Zomato invests in Curefit, Magicpin and Shiprocket; Q2 revenue jumps to Rs 1,024 crore

It also mentioned that India food delivery Gross Order Value (“GOV”) in Q2 FY22 grew by 19% QoQ and 158% YoY to INR 54.1 billion ($721 million).
  • Nusra Deputy Features Editor

 “India is at an inflection point for internet businesses. Between the years 2012 and 2020, India saw 25 private companies which were valued at more than $1 billion (popularly known as unicorns). This calendar year so far, we have seen 35 new unicorns in India. While there is a lot of chatter about this being a ‘bubble’, a closer look at most of these companies will tell you that real revenue, real growth, and a real revolution in India is underway. We believe the next 10 years in the Indian internet ecosystem will be unprecedented and will create a tremendous amount of wealth and progress for our country,” shared Deepinder Goyal in a Blog post as he revealed Zomato’s Q2 result and other investments.

Gurgaon-based firm said its revenue from operations jumped to Rs 1,024.2 crore in the quarter ended September 30 from Rs 426 crore a year earlier, even as its loss widened to Rs 434.9 crore from Rs 229 crore.

It also mentioned that India food delivery Gross Order Value (“GOV”) in Q2 FY22 grew by 19% QoQ and 158% YoY to INR 54.1 billion ($721 million). This growth was driven by an increase in the number of transacting users, number of active food delivery restaurants and active delivery partners on their platform.

Zomato also announced plans to deploy $1 billion in startups over the next couple of years. It also announced key investments in three companies - logistics aggregator Shiprocket, local shopping and savings platform Magicpin as well as fitness startup Cultfit, earlier known as Curefit.

“This has fuelled our ambitions further and we are now thinking about how we can create a $10 billion business by revenue in a few years time. The paradigm for India has changed within a year and that gives us a new opportunity to build a much bigger Zomato than what we dreamt of a year ago,” added Goyal.

It also added that going forward it will focus on; Brutal prioritisation – divest or shut down any businesses which aren’t likely to drive exponential value for our shareholders in the long term, invest in core food businesses and the ecosystem around it to make it a robust long term value driver and build the hyperlocal e-commerce ecosystem by leveraging their key strengths to invest and partner with other companies to tap into growth opportunities beyond food.

“In order to cultivate a great long term partnership with Curefit, we are also investing cash in Curefit. Net $50 million cash investment plus value of the Fitso business (worth $50 million) will give us a cumulative shareholding worth $100 million in Curefit (6.4% shareholding in Curefit). This will help us potentially explore cross-selling benefits between Zomato and Curefit, as we see food and health becoming the same side of the coin in the long term,” added the statement.