Company Analysis Report

Zomato Ltd
"Never Have a Bad Meal"
About the Company NSE Code :ETERNAL LTD
Zomato is an Indian online food ordering and delivery service owned by Eternal Limited. Created in 2008 CMP : 237.55
by Deepinder Goyal and Pankaj Chaddah, it began as a restaurant aggregator, providing menu 52 Week H/L : 304.70/146.30
information, user reviews, and recommendations, and expanding to more than 20 countries. Having its
Headquater in Gurugram ,in 2015, Zomato entered the food delivery market in India, which soon after Stock Data as on 23rd May
became its core business. As of 2023, it provides food delivery and table reservation options in more than
800 Indian cities.As of Q4 FY25, the company has 1007 Stores. Nifty 50 : 24845.15
Business Profile (INR In Crs) O/s Shares (In Crs ) : 965.03
Dividened Yield(in%) : 0.00%
Segments GOV
1
Adjusted Revenue Adjusted EBITDA
Market Cap(in Crs) : 229244.08
A. Food ordering and delivery Beta of Stock With Nifty : 0.8570
platform where customers can Top Shareholder's in the Company (in%)
search and discover local 32,224 7,792 912 Info Edge Ltd 12.38%
restaurants, order food, and have 23% YoY 27% YoY 922 YoY Deepinder Goyal 3.83%
it delivered reliably. Sbi Nifty 50 Etf 2.43%
B. Quick delivery (in <15 minutes) of Antfin Singapore H.Ltd 1.95%
products across categories i.e Icici Prudential Fund 1.78%
fresh, staples,electronics, beauty, 32,224 2,301 -384 Kotak Flexicap Fund 1.77%
general merchandise. 93% YoY 116% YoY 632 YoY Uti-Flexi Cap Fund 1.75%
Camas Investments Pte. Ltd. 1.74%
Combination of Dining-out & 3,225 258 -6 Nippon Life India Trustee Ltd 1.49%
C. ticketing business i.e events and 136% YoY 51% YoY 7 YoY Hdfc Mutual Fund - Mid Cap 1.48%
outdoor entertainments. Shareholding Pattern
D. B2B business (Hyperpure) - 3,172 -126 5.98%
supplying quality food 111% YoY 68 YoY
Fii
ingredients
26.18% 44.36% Diis

E. Others - 22 -24 Public

23.47%
others
Total 13,545 372
(All Businesses)

Revenue By Segment Adjusted Revenue CAGR : 44% GoV Business

(FY20-FY24)
18,000
16,000
23.42% 70,000
14,000
60,000
12,000
2.07% 50,000
57.53% 10,000
8,000 40,000
16.99% 6,000 30,000
4,000 20,000
2,000 10,000
Food Delivery Quick Commerce
0 0
Going-out B2B Supplies FY20 FY21 FY22 FY23 FY24 9MFY25 FY20 FY21 FY22 FY23 FY24 9MFY25

Financial Highlights
 Improvement in profitability resulting in steady increase in cash balance (cash balance as at end of Q3FY25: INR 19,235 crore)
 Blinkit GOV scaling rapidly driven by increase in transacting customer base and AOV; FY26 GOV expected to grow 100%+ YoY
 Improvement in profitability largely driven by operating leverage due to higher throughput per store.
 At the end of Mar-24, we had 7.4 million active Gold members on our Platform
 Zomato’s take rate in the September quarter of FY24 was 24.1%, an improvement of 28 basis points
 Average monthly transacting customers grew 73% YoY to 5.1 million in FY24.
 The Ticketing Platform has been launched in 13 cities in India through a separated live tab on the Zomato app.
 Food delivery revenue from operations grew 40% YoY to INR 6,361 crore in FY24
 Hyperpure revenue more than doubled to INR 3,172 crore (111% YoY growth) in FY24
 Going-out business grew 51% YoY to INR 258 crore from INR 171 crore in FY23.
 Ever Wondered How Zomato Revenue Model Look Like?

