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Zomato loss widens to Rs 430 cr
Photo Credit: 123RF.com

Online food delivery giant Zomato Ltd's consolidated loss widened to ₹430 crore for the quarter ending September against a loss of Rs 229 crore a year ago. The company posted a loss of ₹356 crore in the June quarter.

Zomato attributed the losses to investments in the growth of food delivery business, increased spending on branding and marketing for customer acquisition. The losses were also mainly due to hiked investments and growing share of smaller or emerging geographies in the business and high delivery costs due to unpredictable weather and increase in fuel prices. The company said the delivery cost per order increased by Rs 5 per order in the September quarter as compared to the previous quarter.

Adjusted revenue during the quarter stood at Rs 1,420 crore ($189 million), a 22.6% growth quarter-over-quarter (QoQ) and 144.9% growth year-over-year (YoY).

Zomato's India food delivery Gross Order Value (GOV) in Q2FY22 grew by 19% QoQ and 158% YoY to Rs 5,410 crore, driven by an increase in the number of transacting users, active food delivery restaurants and active delivery partners on Zomato. Gross Order Value (GOV) is defined as the total monetary value of all food delivery orders placed online on Zomato in India including taxes, customer delivery charges, gross of all discounts, excluding tips.

Meanwhile, adjusted revenue for India food delivery grew by 20.7% QoQ to Rs1,250 crore ($166 million). This represents approximately 88% of the total adjusted revenue for the company in the same quarter.

Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) loss during the quarter increased to ₹310 crore ($41 million) as compared to Rs 1.7 billion ($22 million) in the previous quarter (Q1 FY22) and Rs 0.7 billion ($10 million) in Q2FY21 last year.

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