Zomato, one of India’s leading food delivery platforms, experienced a remarkable surge in its Gross Order Value (GOV) during the fiscal year 2023-24 (FY24). This growth underscores the platform’s expanding customer base and increasing reliance on online food delivery services nationwide.
Zomato’s Record-Breaking Gross Order Value in FY24
Unprecedented Growth in Orders
In FY24, Zomato reported a Gross Order Value (GOV) of over ₹50,000 crore across its business-to-consumer (B2C) segments, including food delivery, quick commerce, and dining out. This marks a 47% year-on-year growth, with a notable 13% increase just in the third quarter of the fiscal year. This surge was driven by both the core food delivery business and the rapid expansion of Zomato’s quick commerce arm, Blinkit.
Contribution from Core Segments
The core food delivery segment alone witnessed a significant increase in GOV, contributing to a large portion of the total value. This growth can be attributed to Zomato’s efforts to expand its restaurant base and enhance its customer experience, which led to more frequent orders and higher transaction values. Additionally, the quick commerce segment, led by Blinkit, played a crucial role in boosting the overall GOV, nearly doubling its value year-on-year.
Blinkit’s Impact
Blinkit, which Zomato acquired in 2022, emerged as a key growth driver for the company. By the end of FY24, Blinkit’s GOV had nearly doubled, reaching ₹4,027 crore in the last quarter alone. This rapid growth was fueled by the increasing demand for quick delivery services, with Blinkit delivering essential items in under 15 minutes. The quick commerce segment is expected to become an even larger part of Zomato’s business in the coming years.
Looking Ahead: Zomato’s Future Strategies
Zomato’s focus on expanding its quick commerce operations, coupled with continued growth in the food delivery sector, positions the company for further increases in order volumes. With plans to add more Blinkit stores and enhance service quality, Zomato is poised to maintain its growth momentum in the competitive Indian market.\
FAQ
1. What was Zomato’s Gross Order Value (GOV) in FY24?
Zomato’s GOV exceeded ₹50,000 crore in FY24, reflecting a 47% year-on-year growth.
2. How did Blinkit contribute to Zomato’s orders in FY24?
Blinkit significantly contributed to Zomato’s GOV, nearly doubling its value to ₹4,027 crore in Q4 FY24 alone.
3. What factors drove Zomato’s order growth in FY24?
The expansion of the restaurant base, enhanced customer experience, and rapid growth in the quick commerce segment were key drivers.
4. What is Zomato’s plan for Blinkit in the future?
Zomato plans to increase the number of Blinkit stores to 1,000 by March 2025, further expanding its quick commerce capabilities.
5. How has the quick commerce sector impacted Zomato’s business?
The quick commerce sector, particularly through Blinkit, has become a major growth area for Zomato, contributing significantly to its overall GOV.