Diwali orders on Zomato just got pricier. Here’s what you will pay now
The company also approved a fundraise of up to Rs 8,500 crore through a qualified institutional placement to boost its cash reserves, following its recent acquisition of movie and event ticketing businesses from a digital payments firm.
- Oct 23, 2024,
- Updated Oct 23, 2024 11:33 AM IST
Zomato has raised its platform fee from Rs 7 to Rs 10 just in time for the festive season. The company explained via an app notification that the hike is aimed at sustaining services during this busy period. "This fee helps us keep Zomato running. To maintain services during the festive season, it has increased slightly," the message read.
The platform fee, introduced in August 2023 at Rs 2, was intended to boost margins and drive profitability. Zomato gradually raised the fee to Rs 3, and then to Rs 4 on January 1, 2024. The fee was temporarily increased to Rs 9 on December 31, 2023. With an order volume of 64.7 crore in the financial year 2023, the recent Re 1 hike is expected to add around Rs 65 crore annually to Zomato’s topline.
Zomato’s second-quarter profit, reported on October 22, was lower than expected, largely due to the company's investments in expanding "dark stores" for its Blinkit quick commerce platform. These stores, used to fulfill online orders, have temporarily diluted margins. Zomato's revenue for the quarter rose by 69%, reaching Rs 4,800 crore.
As competition intensifies in India’s online food and grocery delivery sector, Zomato’s main rival, Swiggy, recently offered shares worth $448 million in its initial public offering. Meanwhile, Zepto raised $340 million in August and is planning to list its shares next year.
To stay competitive, Zomato added 152 new "dark stores" in the last quarter, bringing the total number of its distribution centers to 791. However, Blinkit’s contribution margin, the revenue generated from each order as a percentage of the gross order value, fell slightly to 3.8%.
Zomato’s consolidated net profit rose nearly five-fold to Rs 176 crore for the quarter ending September 30. The company also approved a fundraise of up to Rs 8,500 crore through a qualified institutional placement to boost its cash reserves, following its recent acquisition of movie and event ticketing businesses from a digital payments firm.
At 11:15 am on October 23, Zomato shares on the BSE were trading 1.7% higher at Rs 260.7 apiece.
Zomato has raised its platform fee from Rs 7 to Rs 10 just in time for the festive season. The company explained via an app notification that the hike is aimed at sustaining services during this busy period. "This fee helps us keep Zomato running. To maintain services during the festive season, it has increased slightly," the message read.
The platform fee, introduced in August 2023 at Rs 2, was intended to boost margins and drive profitability. Zomato gradually raised the fee to Rs 3, and then to Rs 4 on January 1, 2024. The fee was temporarily increased to Rs 9 on December 31, 2023. With an order volume of 64.7 crore in the financial year 2023, the recent Re 1 hike is expected to add around Rs 65 crore annually to Zomato’s topline.
Zomato’s second-quarter profit, reported on October 22, was lower than expected, largely due to the company's investments in expanding "dark stores" for its Blinkit quick commerce platform. These stores, used to fulfill online orders, have temporarily diluted margins. Zomato's revenue for the quarter rose by 69%, reaching Rs 4,800 crore.
As competition intensifies in India’s online food and grocery delivery sector, Zomato’s main rival, Swiggy, recently offered shares worth $448 million in its initial public offering. Meanwhile, Zepto raised $340 million in August and is planning to list its shares next year.
To stay competitive, Zomato added 152 new "dark stores" in the last quarter, bringing the total number of its distribution centers to 791. However, Blinkit’s contribution margin, the revenue generated from each order as a percentage of the gross order value, fell slightly to 3.8%.
Zomato’s consolidated net profit rose nearly five-fold to Rs 176 crore for the quarter ending September 30. The company also approved a fundraise of up to Rs 8,500 crore through a qualified institutional placement to boost its cash reserves, following its recent acquisition of movie and event ticketing businesses from a digital payments firm.
At 11:15 am on October 23, Zomato shares on the BSE were trading 1.7% higher at Rs 260.7 apiece.