Zomato reports revenue growth of 62% in second quarter

Food delivery platform Zomato on Wednesday reported revenues of Rs 1,661 crore in Q2FY23, up 62 percent from Rs 1,024 crore in the same quarter last year. Losses narrowed by about 40 percent to Rs 251 crore, while the EBITDA loss narrowed to Rs 311 crore from Rs 536 crore year on year.

Second quarter numbers also include 50 days of Blinkit's financials post the acquisition closing. The adjusted revenue ex-Blinkit grew by 38 percent year on year to Rs 1,965 crore.

Contribution margin improved to 4.5 percent and as a result, the company says, food delivery adjusted EBITDA has hit a break even in the quarter.

Addressing the macro-economic scenario, Zomato said while there is room for food delivery to grow much faster, there is not much slowdown in the quick commerce business.

The company reiterated that it has no plans to make any new minority investments and even the new business segments like intercity food delivery and 10-min delivery are relatively low investment initiatives.