Zomato will soon launch a grocery section on its app. Recently, the company made a big investment in grocery e-tailer Grofers.
Food aggregator is recovering well after the pandemic, which saw its revenue plummet. Its first quarter of this fiscal was better than the same period last year.
Zomato is launching its IPO next week. It posted operating revenue of Rs 1,993 crore for the year ended March, down 23.5 percent from Rs 2,604 crore in the year before, according to its red herring prospectus. The firm’s losses also dropped to Rs 822 crore, from Rs 2,362 crore. Expenses nearly halved to Rs 2,608 crore, from Rs 5,000 crore.
Akshant Goyal, Chief Financial Officer, Zomato, said, “Food delivery business was hit in the first wave of Covid due to fear of virus and surface transmission. The fear of surface transmission has gone away and we have delivered crores of orders in the last 18 months without even a single case of transmission through food delivery.”
The company’s average order value (AOV) has been steadily increasing, even during the pandemic. It touched Rs 395 in the fourth quarter of the last fiscal, from Rs 287 a year before that.
“It is a large opportunity and is in a nascent stage right now. We are actively experimenting in this space and recently invested $100 million for a minority stake in Grofers with the idea of getting more exposure to that space. We are in the process of rolling out a grocery delivery marketplace on our platform on a pilot basis,” he added.