NEW DELHI: As expected, Zomato continues to report losses. The food tech firm’s consolidated net loss in September quarter (Q2FY23) narrowed to Rs 251 crore from Rs 430 crore a year ago quarter. However, the losses grew 35% sequentially as Zomato had reported a loss of Rs 186 Crore in the June quarter (Q1FY23).
This surge can be attributed to Blinkit’s acquisition. Zomato’s revenue from operations grew by 62.20% YoY to Rs 1,661 crore in Q2FY23. The same stood at Rs 1,414 crore in Q1FY23. The firm’s total expenses surged 31% to Rs 2,091 crore in Q2FY23 from Rs 1,602 crore in the year-ago quarter. Zomato completed the acquisition of quick commerce firm Blinkit in August.
Hence, its earnings include about 50 days of Blinkit’s financials in the consolidated numbers. Adjusted for Blinkit, the revenue grew 48% YoY, which translates to annualised revenue of $ 1.05 billion. This is the first quarter when Zomato crossed the billion-dollar annualized revenue mark, the company said.
Zomato said that ‘Adjusted EBITDA’ loss reduced to Rs 192 crore as compared to Rs 310 crore in Q2FY22. It added that adjusted EBITDA loss (ex-quick commerce) was Rs 60 lakh for the quarter compared to Rs 150 crore in the previous quarter Q1FY23). Zomato expects the adjusted operating loss to come down further and eventually get to break-even in the next 2 to 4 quarters.
On the Rs 4,447 crore acquisition of loss-making Blinkit, co-founder and CEO of Zomato Deepinder Goyal, said, “I know that most investors currently ascribe zero value to the Blinkit business, and that’s understandable. But I am confident this will change in due course of time.”