Zomato posts INR2.7b loss in Q3 2022

This is an improvement from INR3.1b loss in the previous quarter.

Food delivery app Zomato Limited narrowed its loss to INR2.7b in the third quarter of financial year 2022 from INR3.1b in the previous quarter. Zomato’s financial year ends on 31 March of the year.

The company’s revenue was flat at INR14.2b over the same period. This was attributed to about 9% quarter-on-quarter revenue from operations, offset by customer delivery which contracted 22%.

“We re-distributed our growth investments more in favor of discounts on customer delivery charges vis-a-vis food coupons,” Zomato said.

“We are seeing higher return on investment with discounted delivery charges as compared to coupons. As a result, discounts per order reduced by INR 5 per order in the last quarter as compared to Q2 FY22.”

Zomato noted the reduction in customer delivery charges was also due to the temporary free delivery introduced in 180 new cities.

Moreover, its gross order value (GOV) rose 1.7% QoQ to INR55b, whilst the number of orders grew 5% during the quarter, which the company also linked to the reduction in delivery charges.

On top of this, Zomato said the weak quarterly growth in GOV is also a soft impact of post-covid reopening.