Zomato Q1 loss narrows; to move to multiple CEO structure

BL Bengaluru Bureau | | Updated on: Aug 01, 2022

The app of Indian food delivery company Zomato is seen on a mobile phone above its logo displayed in this illustration picture taken July 14, 2021. REUTERS/Florence Lo/Illustration/File Photo/File Photo | Photo Credit: FLORENCE LO

Rebrands itself as ‘Eternal’; plans to move to a multiple CEO structure

Zomato, an online food delivery platform, has reported a consolidated loss of ₹186 crore for the quarter ended June 30. The loss narrowed 48 per cent from ₹359.7 crore, reported in the previous quarter. 

Revenue from operations stood at ₹1,413.9 crore, up 67.44 per cent from ₹844.4 crore reported in Q1 2021.

Deepinder Goyal, Chief Executive Officer, said, “Our focus on profitability has sharpened over the past few months with the change in market context, without compromising our focus on growth. We are doing that by assessing everything with a critical lens and allocating resources by taking a long-term view to sustainable growth, as well as profit.” 

The company said it has hit adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) break-even. The EBITDA loss stood at ₹150 crore compared to ₹220 crore reported in Q4. 

Akshant Goyal, Chief Financial Officer, said, “Growth in revenue was driven by 10 per cent QoQ growth in Gross Order Value (GOV) and growth in revenue per order. GOV growth was in turn driven by robust growth in order volumes and mild growth in average order values as compared to the previous quarter.” 

Multiple CEO structure

Zomato has internally rebranded itself to ‘Eternal’ and plans to move to a multiple CEO structure, according to a Slack message sent to employees by CEO and MD, Deepinder Goyal.

“We are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses (Eg: Zomato, Blinkit, Hyperpure, Feeding India), all acting as peers to each other and working as a super-team with each other toward building a single large and seamless organisation,” Goyal said in the message.

He added that Zomato is maturing from running a single business to running multiple large companies. The larger entity over these multiple companies will be called Eternal. “The word Eternal is a mission statement in itself. Eternal means forever, something that will last for more than just a few lifetimes. Boundless, timeless, undying, endless, permanent - are some of the other words that can be used to describe Eternal,” Goyal added in the internal message.

 

Zomato’s scrip ended at ₹46.35, down 1.07 per cent, at market close on Monday.

Published on August 01, 2022
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