Zomato Q2 results: Net loss widens to Rs 430 crore

Online food delivery giant Zomato on Wednesday reported a net loss of Rs 429.6 crore in the July-September quarter as against a loss of Rs 229.6 crore in the year-ago quarter. The company had posted a loss of Rs 356.2 crore in the preceding June quarter.

The company said its adjusted revenue in September quarter stood at Rs 1,420 crore, registering a 22.6 per cent growth quarter-over-quarter (QoQ) and 144.9 per cent growth year-over-year (YoY).

Zomato said the restaurant industry bounced back during the quarter, with overall customer traffic on its platform in India increasing to 59 million average monthly active users (India MAU) as compared to 45 million in June quarter.

The company attributed the increase in its loss to investments in the growth of food delivery business. "Three reasons to be specific – a) increased spending on branding and marketing for customer acquisition, b) increased investments and growing share of smaller/emerging geographies in our business (which are less profitable today compared to more mature cities) and c) increased delivery costs due to unpredictable weather and increase in fuel prices," Zomato said.

(More details to follow)