Zomato Narrows Losses By 81%, Revenue Jumps To INR 1,112 Cr In Q3 FY22

Foodtech giant Zomato has managed to narrow its loss by 81% in the Q3 of FY22. The Gurugram-based startup has posted a loss after tax of INR 67.2 Cr between October and December of 2021. This is a significant drop from INR 352.6 Cr it incurred as loss in Q3 of FY21. 

This is a further 84.5% drop in loss from INR 434.9 Cr it recorded in Q2 of FY22 i.e., between July to September. 

Zomato in Q3 of FY22 earned INR 1,112 Cr from its operations, a 82.5% jump from INR 609.4 Cr it generated during the same period in FY21. The startup has earned INR 1,024.2 Cr from its operations in Q2 of FY22.

Zomato clocked INR 147.7 Cr from its other sources, thus taking its total income to INR 1,259.7 Cr in Q3 of FY22. 

Deepinder Goyal-led Zomato spent INR 1,642.6 Cr in Q3 of FY22, a 117% rise from INR 755.7 Cr it witnessed in Q3 of FY21. The startup had spent INR 1,601.5 Cr in Q2 of FY22. 

Zomato’s employee benefit expense stood at INR 411.5 Cr, a 2.2X rise from INR 184.5 Cr in Q3 of FY21. In Q2 of FY22, it had spent INR 424.1 Cr in Q2 of FY22. 

Zomato in its quarterly report has also informed that it is setting up its non-banking financial company (NBFC) which will allow Zomato to offer short term credit facilities.

In Q3 of FY22, Zomato had acquired 5.5 Mn new active users, a rise from 3.2 Mn new users. Zomato’s average monthly transacting users stood at 15.3 Mn, an almost 2X rise from 8.4 Mn. Its average monthly active delivery partners too increased to 296 Mn in Q3 of FY22 from 141 Mn in Q3 of FY21.

Zomato has further reiterated that with its $1.7 Bn cash, it will double down on core food business and quick commerce business. Zomato has invested around $225 Mn last year in Blinkit, a quick commerce platform, and B2B logistics platform Shiprocket. It invested in Magicpin too. 

In last quarter, Zomato has further invested in two tech startups — INR 112.20 Cr (around $15 Mn) in adtech company AdOnMo for a 19.8% stake and INR 37.38 Cr (around $5 Mn) in enterprise tech platform UrbanPiper Technologies for 5% stake.

On February 10, Zomato’s shares traded at INR 94.6 when the market closed. 

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