The Average Order Value (AOV) of Zomato has been increasing continuously even during the pandemic. In the fourth quarter of the last financial year, it reached Rs 395, which was Rs 287 a year ago.
Food aggregator Zomato is now recovering from the losses incurred during the pandemic, with the company’s revenue declining during the lockdown. Zomato said that the first quarter of this financial year was better than the same period last year. The company also said that it will soon start a grocery section on its app.
Now to buy grocery from Zomato, users will have to go to the grocery section and select the store according to their convenience and pay by adding the desired item to the cart. It will be just like you order food from Zomato at present. After making the payment, the goods will be delivered to your chosen address at the specified time. It recently made a major investment in grocery e-tailer Grofers.
Zomato’s IPO to launch next week
Apparently Zomato is launching its IPO next week. The company reported operating revenue of Rs 1,993 crore for the March end year, down 23.5% from Rs 2,604 crore a year ago, according to its red herring prospectus. Partially due to this the loss also came down from Rs 2,362 crore to Rs 822 crore. Expenditure almost halved from Rs 5,000 crore to Rs 2,608 crore.
The company’s Chief Financial Officer Akshat Goyal said, “The food delivery business was affected in the first wave of Kovid due to the fear of the virus. The fear of surface transmission is now gone and we have taken crores of orders in the last 18 months without a single case of transmission through food delivery.” The Average Order Value (AOV) of the company has been increasing continuously even during the pandemic. In the fourth quarter of the last financial year, it reached Rs 395, which was Rs 287 a year ago.
Zomato invests $100 million in Grofers
On the grocery, Goyal said that this is a big opportunity and it is still in the initial stage. “We are actively experimenting in this area and recently invested $100 million for a minority stake in Grofers. We are in the process of launching a grocery delivery marketplace on our platform on a pilot basis.”
The shares of Zomato will be listed on the stock exchange on July 27. The issue price is Rs 72-76 per share. The company increased the offer size to Rs 9,375 crore from the already planned Rs 7,500 crore due to increased demand from investors during the roadshow. Info Edge India, one of the early backers, has halved its offer for sale from Rs 750 crore.
Zomato, which is backed by Info Edge, Alipay, Ant Financial, Tiger Global and Sequoia, said it has achieved positive unit economics with an average contribution margin of Rs 23 per order in the third quarter of last year, compared to negative Rs 30.5. above the margin. a year before that. The company said that it is earning money per order on an average. This has been made possible due to the increase in commission.
