Zomato, India’s leading food delivery platform, reported its financial results for the third quarter ending December 31, 2024. The company experienced a 57% decline in net profit, amounting to ₹59 crore, down from ₹138 crore in the same period the previous year. This decrease is primarily attributed to increased expenditures related to the expansion of its quick commerce platform, Blinkit.
Despite the drop in profit, Zomato’s revenue from operations surged by 64%, reaching ₹5,405 crore compared to ₹3,288 crore in the corresponding quarter of the prior year. This growth was bolstered by a nearly 22% increase in revenue from its core food delivery business and a more than twofold rise in Blinkit’s reven
The expansion of Blinkit has exerted pressure on Zomato’s margins. The segment’s adjusted core loss widened to ₹103 crore from ₹89 crore in the same quarter last year, despite a surge in orders. Blinkit, holding a 46% market share in India’s quick commerce sector, faces intense competition from Swiggy’s Instamart, Zepto, Flipkart, and Tata Group’s BigBasket. To strengthen its position, Zomato plans to increase the number of Blinkit stores to 2,000 by December 2025.
Following the announcement of these results, Zomato’s shares declined by 3.6%.
By – kartik