Sources of Revenue Food Delivery GOV 32,335 Food Delivery Orders 753
A.Food Delivery and Table Reservation Commissions 26,305 647
One of Zomato’s primary revenue streams is the commission it charges 535
21,297
restaurants for each order placed through its food delivery service. When a
user orders food from a restaurant via the Zomato app, the restaurant pays a
percentage of the order value as a commission to Zomato. This commission
varies, but is typically in the range of 15% to 25% of the order amount,
depending on the restaurant’s agreement with Zomato. Also, Zomato earns a
commission from the restaurant for each successful reservation made
through its platform. FY22 FY23 FY24 FY22 FY23 FY24

Delivery Fees INR(in Crs) INR(in million)

In addition to the commission charged to restaurants, Zomato may impose Annual Transacting 63 Active Restaurent
delivery fees on customers for food orders. These fees contribute to the Customer Partners 247
overall revenue, with the amount often varying based on factors such as 210
order value and location. 58 180

Advertising and Promotions

Zomato offers restaurants a variety of advertising and promotional services 53
to enhance their visibility on the platform. Restaurants pay to feature their
listings prominently, run targeted ad campaigns, and offer special deals to
attract customers. These advertising services constitute a significant portion
of Zomato’s revenue. FY22 FY23 FY24 FY22 FY23 FY24
INR(in million) INR(in'000)
Zomato Gold
Zomato Gold is a subscription-based loyalty program that offers members Adjusted Revenue 7,792 EBIDTA 912
exclusive discounts and perks at partner restaurants. Users pay a
subscription fee to access these benefits. While a portion of this fee is 6,147
passed on to the partner restaurants, Zomato retains a share, contributing to 4,763
its revenue.
-10
Improvement in Adjusted EBITDA was dirven by (a) Higher Average order
value ,(b) Improvement in Take Rate and Ad monetisation,(c) Introduction
-766
and increase in Platform Fee and (d) Cost Efficiences.
FY22 FY23 FY24 FY22 FY23 FY24
INR(in Crs) INR(in Crs)
B Quick Commerce
Quick Com GOV Quick Com Orders
GOV grew 93% YoY to INR 12,469 crore in FY24 driven by a 71% YoY 12,469
203
growth in order volumes and 13% YoY increase in AOV.
The GOV growth was largely on account of higher throughput from
6,448 119
our existing store network,reflected in the 70% YoY growth in average
GOV per day, per store.
Average monthly active riders increased to 67k in FY24 from 34k in
FY23 in line with the growth in the overall business
FY23 FY24 FY23 FY24
Revenue grew faster than GOV at 116% YoY to INR 2,301 crore in FY24. Revenue as a % ofINR(in
GOVCrs) INR(in million)

increased by ~2 percentage points YoY driven by improvement Revenue 2,301 EBIDTA

across all key revenue levers –commission, ad monetization
and customer delivery charges
The improvement in Adjusted EBITDA margin in FY24 was driven 1,063 -384
by both revenue and cost levers. Revenue per order increased due
to (a) increase in AOV and (b) higher commission, ad revenue and
per order due to higher throughput per store and
-1,016
(b) efficiencies in fixed costs below Contribution.
FY23 FY24 FY23 FY24
INR(in Crs) INR(in Crs)
C. Going Out
In FY24, Zomato combined our existing dining-out business and GOV 3225 Revenue
258
the nascent ticketing business into a new segment called ‘Going-out’.
This is now the third B2C business coming out of Zomato.
171
Improvement in profitability was largely driven by
the India dining-out business which generated 1366

positive Adjusted EBITDA in FY24.

Our ticketing business incurred losses largely
driven by growth investments in this business given
its nascent stage. FY 23 FY 24 FY 23 FY 24
INR(in Crs) INR(in Crs)
D.B2B Supplies (Hyperpure)
Hyperpure revenue grew 111% YoY to INR 3,172 crore in FY24 Revenue EBIDTA
3172
driven by growth in both the core restaurant supplies business
and the newer quick commerce opportunity that we started tapping
into in FY23.
1506
Adjusted EBITDA margin improved to -4% in FY24 compared -126
-139
to -13% in FY23 driven by (a) gross margin expansion due to 538
better sourcing and growing mix of high margin categories, -194
(b) increase in minimum order value threshold leading to Inc
FY22 FY 23 FY 24 FY22 FY 23 FY 24
in AOV (as a result of churn in smaller unprofitable restaurants),
and (c) scale related supply chain cost efficiencies. INR(in Crs) INR(in Crs)

E Others
Till FY23 "Others" Include (a) Revenue from Dining out in India & UAE,(b) Revenue from Zomato Live that Includes events like Zomaland
During FY24 Zomato has re-classified "Going out" as a separate business segment including dining out (India& UAE) + Ticketing.\
Prior to FY23, Dining out business(India&UAE) is a part of Others segment
 Breakup of the Cost Elements : Cost Analysis

