In Short:
Zomato reported a net profit of ₹176 crore in Q2 FY25, up from ₹36 crore last year, with revenues increasing 69% to ₹4,799 crore. The company plans to raise up to ₹8,500 crore for better cash balance and competitive positioning, with no current plans for acquisitions. They also achieved a 55% rise in gross order value, driven by strong growth in quick commerce.
Zomato’s Impressive Q2 Performance: A Fivefold Profit Surge!
In a sparkling show of growth, **Zomato** has announced a consolidated net profit of ₹176 crore for the second quarter of FY25. This remarkable leap represents a massive increase, soaring five times over last year’s profit of **₹36 crore** during the same quarter. But that’s not all; the company’s consolidated revenue from operations also jumped by an impressive 69% to ₹4,799 crore.
Expanding Horizons
In a recent regulatory filing, the company’s board gave the green light to raise up to ₹8,500 crore through a qualified institutional placement of equity shares. This move underscores **Zomato’s** commitment to scaling its operations further.
Optimism from Leadership
Speaking on the fundraising initiative, **Deepinder Goyal**, Founder and CEO of **Zomato**, expressed optimism about the company’s financial turnaround. “We’re proud to say that while our business has shifted from loss-making at the time of our IPO to now generating cash, we recognize the need to bolster our cash reserves. The competitive landscape has evolved, and so has the scale of our operations. We believe that capital alone doesn’t guarantee success; instead, it’s the quality of service that truly makes the difference,” he articulated.
Goyal added, “To clarify, there are absolutely no plans for any minority investments or acquisitions. This fundraising is aimed solely at strengthening our balance sheet.”
Gross Order Value on the Rise
The buzz around **Zomato** doesn’t stop here! Their gross order value (GOV) from B2C operations surged to ₹17,670 crore, signifying a 55% year-on-year growth. Notably, food delivery GOV rose by 21%, while the quick commerce segment showcased phenomenal growth with a striking 122% increase in GOV. In just the second quarter of FY25, **Blinkit** added an impressive 152 net new stores and opened seven warehouses.
Looking Ahead
There’s even more excitement on the horizon! **Zomato** is set to launch its new platform, the **District app**, which aims to consolidate various going-out services, in just four weeks. However, it’s worth noting that the company recorded a cash balance decrease of ₹1,726 crore compared to the previous quarter, primarily due to the *₹2,014 crore* deal partiality concerning the acquisition of **Paytm’s** entertainment ticketing business.
