Zomato, India’s leading food delivery and quick commerce platform, showcased strong revenue growth in the third quarter of FY2025. The company’s adjusted revenue surged by an impressive 58%, reaching ₹5,746 crore, driven by the performance of its core food delivery services and its quick commerce arm, Blinkit. However, challenges such as intense market competition and high operational costs impacted net profit, which fell significantly.
Surge in Gross Order Value Propels Revenue Growth
Zomato recorded a 57% year-on-year growth in Gross Order Value (GOV), which climbed to ₹20,206 crore during the quarter ending December 31, 2024. This substantial increase underpinned the company’s robust revenue growth. The food delivery segment alone contributed significantly, with revenue rising 17% to ₹2,413 crore, demonstrating continued demand for its services.
Blinkit: A Rising Star in Quick Commerce
Blinkit, Zomato’s quick commerce subsidiary, emerged as a key growth driver in Q3 FY2025. Its revenue more than doubled, reaching ₹1,399 crore, with its GOV similarly doubling to ₹7,798 crore. Blinkit expanded its operational footprint to 1,007 stores by the end of December 2024, highlighting its aggressive growth strategy. The company aims to operate 2,000 stores by December 2025, accelerating its timeline by a full year.
Hyperpure Shows Exceptional Growth
Zomato’s business-to-business (B2B) arm, Hyperpure, also posted remarkable results. Revenue for this segment surged by an impressive 95%, totaling ₹1,671 crore. This growth reflects the increasing adoption of Hyperpure’s services among restaurant partners, which continues to bolster Zomato’s overall performance.
Net Profit Declines Amid Rising Expenses
Despite the strong revenue growth, Zomato’s net profit fell by 57% year-on-year, dropping to ₹59 crore from ₹138 crore in the same period last year. The decline is primarily due to rising operational expenses linked to Blinkit’s expansion and increasing market competition. Investments in new stores and warehouses to support Blinkit’s growth contributed to an adjusted EBITDA loss of ₹103 crore, up from ₹89 crore in the previous year.
Transitioning Challenges into Opportunities
The company’s focus on scaling Blinkit has created short-term financial strain, but Zomato remains optimistic about its long-term potential. Blinkit’s rapid expansion underscores Zomato’s commitment to capturing a larger market share in India’s burgeoning quick commerce sector. Although higher competition in the food delivery market poses challenges, Zomato continues to innovate and invest in its services to maintain its leadership position.
Strong Financial Position Bolsters Confidence
Zomato ended the December quarter with a robust cash balance of ₹19,235 crore, reflecting its strong liquidity position. The cash reserves were bolstered by net proceeds of ₹8,446 crore from a qualified institutional placement. This financial cushion provides the company with the flexibility to invest in strategic growth areas and navigate market challenges effectively.
Future Outlook
Looking ahead, Zomato’s management remains focused on scaling its operations while maintaining a balance between growth and profitability. The aggressive expansion of Blinkit, coupled with the strong performance of Hyper pure, positions the company for sustained growth. However, managing rising expenses and maintaining profitability in a highly competitive environment will require careful strategy and execution.
