Zomato Ltd on Wednesday reported quarterly revenue that more than doubled as orders on its food delivery business zoomed, while higher expenses caused losses to balloon.

The Gurugram-based company also said it was investing in logistics-tech firm Shiprocket, savings app Magicpin and fitness firm CureFit and added it will invest $1 billion more over the next 1-2 years, with a large chunk likely going into the quick-commerce space.

Zomato's gross order value rose 158% for the reported quarter to 54.1 billion rupees from a year earlier, while revenue from operations jumped 140.2% to 10.24 billion rupees.

Also read: Zomato-owned Fitso sets up Daalchini’s food kiosks at its centres

It generates most of its revenue from food delivery and related fees it charges restaurants for using the company’s platform.

However, the company reported a wider loss for the quarter ended September 30, hurt by a steep rise in branding and marketing expenses.

“While this resulted in our losses expanding further, we believe this was a great opportunity to double down on expanding our user base cost efficiently,” Zomato said in a statement.

Consolidated net loss for the food delivery company was ₹4.30 billion ($57.85 million) for the second quarter, compared with a loss of ₹2.30 billion a year earlier.

Related Topics
comment COMMENT NOW