Mumbai : Zomato is likely to be profitable within a year, the company’s management said in its first annual general meeting post-listing on Tuesday.
Zomato’s chief financial officer, Akshat Goyal, told shareholders: “At the company level, we should break even in six months to a year… without (without) blinkit, which will take a little longer,” Goyal was quoted as saying by Moneycontrol. stated in the report.
As reported by Mint in May, Goyal is focusing on profitability. “We want to get profitability without diluting. That’s how we’re thinking about it. With $1.6 billion in the bank we have, we should get a profitable business on an overall basis…
With both private and public investors asking companies to aim for strong unit economics and profitability, new-age companies are changing strategies and easing cash crunch.
During the earnings call, Zomato founder and CEO Deepinder Goyal had said that it will not spend most of the funds until it becomes profitable. “In FY 18-19, it was all about getting users who were new to this category.”
Zomato has more than 90% business repeat customers. The firm backed by Ant Group made a net loss of 359 crore in FY22 despite 75% revenue growth.
It is working on various new initiatives to bring about horizontal growth. In addition to buying grocery delivery platform Blinkit (formerly Grofers), Zomato has launched intercity food delivery services in select cities in India.
Shares of Zomato are trading right now 58.3 each, at a discount of more than 20% on the issue price of 76 per share.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,