Zomato Q3 FY24 results: Blinkit posts second consecutive positive quarter, revenue doubles on-year

Zomato's quick ecommerce wing Blinkit said its gross order value (GOV) grew 28 per cent QoQ and 103 per cent YoY largely due to the robust uptick in demand due to the multiple festivals and occasions in the quarter. The company noted its revenue from ads outpaced the order value and registered an increase of 220 per cent YoY during the December quarter.

Blinkit reported a revenue of Rs 644 crore in Q3 FY24 as against Rs 301 crore in the year-ago quarter and Rs 505 crore in Q2 FY24. The quick commerce vertical’s adjusted EBITDA loss further improved to Rs 89 crore in the quarter ended December 2023 from Rs 227 crore in Q3 FY23 and Rs 125 crore in Q2 FY24.

In its shareholders letter, Zomato said Blinkit’s contribution margin, as a percentage of GOV, in the overall business further improved to 2.4 per cent in Q3 FY24 from 1.3 per cent in Q2 FY24.

On the back of the festive season, Blinkit’s operational and financial metrics saw major growth. While GOV soared 103 per cent year-on-year (YoY) to Rs 3,542 in the quarter ended December 2023, average order value (AOV) jumped 14 per cent YoY to Rs 635 in Q3 FY24.

"In-line with our expectations, GOV grew 28% QoQ (103% YoY) largely driven by the robust uptick in demand that we witnessed due to the multiple festivals and occasions in the quarter. This growth was also fuelled by having the right assortment which addressed the most pertinent needs of our customers. The team also ensured consistently high service levels through minimal stock-outs and adequate delivery partner availability during periods of peak demand," said Blinkit CEO Albinder Dhindsa.

Blinkit said it had 557 advertisers on its platform as of Q3 FY24, which surged by 130 per cent YoY from 242 advertisers in Q3 FY23. The top 20 advertisers accounted for 40 per cent of the total revenue from ads for Blinkit.

The GOV growth was order volume-led, part of it was also driven by an increase in average order value, which continued to benefit from a higher mix of high ASP (average selling price) categories such as electronics, festive needs, home décor, among others.

"We also added 40 net new stores this quarter, taking the total store count to 451 as at the end of the quarter. Despite the increase in store count, our average GOV per day, per store grew 17% QoQ reflecting healthy same store sales growth," Dhindsa added.

Blinkit delivered 55.8 million orders in Q3FY24 or about 6 lakh orders per day which was an increase of 77 percent from 31.6 million orders in Q3FY23. Even the average order value (AOV) jumped from Rs 553 to Rs 635 during the same period.

“In Q3 FY24, close to 70% of our stores were contribution positive and ~20% of these were operating at a 5%+ contribution margin resulting in a growing pool of contribution profit, which is creating room for investing in new stores while also continuing to improve the aggregate contribution margin,” Dhindsa said.

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