NEW DELHI: Food delivery and hyperlocal e-commerce company Zomato’s consolidated net losses increased 89% year-on-year to Rs 440 crore in the quarter-ended September 2021. Sequentially also, the losses increased 21%.
The adjusted revenue, however, grew 145% year-on-year and 23% quarter-on-quarter to Rs 1420 crore during the quarter. Adjusted EBITDA loss increased to Rs 310 crore in September 2021 quarter as compared to Rs 170 crore in the previous quarter (Q1 FY22) and Rs 70 crore in the second quarter of last year.
The company’s expenses also trebled year-on-year to Rs 1,602 crore in the second quarter this year compared to Rs 585 crore last year. In the first quarter, the company’s expenses were to the tune of Rs 1,260 crore. According to a statement from Zomato, the losses went up during the quarter due to investments in the growth of the food delivery business.
“Three reasons to be specific –increased spending on branding and marketing for customer acquisition; increased investments and growing share of smaller/emerging geographies in our business (which are less profitable today compared to more mature cities); and increased delivery costs due to unpredictable weather and increase in fuel prices,” says the company, which got listed earlier in July this year.
Meanwhile, the company today announced two acquisitions -- one in hyperlocal commerce space and another in the logistics solution technology space. It acquired 8% stake in Bigfoot Retail Solutions Pvt Ltd for Rs 557 crore and 16% in Samast Technologies Pvt Ltd for Rs 371 crore.