Zomato's Quick Commerce Ambitions Amid Profit Decline

Zomato reported a significant 57.2% drop in net profit in the December quarter due to increased expenses from aggressive expansion of its quick-commerce platform, Blinkit. Despite a broad demand slowdown, the company saw growth in food delivery and announced plans to rapidly increase Blinkit store count.

Zomato, the food tech unicorn, recorded a 57.2% dip in consolidated net profit for the December quarter, plummeting to Rs 59 crore. The decline comes amid an aggressive expansion drive for its quick-commerce platform, Blinkit, as outlined in a recent letter to shareholders.

Despite the profit drop, Zomato's food delivery service saw a 2% quarter-on-quarter increase and a 17% year-on-year rise, indicating resilience in the face of a broad-based demand slowdown. Revenue from operations soared to Rs 5,405 crore, although expenses reached Rs 5,533 crore.

Zomato plans to hit 2,000 Blinkit stores by year-end, surpassing its original guidance. CEO Deepinder Goyal highlighted the potential of their 10-minute food delivery service, Bistro by Blinkit, targeting office goers. The company's shares closed down by over 3% on the BSE.