Zomato’s revenues rise to Rs 844.4 cr in Q1 on growing food delivery business

The pandemic, though significantly impacted the dining-out business in Q1FY22 reversing most of the gains the industry made in Q4 FY21, the firm said.

Food delivery platform Zomato’s revenue from operations increased to `844.4 crore on a consolidated basis in the three months ended June from Rs 266 crore in Q1FY21, registering a significant year-on-year (y-o-y) growth of over 200%.

Total losses, however, shot up to Rs 360.7 crore in Q1FY22 from Rs 99.8 crore in the year-ago period on the back of a steep rise in expenses. The food delivery firm’s total expenses increased to Rs 1,259.7 crore in Q1FY22 from Rs 383.3 crore in Q1FY21, the company said in its quarterly report published on Tuesday.

Zomato, which had a stellar D-street debut last month said that the revenue growth was largely on the back of “growth in our core food delivery business which continued to grow despite the severe Covid wave starting April”. Adjusted revenue grew by 26% quarter-over-quarter (q-o-q) to `1,160 crore in Q1FY22. Adjusted revenue includes revenue from operations and customer delivery charges. Last week, the firm delivered a billion orders.

“It took us six years to get to this milestone and we hope it takes us much less time to deliver the next billion. The fact that over 10% of these billion orders were delivered only in the last three months makes us confident about getting to the next billion much sooner,” founder & CEO Deepinder Goyal said.

The India food delivery business reported a record gross order value (GOV), several orders, transacting users, active restaurant partners and active delivery partners during the quarter. India food delivery GOV grew by 37% q-o-q to Rs 4,540 crore in Q1FY22, Zomato said.

The pandemic, though significantly impacted the dining-out business in Q1FY22 reversing most of the gains the industry made in Q4 FY21, the firm said.