Zomato in 2024: Year in Review | Zomato in 2024: A year of milestones, momentum and controversies

As 2024 draws to a close, Indian food delivery giant Zomato stands taller than ever as a benchmark for India’s tech-driven future. Under CEO Deepinder Goyal’s leadership, the company achieved milestones in profitability, while diversifying its revenue streams in the face of intense competition.

The year in numbersZomato posted a net profit of Rs 351 crore in fiscal year 2024. Gross order value (GOV) growth across the B2C businesses improved to 55% year on year (YoY) to Rs 17,670 crore in Q2FY25. Meanwhile, its quick commerce subsidiary, Blinkit, recorded a 129% YoY growth in adjusted revenues, reaching Rs 1,156 crore. GOV for Blinkit rose 122% YoY to Rs 6,132 crore. Despite these profits, achieving profitability remains a challenge, especially as competitors like Zepto gain ground.

Zomato’s Blinkit

Blinkit, which market analysts suggest is driving the upside in Zomato’s valuation, has extended its aggressive expansion plan. The quick commerce platform, which was acquired by Zomato in 2022, plans to double the count of its dark stores, or micro warehouses, to 1,000 by the end of FY25, and to more than 2,000 by 2026. Akshant Goyal, chief financial officer of Zomato, said Blinkit is witnessing growth in smaller cities as well and the plan is to widen its footprint gradually.

Diversifying beyond foodZomato expanded its footprint in live events and entertainment with the launch of the District app, following its acquisition of Paytm Insider for Rs 2,048 crore. With this, Zomato now has an app that rivals Reliance-backed Bookmyshow. ET had reported in August that Bookmyshow is likely to face intense competition from Zomato following the latter’s strides into the going-out business.

Stock performance

Zomato became the first new-age tech stock to join the BSE Sensex, replacing JSW Steel in a routine half-yearly rebalancing of index constituents. The shares of Zomato closed at 271.15 on the BSE.

The firm recently raised Rs 8,500 crore through a qualified institutional placement (QIP) that was largely led by domestic investors.

Navigating controversies

Looking ahead

Zomato wraps up 2024 as India’s largest publicly listed consumer internet company, but challenges like regulatory scrutiny and competitive pressures loom. Yet, its focus on improving profitability across verticals suggests a strong foundation for 2025.