Zomato has been making big moves in the Indian food delivery market, and if you’re an investor, there’s a lot you need to keep your eye on. The company’s growth is driven by its smart strategies, new ideas, and a growing demand for online food delivery.
In this article, let’s understand what’s been happening at Zomato and why it could be a good investment option for you.
Zomato’s Secret for Success
Zomato’s recipe for success lies in its ability to adapt and expand. After successfully navigating through its initial public offering (IPO) in 2021, Zomato has been focusing on scaling operations, entering new markets, and adding more revenue streams.
This isn’t just about food delivery anymore—Zomato is aiming for a broader business ecosystem that includes dining out, quick commerce (thanks to its acquisition of Blinkit), and other B2B and B2C services.
In the first quarter of FY25, Zomato posted a year-on-year (YoY) adjusted revenue growth of 62%. The company’s gross order value (GOV) from B2C was ₹15,455 crores with a YoY growth of 53%.
Zomato’s growth is driven by the company’s diversified offerings and the rapid expansion of Blinkit, which has now turned EBITDA positive. Blinkit, Zomato’s quick commerce business, has been growing steadily, contributing significantly to revenue as Zomato expands its base.
Financial Numbers Speak
When it comes to numbers, Zomato is growing in a healthy manner. Zomato share price is currently around ₹274.95. As per the company’s FY24 annual report, Zomato reported a revenue of ₹12,114 crores. The company also reported a consolidated PAT of ₹351 crores.
GOV (B2C business) also grew by 48% YoY. These numbers are not only indicative of Zomato’s scale but also its dominance in a fast-growing market.
It reflects how well the company is managing its operational costs while growing its revenue base. Even with continued investments in expanding its businesses, Zomato has managed to keep its margins healthy.
Zomato’s Expansion
One of the biggest growth drivers for Zomato in recent quarters has been its entry into quick commerce through Blinkit. This sector focuses on delivering groceries and essential items within minutes, tapping into a fast-evolving consumer market.
For Zomato, Blinkit is a strategic move that complements its food delivery services, allowing it to cater to a wider array of consumer needs. The company has also added over 100 new Blinkit stores, expanding its reach and ability to serve more customers in less time. This segment is expected to contribute even more to Zomato’s revenue in the coming quarters.
Moreover, the company has also been diversifying its business with other notable ventures like Going-out (Zomato Live) and its B2B business called Hyperpure.
Zomato Live is an exciting dining and entertainment platform that allows users to book experiences like live music events, special dining nights, and more. It offers a more interactive way for users to engage with restaurants, transforming dining into an event-driven experience, and tapping into the growing trend of experiential dining.
On the B2B side, Zomato operates Hyperpure, a farm-to-fork supply chain platform that caters to restaurants. Hyperpure focuses on providing fresh, high-quality ingredients directly from farmers to businesses, ensuring better pricing and quality control.
This segment has been growing steadily and contributed significantly to Zomato’s revenue in FY24, generating ₹3,172 crores. Hyperpure is essential not only for Zomato’s financial growth but also for supporting the restaurant ecosystem by providing affordable, quality ingredients.
All of these ventures align with Zomato’s mission to expand its footprint beyond traditional food delivery and create a more comprehensive food ecosystem.
Conclusion
Zomato has shown that it’s much more than just a food delivery app—it’s a powerhouse with multiple revenue streams and ambitious growth plans. The company has a clear vision for the future and it offers a lot of promise for investors.
If you are someone who wants to invest in a company that operates in a competitive industry, Zomato would be the right option for you. Make sure that you use a brokerage calculator before using any platforms to start investing.