Zomato delivers one billion orders, loss widens to INR 3.6 billion in Q1 FY22

“Last week, we delivered a billion orders on Zomato. It took us 6 years to get to this milestone and we hope it takes us much less time to deliver the next billion,” shared Deepinder Goyal, CEO & Co-Founder, Zomato in blog post by adding that 10%+ of these billion orders were delivered only in the last three month.

The food delivery platform that presented its quarterly earnings as a public company on Tuesday mentioned that its operational revenue increased by 22% to Rs 844 crore in April-June, while net losses rose over 168% from the previous quarter to Rs 360 crore.

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The adjusted revenue (revenue from operations and customer delivery charges) grew by 26% quarter-over-quarter (“QoQ”) to INR 11.6 billion.

“Revenue growth was largely on the back of growth in our core food delivery business which continued to grow despite the severe COVID wave starting April. On the other hand, COVID significantly impacted the dining-out business in Q1 FY22 reversing most of the gains the industry made in Q4 FY21,” added Goyal.

The Gurgaon-based platform also mentioned that adjusted EBITDA loss was INR 1.7 billion in Q1 FY22 as compared to INR 1.2 billion in Q4 FY21. The loss for Q1 FY22 reported in our financial statements is INR 3.6 billion as compared to the Adjusted EBITDA loss of INR 1.7 billion. This is largely on account of non-cash ESOP expenses which have increased meaningfully in Q1 FY22 due to significant ESOP grants made in the quarter pursuant to creation of a new ESOP 2021 scheme.

Goyal also said that India food delivery business continues to remain contribution positive; although the contribution margin reduced slightly in Q1 FY22 as compared to the previous quarter on account of growth investments in addition to the costlier business environment (due to lockdowns) in which this growth was achieved.

“India food delivery business reported the highest ever GOV, number of orders, transacting users, active restaurant partners and active delivery partners till date in any quarter in our history,” he added.

As per Zomato, India food delivery GOV in Q1 FY22 grew by 37% QoQ to INR 45.4 billion ($605m), from INR 33.1 billion ($442m) in Q4 FY21 (@ 1 USD = 75 INR).

Zomato also added that it had 310k active delivery partners in July, which is the highest ever in their journey.

“We believe we pay our delivery partners fairly for the work that they put in. We are proud to create hundreds of thousands of gigs for a strata of society which otherwise didn’t have a predictable source of income. On an average, the top 20% of our delivery partners who deliver on bikes and put in more than 40 hours a week receive a payout of more than ₹27,000 per month. Perhaps, the reason why our delivery partners work with us is because they see higher earnings potential compared to other jobs/gigs available to them at the moment,” added Goyal.

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All of this has ensured a tremendous increase in the NPS scores of the delivery partners, from -10% last year to 28% in the last few months.