BENGALURU: Keeping in mind its long-term growth strategy, food delivery company Zomato is ‘shutting down or divesting’ it’s non-core businesses to focus on hyperlocal ecommerce system.
It sees an opportunity to grow the food delivery market at least 10x over the next few years, and is planning to invest over $50 million in Hyperpure (B2B supplies for restaurants) in the next 18-24 months, the company said a a blog post.
This is evident as revenue from Hyperpure grew by 49% QoQ to Rs 1.1 billion in Q2 FY22. Hyperpure is now present in 8 cities and it supplied to over 12,000 restaurants every month on an average in Q2 FY22.
The company, whose losses widened to Rs 435 crore in the second quarter, said it is divesting or shutting down non-core businesses that contributed less than 1% to its Adjusted Revenue and 13% to its Adjusted EBITDA loss in Q2 FY22.
As part of its strategy, Zomato will sell Fitso to Curefit for $50 million and the company will get a cumulative shareholding worth $100 million in Curefit. This will help the company explore cross-selling benefits.
After shutting its direct-to-consumer experiment in Nutraceuticals, it is now backing B2B logistics-tech company Shiprocket by investing over $75 million.
It will also invest $50 million in magicpin, which drives omni-channel growth for local retailers. Earlier in September, it closed overseas subsidiaries- Zomato UK and Zomato Media in Singapore.
The company had shut its US subsidiary and sold its stake in NexTable in August this year.
Zomato’s business is at the confluence of food and hyperlocal e-commerce. Zomato Founder and CEO Deepinder Goyal (In picture) said in the company’s blog post, “Our hyperlocal delivery feet is now over 3 lakh delivery partners strong on a monthly active basis. We believe that our last mile feet is a strong moat.”