Zomato’s loss widens to Rs 430 cr

Online food delivery platform Zomato on Wednesday declared that its consolidated loss widened to Rs 430 crore for the quarter that ended on September 30, and increased delivery cost was one of the main reasons.
The company, which went public recently, had posted a loss of Rs 229 crore in the same period last year.

According to CEO Deepinder Goyal, the losses went up owing to investments in the growth of its food delivery business.

Three reasons to be specific – a) increased spending on branding and marketing for customer acquisition, b) increased investments and growing share of smaller/emerging geographies in our business (which are less profitable today compared to more mature cities) and c) increased delivery costs due to unpredictable weather and increase in fuel prices, Goyal said in a statement.

Adjusted revenue for Zomato stood at Rs 1,420 crore ($189 million), a 22.6 per cent growth (on-quarter) and 144.9 per cent growth (on-year).

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