INSUBCONTINENT EXCLUSIVE:
Food delivery giant Zomato has reported loss in the September quarterFood shipment huge Zomato's consolidated net loss widened to Rs 435
crore in the second quarter of 2021-22
It had actually earlier reported a consolidated loss of Rs 230 crore in the corresponding duration of last year.Zomato's combined income
from operations rose 140 percent to Rs 1,024 crore in September quarter of the current financial as against Rs 426 crore in the
corresponding duration of last year.The company attributed a range of factors behind its losses, generally greater spending on branding and
marketing for consumer acquisition, increased financial investments and growing share of smaller sized towns and cities in its organization
which are not as successful as compared to larger centres and higher delivery expenses due to increasing fuel costs and unforeseeable
The delivery cost per order increased by Rs 5 per order in September quarter of 2021-22 as compared to June quarter of existing fiscal
This was on account of extended and unpredictable rainy season (which still continues in many parts of the country, unusually) and sharp
increase in fuel prices, the company stated in a filing to stock exchanges.At the very same time, Zomato added that it did not anticipate
delivery costs to increase further and revealed confidence about its contribution margin staying favorable in the mid, along with long
term.The business's shares had got listed in the stock market in July this year.
