Zomato District: Another Blinkit-Like Revenue Machine?

Zomato District: Another Blinkit-Like Revenue Machine?

SUMMARY

Taking inspiration from Blinkit’s success story, Zomato plans to launch going out business under a new name and app, District, to seize cross-selling opportunities

Per sectoral experts, the new app will not have to struggle for users, as Zomato has a wide base of loyal customers, who will happily embrace its new app

While the company may bloat its advertising expenses by around 8-10% for the next few quarters to promote the app, experts do not see any significant impact on its overall profitability

Two years ago, doubts of many shrouded Deepinder Goyal’s decision to acquire the struggling quick commerce startup Blinkit (Grofers earlier). Today, Zomato has proven them wrong.

Well, for starters, while the gross order value (GOV) of its three B2C verticals — food delivery, quick commerce, and going out — grew 53% year-on-year (YoY) in the last quarter (Q1 FY25), Blinkit alone surged 130% YoY.

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