Zomato, originally known for revolutionizing food delivery in India, has significantly diversified its revenue streams beyond just food delivery. As the company continues to grow, these diverse income sources have played a crucial role in enhancing Zomato’s overall profitability and sustainability.
Zomato’s Expanding Revenue Streams
1. Food Delivery
The backbone of Zomato’s business, food delivery remains a significant revenue driver. In Q1 FY25, Zomato’s food delivery business reported a 27% year-on-year growth in Gross Order Value (GOV), reaching ₹9,264 crore. Despite its dominance, Zomato has strategically expanded into other verticals to reduce its dependency on this single revenue source.
2. Hyperpure
Hyperpure is Zomato’s B2B venture, which supplies high-quality ingredients directly to restaurants. This vertical has seen remarkable growth, with its revenue increasing by 27% quarter-on-quarter to ₹1,216 crore in Q1 FY25. Hyperpure’s direct sourcing model helps restaurants lower costs while ensuring fresh supplies, making it a critical contributor to Zomato’s diversified income.
3. Blinkit (Quick Commerce)
Acquired by Zomato, Blinkit has become a significant player in the quick commerce segment. The service focuses on delivering groceries and essentials in under 15 minutes. In Q1 FY25, Blinkit’s revenue grew by 22% sequentially to ₹942 crore. The rapid growth of Blinkit is not just boosting Zomato’s top line but also helping it tap into a market that extends beyond traditional food delivery.
4. Advertising and Subscriptions
Zomato earns substantial revenue from advertising by charging restaurants for better visibility on its platform. Additionally, its subscription services like Zomato Gold and Pro offer customers discounts and exclusive deals, creating a steady stream of recurring income.
5. Going-Out and Zomaland
Zomato has ventured into the experiential space with its “Going-Out” business, helping users discover dining experiences, events, and entertainment. This business contributed ₹95 crore in Q1 FY25. Zomaland, Zomato’s food and entertainment carnival, also adds to its revenue through ticket sales and event partnerships.
Future Outlook
Zomato’s diversified revenue streams have positioned it as a resilient player in the digital economy. By reducing its reliance on food delivery, Zomato has opened up new avenues for growth, making it less vulnerable to fluctuations in a single market segment. As these additional streams mature, they are expected to contribute increasingly to Zomato’s profitability.
FAQ
1. What are the main revenue streams for Zomato?
Zomato’s main revenue streams include food delivery, Hyperpure (B2B supply chain), Blinkit (quick commerce), advertising, subscriptions, and its “Going-Out” business.
2. How does Hyperpure contribute to Zomato’s revenue?
Hyperpure supplies high-quality ingredients directly to restaurants, contributing ₹1,216 crore in Q1 FY25, marking a significant share of Zomato’s diversified revenue.
3. What is Blinkit, and how does it impact Zomato’s income?
Blinkit is Zomato’s quick commerce arm, focusing on delivering groceries and essentials quickly. In Q1 FY25, Blinkit’s revenue grew by 22% to ₹942 crore, making it a key revenue driver.
4. How does Zomato generate revenue from advertising?
Zomato charges restaurants for enhanced visibility on its platform through advertising, which is a significant revenue stream for the company.
5. What is Zomato’s ‘Going-Out’ business?
Zomato’s ‘Going-Out’ business helps users discover dining and entertainment experiences, contributing ₹95 crore in revenue in Q1 FY25.