Zomato September quarter results: Revenue jumps as orders spike
It generates most of its revenue from food delivery and related fees it charges restaurants for using the company`s platform.
Zomato Ltd on Wednesday reported quarterly revenue that more than doubled as orders on its food delivery business zoomed, while higher expenses caused losses to balloon.
The Gurugram-based company also said it was investing in logistics-tech firm Shiprocket, savings app Magicpin and fitness firm CureFit and added it will invest $1 billion more over the next 1-2 years, with a large chunk likely going into the quick-commerce space.
Zomato`s gross order value rose 158% for the reported quarter to Rs 54.1 billion from a year earlier, while revenue from operations jumped 140.2% to Rs 10.24 billion.
It generates most of its revenue from food delivery and related fees it charges restaurants for using the company`s platform.
However, the company reported a wider loss for the quarter ended Sept. 30, hurt by a steep rise in branding and marketing expenses.
"While this resulted in our losses expanding further, we believe this was a great opportunity to double down on expanding our user base cost efficiently," Zomato said in a statement.
Consolidated net loss for the food delivery company was 4.30 billion rupees ($57.85 million) for the second quarter, compared with a loss of 2.30 billion rupees a year earlier.
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