The Benchmark Consultants’ Post

Zomato's CFO, Akshant Goyal, has made it clear that the company won't be raising money or resorting to aggressive discounting to stay competitive. Instead, Zomato is focused on growing its revenue and expanding its user base. This strategy is reflected in the company's Q2 results, which show a 5x increase in profit to Rs 176 crore and a 69% rise in revenue to Rs 4,799 crore. 📌 Zomato's food delivery business has seen steady growth, with adjusted revenue increasing marginally to Rs 2,340 crore in Q2. The company's quick commerce arm, Blinkit, has also performed well, with revenue rising 23% sequentially to Rs 1,156 crore. 📌 The company's focus on profitability is evident in its efforts to reduce losses in its quick commerce business. Blinkit's average order value (AOV) has increased to Rs 660 in Q2, and its dark store count has risen to 791. 📌 Zomato's acquisition of Blinkit in 2022 was a strategic move to expand its presence in the quick commerce market. The acquisition was valued at Rs 4,447 crore and marked a significant investment in the company's growth plans. Overall, Zomato's strategy seems to be paying off, with the company reporting strong revenue growth and increasing profitability. By focusing on sustainable growth and reducing losses, Zomato is well-positioned to maintain its market share in the competitive food delivery and quick commerce space. #corporatenews #governancehub #governancenews #indiancorporates #Boardnews #Throughtleadership #hotnews #trendingnews #zomato

Zomato raises $1.01B through QIP! Here’s the byte-sized update: 🍕 Motilal Oswal Financial Services Ltd leads the feast, investing ₹1,800 Cr (~21% of the issue). Fun fact: They also backed Zepto recently—someone’s got an appetite for quick commerce! 📈 Why this matters: Zomato's cash reserves now stand at ₹19,300 Cr—nearly double the cash reserves of Swiggy or Zepto individually! 🤑 Joining the BSE Sensex club on Dec 23—India's first new-age economy company to make the cut. 🥳 🏗️ What’s cooking? ₹2,137 Cr to open 2,000 dark stores by 2026. (small warehouses for hyperlocal delivery) ₹2,492 Cr for ads & branding ₹2,492 crore will go towards promoting its ecosystem—food delivery, quick commerce (Blinkit), and entertainment (District By Zomato).😉 ₹1,843 Cr for tech/cloud services—because the cloud is where all the real deliveries happen! ☁️ 🤝 CEO Deepinder Goyal continues to waive his salary till 2026, focusing on building a $2.3B personal stake through stock options. Smart ROI! 😏 💡 Takeaway: Zomato is not just delivering food; it’s delivering strategy, scale, and shareholder value. #Zomato #FundingNews #QIP #QuickCommerce #Leadership #Sensex

Jefferies on Zomato Maintain Buy with TP of Rs 335 In a surprising-yet-interesting move, Zomato has announced QIP QIP despite $1.2bn on books, with rising FCF in food Media reports indicate a likely raise of US$1bn, with Zomato applying to RBI to cap FII holding at 49% This move, if confirmed, will convert Zomato into a 'domestic' co. This will enable 1P (inventory) model in quick commerce, which improves profitability This may also result in stock deletion from MSCI The process of FII cap may take time, in our view Foreign firms cannot run an inventory led, 1P model and need to restrict operations to marketplace Blinkit currently operates a marketplace model wherein local third party entrepreneurs own the inventory and sell it to users on Blinkit platform Blinkit links up users, riders and sellers on a common platform Majority domestic ownership will allow Blinkit to follow the inventory model Vendors’ take-rate is around 2% of GOV to compensate for running the operations & earning return Inventory model will allow Blinkit to have a tighter control over the inventory and take calculated risks when it comes to launching or scaling up new categories, as it expands well beyond grocery #Zomato #Blinkit #FundRaise

📈 Deepinder Goyal, has officially entered the billionaire's club! As of today, Zomato's shares surged by 4.75% on the BSE, reaching an all-time high of Rs 232 apiece. Goyal's 4.1% stake, equating to 36.95 crore shares, now values his holding at a whopping Rs 8,498 crore. Zomato raised its platform fee by 20% to Rs 6 per order, and its quick commerce arm Blinkit increased its handling fee to Rs 4 per order. Zomato concluded FY24 with a stellar 71% YoY growth in revenue, totaling Rs 12,114 crore, and a net profit of Rs 351 crore, marking a profitable fiscal year. by Akshita Toshniwal | #BillionaireClub #Zomato #DeepinderGoyal #StockMarket #FoodDelivery #QuickCommerce #BusinessGrowth #Financial #Innovation 🔗 Read more on the link in our comments section 👇

Zomato share price: Emkay Global raises target driven by #Blinkit, sees 17% more upside Zomato's stock price has jumped by more than 214% in the last year Analysts believe that the stock might climb even further, especially considering the growth of Blinkit. #Emkay Global Financial Services now predicts #Zomato shares could hit ₹230 each, up from ₹170 before. Emkay Global also thinks, “Zomato's #revenue and #profits could grow further” Quick Commerce companies like Blinkit, Instamart, and Zepto are benefitting in major cities. These companies benefit from factors like high population density and low labor costs. Zomato orders are increasing nowadays and so the company gets high profits. Blinkit, in particular, is doing well because it offers a wide range of products and fulfills orders quickly. At 1:00 pm, Zomato shares were #trading slightly lower at ₹194.20 per share on the #BSE. #stockmarket #marketupdate #tradeinsights #thebusinesscorridor Read here: https://lnkd.in/gCcfZvQV

Public markets operate on narratives. And who’s better to play on narratives than Zomato 👇🏻 Zomato wants to be known for two things : 1. Going Out 2. Staying in As we saw initially , how bullish the market was on Food Delivery (staying in). When that growth phase of food delivery business stagnated , Zomato added a new growth engine / Blinkit . Now , same situation is going on in Quick commerce too. So what’s next , it plays on the next addition to the Going Out flywheel - Aquisition of Paytm Insider.in . But how easily the Zomato is doing all this. It’s not investor driven , but the investor rewarded. It knows that , whatever Zomato will do , its investor will become more and more bullish on it. See it like this : In a fight of an Intelligent one and the Crazy one , who wins ? “The Crazy one” And for it’s all investors - Zomato is the crazy one. Its growth is impressive, but is it impressive enough to trade at 470X its past 12-month profit? - Here’s an excerpt from The Ken about it : #market #zomato #investment

Zomato Ltd, the leading online food delivery platform, is on track to achieve breakeven in its overall business between the fourth quarter of this fiscal and the second quarter of FY24, a result of gradual loss reduction, as confirmed by company CFO Akshant Goyal. In the financial year ending March 31, 2021, Zomato CEO and Founder, Deepinder Goyal, drew a salary of ₹1.96 crore. Admirably, he publicly declared his decision to forgo any salary for the next three years, amidst the challenging backdrop of COVID-19. However, an intriguing development emerges: Despite this significant sacrifice, reports surface of Deepinder Goyal's purchase of India's first Aston Martin DB12 for Rs 4.59 crore. How can we reconcile this apparent contradiction? Profit: Zomato, despite reaching EBITDA breakeven with Blinkit, continues to grapple with EBITDA negativity, resulting in minimal profits. Equity: Deepinder Goyal, while foregoing his salary for three years, retains approximately 4.7% equity in Zomato. This ownership stake significantly contributes to his substantial net worth of INR 2570 crore. It's plausible that he financed the luxury car acquisition by liquidating some of his assets. Understanding the nuanced components of business wealth is paramount. While sacrifices may be made in the short term to strengthen a company's financial foundation, equity holdings can also serve as a catalyst for personal success. Both facets underscore the complexities of wealth management and strategic decision-making in the dynamic business landscape. #DeepinderGoyal #BusinessWealth #Zomato #CEOInsights #FinancialStrategy

Zomato Nears $30 Bn Market Cap Following Strong Q1 FY25 Results A day after reporting impressive Q1 FY25 results, foodtech giant Zomato witnessed a remarkable surge in its market capitalisation, bringing it closer to the $30 Bn mark. During early trading hours on August 2, Zomato’s share prices hit a fresh 52-week high of INR 278.45, pushing its market cap to $28 Bn. However, by 2:10 PM, shares slightly retraced to INR 265, placing the company’s market cap at $27.93 Bn (INR 2,33,782.71 Cr). This 18% increase in market value from last week’s close of $23.66 Bn follows Zomato’s announcement of its fifth consecutive profitable quarter. The company marked its first profitable quarter in Q1 FY24 with a profit after tax (PAT) of INR 2 Cr, and has since continued to strengthen its financial position. #Zomato #MarketCap #Q1FY25 #Foodtech #StockMarket #FinancialResults

ZOMATO'S IMPRESSIVE Q2FY25: Growth and Optimism Zomato has delivered a stellar performance in Q2FY25, with revenues soaring to ₹4,800 crore, driven by strong growth in Blinkit, Hyperpure, and Going Out segments. The company's net profit skyrocketed by 389% to ₹176 crore, with a 69% year-on-year revenue increase. Key Highlights: - Strong Analyst Ratings: HSBC and Nomura maintain 'buy' ratings, targeting ₹330 and ₹320 per share, respectively, highlighting Zomato’s solid food delivery numbers and quick commerce success. - Strategic Investments: Despite a decrease in cash reserves, a recent fundraise of up to ₹8,500 crore positions Zomato to remain competitive in a crowded market. - Future Growth: Zomato aims to achieve 2,000 dark stores by December 2026 and is set to launch the District app, consolidating its Going Out services. Conclusion Zomato’s shares have jumped over 106% this year, significantly outperforming the Nifty index. With a clear focus on growth and innovation, Zomato is well-positioned for the future. #Zomato #Finance #Investmentbanking

Zomato Q2FY25 Results Preview: Strong Revenue and Profit Surge Expected! All eyes are on Zomato as it gears up to release its Q2FY25 financial results, with industry experts forecasting a notable surge in revenue and profits. With the ongoing expansion into Tier 2 and Tier 3 cities, along with innovative offerings, Zomato is poised to continue its robust growth in India’s highly competitive food delivery market. Key Expectations: Revenue Growth: Zomato is expected to report a double-digit growth in revenue, driven by higher order volumes and increased customer engagement. Profit Boost: Profit margins are likely to see a significant improvement, fueled by cost optimizations and the success of its loyalty programs like Zomato Gold. Market Expansion: Zomato’s aggressive entry into smaller cities and new business models (like grocery deliveries) have been major contributors to its impressive growth trajectory. Growth Drivers: New Customer Acquisition: With a focus on reaching untapped markets, Zomato has been expanding its footprint, particularly in underserved regions. Product Innovation: Enhancements in the user experience, coupled with the expansion of Zomato Gold, have helped boost average order value and customer retention. Strategic Partnerships: Collaborations with restaurants and delivery partners are improving efficiency, reducing costs, and ensuring faster deliveries. Investor Outlook: With a strong foundation for long-term growth, Zomato’s Q2 results are expected to reaffirm its position as a market leader in India’s evolving food delivery landscape. Will these impressive numbers continue driving investor confidence? Stay tuned for the official announcement! https://lnkd.in/ezPCeJFF #Zomato #Q2Results #RevenueGrowth #ProfitSurge #FoodDelivery #IndiaStartups #Investing #TechGrowth #CustomerExperience #ZomatoGold #Youtubeshorts #Shorts #Facebook #Linkedln How do you see Zomato performing in the coming quarters? Let’s discuss your thoughts and expectations in the comments below!