Online food delivery and restaurant discovery platform also cut losses by around 48% sequentially, from Rs 359.70 crore in the fourth quarter of last year, the company said in a filing to BSE on Monday evening.
Quarterly revenue from operations reached Rs 1,413.9 crore in the quarter ended June 30, a jump of 67% from the year-ago period.
“The real driver here is focus and mindset,” co-founder and chief executive Deepinder Goyal wrote in a letter to shareholders, citing his 15% quarter-over-quarter increase in adjusted food delivery revenue, which is a sum of transaction revenue and customer delivery charges. .
Chief Financial Officer Akshant Goyal said
The food delivery business of “received a significant milestone last quarter by reaching breakeven at Adjusted Ebitda (earnings before interest, taxes, depreciation and amortization).”
Adjusted EBITDA (as a percentage of gross order value) in the food delivery business was -1.3% and -2.2% in the March and December quarters, respectively.
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Zomato defines Adjusted Ebidta as Ebidta minus share-based payment expenses.
Deepinder Goyal said the company has been emphasizing profitability over the past few months with the changing market backdrop, without compromising growth.
“We do this by evaluating everything with critical purpose and allocating resources with a long-term view of sustainable growth, as well as earnings,” he said in a post-earnings report Monday.
Revenue from business-to-business (B2B) restaurant supply business Hyperpure rose 40% to Rs 272.7 crore from Rs 194.2 crore in the previous quarter.
Akshant Goyal said that the company has established quality infrastructure in many cities resulting in rapid business growth.
“…over time, Hyperpure could become a much bigger business than just supplying restaurants. As we grow into fast-paced commerce, the capabilities we’ve built into Hyperpure will also come in handy,” a- “As we expand across all of our existing cities and add a few more, we should see continued revenue growth as well as improved margins,” the CFO said.
Sequentially, Zomato’s total quarterly expenses increased slightly to Rs 1,767.7 crore from Rs 1,701.7 crore, due to several factors including an increase in advertising and sales promotion, purchase of commercial stock and delivery and related charges.
Overall, the company’s revenue increased to Rs 1,582 crore in the April-June period from Rs 1,350 crore in the previous quarter.
The monthly average number of Zomato transacting customers increased to 16.7 million, and the monthly average of active restaurant partners was 208,000.
Deepinder Goyal also criticized the alleged poor corporate governance of the Blinkit acquisition and the valuation at which Zomato agreed to buy it.
He said the deal had undergone extensive due diligence and had been approved by several external stakeholders, including EY and Morgan Stanley, who reviewed the deal’s valuation and fairness, respectively.
Zomato acquired fast trading platform Blinkit in a Rs 4,447 crore deal, which 97% of its voting shareholders approved last month.
The super-fast delivery platform is expected to end July with revenue of Rs 74.9 crore, up nearly 30% from May.
While its average order value has increased, order frequency on the platform has decreased.
“We negotiated hard on the valuation but at the same time we had no intention of being opportunistic because it’s important to be fair to the team on the other side who are going to build this business going forward. “, wrote Goyal in the letter.
On the alleged conflict of interest and poor governance of Zomato, given that Akriti Chopra, co-founder and HR director of Zomato, is the wife of Blinkit founder Albinder Dhinsda, Deepinder Goyal said that Chopra was not unaware of the discussions or decisions regarding the probationary year transaction.
According to him, knowing the founder of the company he is acquiring was actually a good thing because it “significantly increases the chances of a successful transaction and reduces blind spots that could lead to value destruction after the transaction is completed. “.
“I would never take such a big bet on people whose motives I don’t know,” he added.
Last year, Zomato said it would invest up to $1 billion in startups over the next 2-3 years, with a large share in fast-paced businesses.
“We understand the feedback we receive from our shareholders on our decisions. We stand by all the decisions we have made in the past, and we see that we derive considerable strategic value from these long-term investments,” said Deepinder Goyal. “That said, there are no plans to make any further minority investments as we are in cash conservation mode and are busy executing what we already have on our plates right now.”