Zomato reported a 70 per cent increase in revenue to Rs 2,056 crore in the fourth quarter of FY23, aided by growth in its B2B supplies business Hyperpure. Losses for the period were Rs 188.2 crore, a 47 per cent decrease from the previous year. Zomato Hyperpure saw a 146 per cent increase in revenue to Rs 478 crore in the fourth quarter compared to the previous year.
According to the company, it introduced a delivery charge for orders under a certain value, which resulted in some churn in restaurants ordering from Hyperpure, resulting in a decrease in losses in the segment.
Revenue from the food delivery business increased by 22 per cent in the quarter to Rs 1,172.5 crore, up from Rs 956 crore in the same period last year. Zomato's business, excluding quick commerce, turned EBITDA positive on an adjusted basis last quarter, owing to growth in the food delivery vertical, which generated Rs 7800 crore in adjusted EBITDA, according to the company's letter to shareholders.
The company stated that it is 90 per cent confident that its entire business, including quick commerce, will achieve EBITDA-level profitability in the next four quarters. To achieve the goal, the company is prioritising increasing revenue in food delivery and reducing losses in Blinkit.
Last quarter's gross order value (GOV) of food orders was Rs 6,500 crore, while monthly transacting clients increased to 16.6 million from 15.7 million the previous year. According to CFO Akshant Goyal, the quarterly growth was weak primarily due to a downturn in demand from October last year to January this year.
However, since February 2023, the company has seen "green shoots of recovery" and anticipates the rebound to continue and reflect in higher GOV growth in the coming quarter, according to a statement.
Last quarter's growth was also slowed by a shorter February and the closure of operations in 225 cities in January 2023, according to Akshant. According to the company, Zomato gained market share in FY23.