Zomato Q4 Results: Zomato, now known as Eternal, on Thursday, May 1, posted a sharp decline of 78% year-on-year (YoY) in its January-March quarter of the financial year 2024-25 (FY25) to ₹39 crore, largely on account of the accelerated investments in its quick-commerce business Blinkit.
Moreover, the slowdown in the food delivery business also has a Blinkit connection. CEO Deepinder Goyal said that competition from quick delivery of packaged food from quick commerce is leading to a drop in demand for food delivery from restaurants.
Blinkit Q4 results
Blinkit’s adjusted EBITDA losses, meanwhile, increased to ₹178 crore from ₹103 crore in the previous quarter, which Eternal said “was expected and in line with our plan to pull-forward expansion of our store network”.
While the company added 294 net new stores in Q4FY25, making it its highest-ever net store addition in a single quarter, and saw average monthly transacting customers increasing to 13.7 million in Q4FY25 from 10.6 million in Q3FY25, it flagged rising competition in the quick commerce business.
Akshant Goyal, Chief Executive Officer, at Eternal said, “Our view is that competition is going to intensify further from here in the near term. This is the largest consumption category in the country, and beyond just the early quick commerce players, we will continue to see competition from next-day delivery companies as they invest more in faster deliveries, especially in non-grocery categories.”
However, despite that, he said his long-term optimism for the business remains intact.
Mitigation Steps
Over the next few quarters, company has a three-pronged strategy to deal with rising competition:
