'Means a lot coming from you,' says Zomato CEO as MoS IT congratulates firm for turning profitable for first time

Zomato CEO Deepiner Goyal on Thursday thanked Rajeev Chandrasekhar for his good wishes as the food delivery platform became profitable for the first time. 

"This is a bright beacon to all investors n startups that a path to profitability can &  must be the outcome that all Indian Tech startups work to achieving," tweeted Chandrasekhar on X (formerly Twitter).

Zomato Ltd on Thursday reported a net profit of Rs 2 crore for the quarter ending June 30, 2023 in comparison to a loss of Rs 186 crore in the same quarter last year.

"Thank you so so much sir. Means a lot coming from you. We are proud to continue building Zomato in the service of our nation. We aim to make profit to build better services, not build services to make profit," responded Goyal to Chandrasekhar's tweet.

Goyal said that company’s consolidated business, including Blinkit, has reached a noteworthy accomplishment by becoming Adjusted EBITDA and PAT (Profit After Tax) positive for the first time in the company’s history.  

According to a tweet by Goyal, this achievement has arrived ahead of schedule, demonstrating the company's commitment to growth and financial stability.

Another triumph to celebrate is the success of Zomato's quick commerce venture, Blinkit. The quick commerce division achieved contribution positivity in June 2023. This achievement adds to the company's optimistic trajectory. 

Moreover, Zomato envisions Blinkit to attain Adjusted EBITDA breakeven within the upcoming four quarters.

The revenue of the company also showed a massive growth, rising by 71 per cent to Rs 2,416 crore compared to Rs 1,414 crore in the previous year. 

In the first quarter of the fiscal year 2023-2024, the consolidated adjusted EBITDA demonstrated a significant improvement, amounting to Rs 12 crore. This marks a notable turnaround from the loss of Rs 152 crore reported in the same period of the previous fiscal year. This positive performance is further reflected in the adjusted EBITDA margin, which recorded a growth of 9 percentage points year-on-year, reaching 0.4 per cent.

The adjusted revenue, excluding contributions from the quick commerce segment, exhibited a robust growth of 33 per cent year-on-year, amounting to Rs 2,402 crore. This showcases the company's ability to generate steady revenue streams and sustain growth across its core operations.

Turning towards its dining out vertical, Zomato has reported profitability for its India-based operations. The company envisions even more potential in the 'Dining out + Live = Going Out' sector. Zomato is considering expanding this concept into a distinct super brand outside the Zomato app, reflecting its strategic and forward-thinking approach.

Emphasising its commitment to sustainability, Zomato has set an ambitious target of achieving Net Zero emissions across its food delivery value chain within the next decade. This initiative reflects the company's dedication not only to its business but also to the environment.

Paytm CEO Vijay Shekhar Sharma also congratulated Zomato for its achievement.

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