After a successful IPO, Zomato reports massive loss in Q1 results at ₹360.7 crore
Zomato Q1 results, which came close on heels of its IPO, was awash in red as total expenses of the company rose to ₹1,259.7 crore.
Online restaurant aggregator and food delivery platform Zomato has reported a net loss of ₹360.7 crore in Q1, mainly due to a huge rise in expenses. Zomato had posted a net loss of ₹99.8 crore for the corresponding period of the previous fiscal. Notably, Zomato had an extremely successful initial public offering recently. Thereafter, Zomato made a stellar debut on bourses on July 23. In their letter today on the Q1 result, both Zomato Founder and CEO Deepinder Goyal, and CFO Akshant Goyal said, "We also remain grateful to our shareholders and investors, who have believed in us and in our long-term view of our business".
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Zomato Q1 results
1. Consolidated revenue from operations of the company stood at ₹844.4 crore for the quarter under consideration against ₹266 crore for the same period a year ago
2. Total expenses of the company rose to ₹1,259.7 crore for the quarter ended June this year from ₹383.3 crore for the year ago period
3. During the quarter ended June 30, 2021, Zomato entered into definitive agreements with Grofers India, Hands On Trades, Grofers International and some others, in relation to the acquisition of 9.25 per cent stake in Grofers India and 9.27 per cent stake in HOTPL respectively.
"Last year, we ranked at the bottom of a gig economy worker survey conducted by an independent third party. We acknowledged that there was a lot we needed to do and we fast tracked a number of initiatives in the pipeline to improve the work environment for our delivery partners," the letter said.
On an average, the top 20 per cent of Zomato's 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, they added. "We had 310k active delivery partners in July, which is the highest ever in our lifetime," the letter said.
Zomato also revealed today that it has incorporated a wholly-owned subsidiary in the name of Zomato Payments Pvt Ltd, PTI reported. "Zomato Payments Pvt Ltd (ZPPL) is incorporated with an initial subscription of 10,000 equity shares of ₹10 each aggregating to ₹one lakh only," it added.
Zomato share price closed at ₹138.30 on BSE, down 0.79 per cent from its previous close.