The Zomato Mindset: Part 2
In my last post on “The Zomato Mindset ” , I had mentioned about Blinkit being a 12.75% revenue contributor to Zomato’s top line. T he company’s food delivery business saw a macro-slowdown but other quick commerce businesses “ Hyperpure ” and “ Blinkit ” displayed substantial growth on local and national level. These are still unprofitable. Blinkit did very well in Q3FY23 and is a renowned name in the sector. But given the new developments, even Blinkit now is facing issues. Delivery partners of Blinkit have gone on strike since April 12 when Zomato reduced delivery fees. Dark stores in Delhi -NCR region had a temporary shutdown. This would have led to a huge loss in revenue for Zomato . As ICICI securities predicted, 1% loss in revenue of Blinkit and 0.5% loss in consolidated revenue of Zomato doesn’t show much impact on the top line of Q1FY24. But this will definitely have an impact on the bottom line of Q1FY24 as the company still loss making. T he applica...