“The growth momentum we witnessed in Q1FY24 continued in Q2FY24 driven by healthy growth across all our businesses,” founder and CEO Deepinder Goyal said in a letter to shareholders on Friday.
The company’s total revenues increased by 67% year-on-year to Rs 3,060 crore during the September quarter which were just about enough to make up for the expenses which stood at Rs 3,039 crore in the quarter, aiding its profitability. Revenue from operations shot up to Rs 2,848 crore in Q2FY24 from Rs 1,661 crore in the year-ago quarter. The company’s growth was helped by robust consumer demand for its core food delivery business.
“Food delivery GOV (gross order value) grew 20% y-o-y and is recovering well from the demand slowdown we witnessed in the last two quarters of FY23. A visible uptick in demand coupled with some great execution by the team led to the robust growth in order volumes,” the firm said. The increased adoption of Zomato’s Gold programme also drove higher ordering frequency, adding to the growth of the food delivery segment.
Zomato’s quick commerce arm Blinkit is growing well in each of the cities it currently services, Goyal claimed. “In fact in some of these cities, Blinkit’s GOV is already more than Zomato’s GOV. At this pace, where Blinkit’a GOV is growing 80%+ y-o-y, we wouldn’t be surprised if Blinkit’s GOV becomes multiple times larger than Zomato’s GOV in overlapping cities, which will more than compensate for the wider geographical footprint of Zomato,” Goyal said.
Blinkit’s GOV stood at Rs 2,760 crore in Q2. Zomato said that the festive period is driving a much stronger growth for quick commerce compared to food delivery and with major festivals like Diwali lined up in the December quarter, the firm expects Blinkit to deliver another high growth quarter.