zomato’s consolidated adjusted revenue grew by a substantial 58% YoY, reaching ₹5,127 crore, mirroring the rise in GOV across its businesses. This growth aligns with the company’s aggressive expansion strategy and operational enhancements.
On the profitability front, Adjusted EBITDA increased by ₹289 crore YoY, achieving ₹330 crore in Q2FY25. This increase reflects improvements in margins across Zomato’s key business verticals, despite ongoing infrastructure investments.
From the perspective of Akshant Goyal, CFO of Zomato, “the company experienced significant growth across its B2C businesses in Q2FY25, with Gross Order Value (GOV) reaching ₹17,670 crore, marking a 55% year-over-year increase. This growth was driven primarily by the strong performance in food delivery, quick commerce, and going-out services. Goyal noted that consolidated adjusted revenue increased by 58% year-over-year, reflecting GOV trends. Despite substantial investments in new infrastructure and store expansions, Zomato’s adjusted EBITDA improved by ₹289 crore, reaching ₹330 crore during the quarter.”
Blinkit’s Rapid Growth and Challenges
Zomato’s quick commerce segment, Blinkit, continues to see rapid expansion. The store count nearly doubled in the past year, with newly launched stores achieving ₹7 lakh GOV per day in their first full quarter, reaching contribution break-even.
Despite this impressive growth, margins have not yet expanded at the aggregate level, largely due to investments in new stores and backend infrastructure, such as warehouses. In Q2FY25, Zomato added 152 net new Blinkit stores and 7 warehouses, with ramp-up times affecting short-term profitability.
In the view of Albinder Dhindsa, CEO of Blinkit, “the best metric to assess store performance is GOV per day per store. Dhindsa explained that when Blinkit serves customers effectively, it leads to an increase in GOV from the same store. He highlighted that the company’s new stores have been reaching ₹7 lakh of GOV per day in their first full quarter post-launch, significantly contributing to overall profitability.”
Consistent Growth in the Food Delivery Segment
Zomato’s food delivery business continues its steady trajectory, delivering 20%+ YoY growth in GOV, with profit margins remaining stable. The company has made strides in improving operational efficiency while ensuring customer satisfaction through prompt service and a broad restaurant partner base.
Akshant Goyal noted, “Our food delivery business remains steady and continues to grow well.”
New District App Set to Launch
Zomato is preparing to launch its new District app within the next four weeks, which will cater to its growing going-out business and integrate the recently acquired entertainment ticketing platform from Paytm. This move underscores Zomato’s commitment to diversifying its service offerings beyond food delivery.
As per Deepinder Goyal, Founder & CEO of Zomato, “the company’s priority is ensuring a seamless migration from the Zomato and Paytm platforms to the new District app, which is set to launch soon. Goyal expressed excitement about the app’s potential in further expanding Zomato’s going-out business.”
Cash Balance and Capital Strategy
Zomato’s cash balance decreased by ₹1,726 crore during the quarter, primarily due to its ₹2,014 crore acquisition of Paytm’s entertainment ticketing business. Despite this, Zomato remains financially robust, with plans to raise additional capital to enhance its balance sheet in a competitive landscape.
Capital Raising Strategy
Zomato has seen its annualized adjusted revenue grow 4x since its IPO in July 2021, from ₹4,640 crore to ₹20,508 crore today. The capital raise is aimed at maintaining competitiveness, improving service quality, and bolstering its cash reserves amid market expansion.
Deepinder Goyal reiterated, “We believe capital alone does not guarantee success. Service quality is the key determinant, but it’s essential to ensure we have a level playing field with competitors who continue to raise capital.”
No New Acquisitions Planned, Focus on Core Growth
Zomato reassured investors that despite its strong financial position, there are no immediate plans for further acquisitions or minority investments. The company remains focused on expanding its quick commerce and food delivery services, ensuring profitability while strengthening its market share.
Environmental, Social, and Governance (ESG) Updates
There were no significant ESG updates for Q2FY25. However, Zomato continues to prioritize sustainability initiatives and responsible business practices, aligning with industry standards and investor expectations.
Conclusion: Strong Outlook for the Future
Zomato’s Q2FY25 results reflect its ability to drive growth across multiple verticals while maintaining a strong financial foundation. With the launch of the District app and ongoing expansion of Blinkit and Hyperpure, Zomato is well-positioned for long-term success.
As Zomato continues to innovate and expand its offerings, the company remains optimistic about its future, leveraging additional capital to enhance competitiveness and ensure sustained growth in India’s fast-growing food and quick commerce sectors.
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