Zomato Turns Profitable: Zomato, the Indian food delivery giant, has turned profitable for the first time in its history. The company reported a net profit of ₹2 crore (~$27,000) in the first quarter of the fiscal year 2024, compared to a loss of ₹186 crore (~$2.5 million) in the same period last year.
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Zomato’s revenue also grew significantly in the first quarter, rising 70% year-over-year to ₹2,416 crore (~$310 million). The company attributed the growth to a number of factors, including increased customer engagement, higher order volumes, and improved pricing.
The strong results were met with a positive reaction from investors, and Zomato’s shares jumped 12% in early trade on Thursday. The stock is now trading at ₹96.23 (~$12.20), up from its IPO price of ₹76 (~$10).
Zomato’s profitability is a major milestone for the company, and it is a sign that the food delivery business is maturing in India. The company is now well-positioned to continue its growth in the coming years.
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Here are some key takeaways from Zomato’s first-quarter earnings:
- The company turned profitable for the first time in its history.
- Revenue grew 70% year-over-year to ₹2,416 crore (~$310 million).
- Customer engagement and order volumes were both up significantly.
- The company is well-positioned to continue its growth in the coming years.
Here are some of the reasons for Zomato’s profitability:
- Increased customer engagement: Zomato’s customer base grew by 30% in the first quarter. This was driven by a number of factors, including the launch of new features, such as Zomato Gold, and the expansion of the company’s delivery network.
- Higher order volumes: The number of orders placed on Zomato’s platform grew by 40% in the first quarter. This was driven by the company’s focus on expanding into new markets and increasing its marketing efforts.
- Improved pricing: Zomato’s average order value increased by 5% in the first quarter. This was due to a number of factors, including the launch of new products, such as Zomato InstaMart, and the increase in the number of premium restaurants on the platform.
Also read: Zomato’s Latest Feature Now Lets You Order from Multiple Restaurants at the same time
The future of Zomato:
Zomato is well-positioned to continue its growth in the coming years. The company has a strong market share in India, and it is expanding into new markets, such as the United Arab Emirates and the United Kingdom. Zomato is also investing in new technologies, such as artificial intelligence and machine learning, which will help it to improve its customer experience.
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