Cost Elements
Cost of goods sold Finance Cost
COGS primarily relates to the Hyperpure business and grew in Increased 47% YoY to INR 72 crore in FY24. This primarily
line with Hyperpure Revenue growth where Zomato increased includes interest on lease liabilities recorded under Ind AS 116
the minimum order value threshold below which restaurants are which increased YoY as Blinkit store network scaled to 526
not allowed to place orders. This led to churn of smaller stores by Mar-24 from 377 stores in Mar-23.
unprofitable customers and increase in average order value
which resulted in better profitability.
Delivery and Related Charges Advertising and Sales promotion expenses
Increased 54% YOY in FY24 due to increase in food delivery fee Increased 17% YoY to INR 1432 in FY24. This includes Platform
paid to delivery partners due to increase in order volumes as a Funded subsidies(Eg.Discount from own pockets of the
result of free accounts opened under Zomato Gold Zomato),marketing, customer Acquistion cost and customer
Program.Further there had been increase in delivery partner retention cost.
support cost.
IT Support Services Outsourcing
Increased 25% YoY to INR 485 in FY24 due to Software Increased 11% YoY to INR 330 in FY24 due to recruitment of off
Subscription Cost, Server hire charges and communication cost roll manpower cost in Quick Commerce business operations and
for Consolidated operations i.e including Blinkit. call center and support across food delivery and Quick
commerce operations.
Payment Gateway Charges Others
Increased 23% YoY to INR 190 Crore in FY24 due to i ncreased in Increased 43% YoY to INR 1179 which includes warehousing
GOV transacted across our Platform. Cost, Logistics cost,Rental expenses, Legal & Professional
Charges, General & adminstrative Charges.
Depreciation Employee Benefit Expenses
Increased 20% YoY to INR 526 in FY24 due to Increase In ROU Increased 13% YoY to INR 1659 in FY24 due to Increases in
Assets recoginesd under IND AS 116. salaries and wages due to Increase in overall head count of the
Zomato.
4.15%
Others 0.57%

Payment Gateway 13.09%

30.90%
Outsourcing
22.75%
IT Support
11.30%

Advertisement 9.31%
3.83%
Delivery 1.50% 2.60%
Delivery Advertisement IT Support Outsourcing
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Payment Gateway Others COGS Employee Benefit
FY24 FY23
Finance Cost Depreciation
 Global Trends Overview

Competing Market Size Global Online Food Online Food Delivery- India($
The India online food delivery market, valued at USD 48.07 delivery Market Size Billion) Growing at CAGR of
Billion in 2024, has seen substantial growth, offering access to a
Estimations 27.30%
diverse range of cuisines and dining options. The market is
expected to grow at a compound annual growth rate (CAGR) of 1.57
27.30% from 2025 to 2034, potentially reaching USD 537.23
Billion by 2034, as delivery platforms adopt eco-friendly
packaging and sustainable practices to appeal to 204.57
environmentally conscious consumers.Further the Online Food 0.78 160.7
126.24
Delivery Market size is estimated at USD 0.78 trillion in 2025, 99.17
77.9
and is expected to reach USD 1.57 trillion by 2030, at a CAGR of 61.19
15.01% during the forecast.

2025 2030 2025 2026 2027 2028 2029 2030

ONDC Vision: In a Nutshel
ONDC aims to pave the way for revolutionising digital commerce
in India and creating a globally accepted paradigm. To ensure
widespread involvement by stakeholders in India's digital
commerce ecosystem through various gateways, an “open
network built on open protocols based on open-source
standards with established registries”4 is being developed
Restaurants typically leverage food delivery platforms or their
own website/tele-calling to grow their take-away
business.ONDC will provide an additional channel to drive
orders from customers. Restaurants can leverage ONDC’s
network partners (gateways, logistics, etc.) to serve their
customers

Ecommerce : Upcoming India

India’s e-commerce industry, valued at Rs. 10,82,875 India E-Commerce Market(US$ billion)
crore (US$ 125 billion) in FY24, is projected to grow to
Rs. 29,88,735 crore (US 345 billion) by FY30, reflecting a
compound annual growth rate (CAGR) of 15%.
 India's e-commerce market is set to reach US$ 345 billion
by FY30 fueled by 500 million shoppers and increased
internet access, especially in rural areas. By FY26, over
1.18 billion people are expected to have smartphones,
enhancing digital transactions. Rural areas will drive over
60% of demand, particularly from tier 2-4 towns.
 In India, 100% FDI is permitted in the B2B
FY21 FY22 FY23 FY24 FY30F