BENGALURU: Online food delivery platform Zomato on Monday posted Rs 185.7 crore consolidated net loss in the first quarter of this fiscal compared to a loss of Rs 356.2 crore in the same quarter last year.
Its consolidated revenue from operations in the June quarter stood at Rs 1,413.9 crore, an increase of 67% as against Rs 844 crore in the year-ago period.
Its food delivery business has hit break-even in the first quarter. “On the profitability front, the food delivery business hit an important milestone last quarter by getting to adjusted EBITDA break-even,” said Zomato CFO Akshant Goyal.
Though Zomato didn’t share any detail about the idea of a parent entity ‘Eternal’ in the results announcement, according to sources, the company has been discussing the same and the idea is in preliminary stages. Also, the firm will have multiple CEOs running each of its businesses.
Apart from its delivery and dining out business, it has Blinkit, Hyperpure and Feeding India, and all these verticals will come under one parent entity in near future.
In a post on the company’s Slack, workplace communications tool, Zomato co-founder and CEO Deepinder Goyal reportedly said, “We are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses, all acting as peers to each other, and working as a super team with each other towards building a single large and seamless organisation.”
Zomato is in cash conservation mode
Meanwhile, talking about macro headwinds after announcing Q1 results, Goyal said there is a negative impact on the demand side. “On the cost side, the margins are getting negatively impacted due to higher fuel costs and wage inflation. The overall efficiency gains have helped us make good progress on improving contribution margins,” he said. He said that there is no plan to make any more minority investments as the company is in cash conservation mode.
“Our focus on profitability has sharpened over the past few months with the change in market context, without compromising our focus on growth,” Goyal added. In terms of monthly transacting customers, it has increased by 36% YoY to 16.7 million in Q1FY23 as against 12.3 million in the year-ago period.