Blinkit, Intercity Legends, Hyperpure: What’s Zomato’s Best Bet?

Zomato launched its latest venture, ‘Intercity Legends’ in August 2022. As the name suggests, this platform will facilitate inter-city food delivery service...

Zomato’s ‘Intercity Legends’

...allowing customers to order anything from Kolkata’s rosogollas in Bengaluru to Delhi’s nalli nihari in Mumbai

Zomato’s ‘Intercity Legends’

Zomato has partnered with logistics companies like Shadowfax, for storage, transportation and delivery and tied up with some commercial airlines.

Working the logistics

The food delivery platform is also working to keep costs of food items under control for intercity customers

Working the logistics

However, just two months after the launch, Siddharth Jhawar, who was heading the vertical, quit Zomato.

Zomato’s Intercity Legends’ head resigns

He has been replaced by Kamayini Sadhwani, who was Director of Category at Blinkit that Zomato acquired a few months ago

Zomato’s Intercity Legends’ head resigns

Recently, many top-level executives at Zomato such as co-founder Mohit Gupta and Rahul Ganjoo, Head of New Initiatives and Vice President for Global Growth, have walked out, while 120 employees have been shown the door 

Calling quits

Zomato introduced Hyperpure in 2019, a B2B wholesale vertical that allows restaurants to buy groceries, meats etc.

Zomato’s B2B vertical Hyperpure

This vertical of Zomato thrived during the first wave of the COVID-19 pandemic. But growth plateaued in the second wave of the pandemic

Zomato’s B2B vertical Hyperpure

As per Karan Taurani, Senior Vice President of Elara Capital,  Zomato’s acquisition of Blinkit can take Zomato on the path to profitability.

Blinkit: Zomato’s saviour
or road block? 

However, many view this acquisition as a speed bump in Zomato’s growth since the situation now is very different from when the deal was negotiated

Blinkit: Zomato’s saviour
or road block? 

The day the Blinkit deal was announced, Zomato’s stock plunged 6 per cent, as analysts believed it to be an overpriced acquisition.

Blinkit: A cause of concern?

As per a report by ICICI Securities, Blinkit continues to be a concern for Zomato, at least in the medium term, with rivals like JioMart, InstaMart and Zepto

Blinkit: A cause of concern?

In light of the looming recession in developed economies, the road ahead for Zomato looks promising as the Indian economy has remained resilient in the face of multiple headwinds

The road ahead

In order to be profitable and for its stock to climb the heights, Zomato needs to find the right ingredients and the perfect recipe to prepare an aromatic business model that appeals to the investors on Dalal Street

Zomato’s journey to
profitability

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