Zomato’s losses more than tripled in its first quarterly report since it listed last month, as the company’s spending soared and the pandemic hit the company’s restaurant business.
The company, headquartered in Gurgaon, reported (PDF) a net loss of $ 48 million for the quarter ended in June, up from approximately $ 13.5 million for the same period last year.
The 12-year-old company also saw strong sales growth, increasing from $ 35.7 million to $ 113.4 million in the aforementioned period as more people in the country began ordering groceries online.
The company said it shipped more than 100 million grocery orders in the last quarter and topped a billion orders in the past six years.
“This is mainly due to non-cash ESOP expenses, which increased significantly in the first quarter of FY22 due to significant ESOP grants awarded during the quarter as part of the creation of a new ESOP 2021 program. This divergence in reported profit / loss and adjusted EBITDA will continue in the future, ”says a blog post signed by Zomato executives.
The executive said in the post that the second wave of coronavirus that hit the country from April “had a significant impact on the restaurant business in the first quarter of FY22 and wiped out most of the industry’s profits in the fourth quarter of FY21”.
Zomato stock, which made a stellar debut on Indian stock exchanges last month, fell 4% on Tuesday prior to results and closed slightly below the original issue price of $ 1.68 per share on July 23, the Zomato at the time valued at $ 13 billion.
The company said it would conduct one call to analysts annually – instead of the usual four – and answer questions on blogs and quarterly shareholder letters.
In India, Zomato competes with Swiggy, which is supported by SoftBank and Prosus. Last month, the Indian grocery delivery startup announced it had raised $ 1.25 billion in a new round of funding. SoftBank Vision Fund 2 rated Zomato before making its bet on Swiggy, said people familiar with deal flow.
Both companies have expanded into new categories in the past few quarters, including food delivery.
Zomato is the first current wave of Indian consumer internet startup to go public. India’s financial services company Paytm and MobiKwik, as well as online insurer PolicyBazaar and online beauty product company Nykaa have submitted the papers to go public later this year.