Zomato’s net loss stood at Rs 186 crore for Q1 FY23

As per the company’s shareholder’s letter and results, Zomato’s adjusted revenue rose 56% to Rs 1,810 crore in Q1 FY23

Zomato’s net loss stood at Rs 186 crore for Q1 FY23
As per the company, the growth in revenue was driven by 10% quarter-on-quarter growth in gross order value

Food delivery firm Zomato Ltd posted a contraction in its quarterly loss on Monday, helped by an increase in orders for restaurant meals on its platform. The company’s net loss stood at Rs 186 crore for Q1 FY23 ended June 30, as opposed to Rs 356 crore in Q1 FY22 a year ago, the company said in a regulatory filing.

As per the company’s shareholder’s letter and results, Zomato’s adjusted revenue rose 56% from Rs 1,160 crore in Q1 FY22 to Rs 1,810 crore in Q1 FY23. Similarly, the company’s revenue from operations, rose to Rs 1,414 crore from Rs 844 crore, same time last year. As per the company, the growth in revenue was driven by 10% quarter-on-quarter growth in gross order value (GOV) to Rs 6,430 crore in Q1 FY23 and from growth in revenue per order. GOV growth was in turn driven by robust growth in order volumes and mild growth in average order values as compared to the previous quarter, the company stated. “The real driver here is focus and mindset. Our focus on profitability has sharpened over the past few months with the change in market context, without compromising our focus on growth. We are doing that by assessing everything with a critical lens and allocating resources by taking a long-term view to sustainable growth, as well as profit,” Deepinder Goyal, CEO, Zomato, said.

The Gurugram-based company, which operates in more than 1,000 towns and cities in India, also offers online table booking and special discounts at select restaurants. While Zomato has disclosed quarterly losses since going public in 2021, it has seen a consistent rise in orders.

The domestic food delivery market is expected to grow three times over the next five years, helped by rising order frequency and user addition, with Zomato expected to maintain a market share in the range of 45-50%, analysts at Credit Suisse said in a note last month.

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