Zomato Results

Zomato delivered another great set of results. Now they are adding 250Cr cash every quarter. The company hit two benchmarks this quarter according to my calculations, 50,000 Cr worth of orders (4x Q3) and 100 Cr orders (4x Q3), and these are growing 25-30% year on year. Why is this interesting? As some of you might know, they have started adding platform fees to the orders. Even one more rupee of platform fee will add 100 Cr to EBITDA. So, if they increase fees from 5 to 10, that's 500 Cr more EBITDA every year. Now, If you look at this quarter's results vs last quarter's results, they have added ~3600 Cr of order value, and made 380 Cr of EBITDA (this does not include Events). Which means they are making 10% as EBITDA. In next 3 years, if Zomato doubles their order value to 1,00,000 Cr, and even make 8% EBITDA, this could mean 8000 Cr EBITDA (almost 1 billion dollars). What markets will give as multiple on this, is guess work. Could be 25-40x (Don't hold me on this). Hence the stock looks undervalued from a 3 year lens

This may sound like a dumb question, but why do these companies fire just before the IPO? isn't an IPO a good thing? More cashflow. Shouldn't they be taking care of their employees who made it reach there? What exactly is the thought process behind this mass layoff before IPO?

- Swiggy's revenue grew 36 percent from Rs 8,265 crore in FY23 to Rs 11,247 crore in FY24. - Despite the growth, Swiggy still lagged behind Zomato, which had a revenue of Rs 12,114 crore and a profit of Rs 351 crore. - Swiggy's losses were reduced by 44 percent, from Rs 4,179 crore to Rs 2,350 crore, due to better expense control. - The company spent Rs 13,947 crore in FY24, 8 percent less than the previous year, mainly by cutting promotion and marketing costs. - Swiggy's Instamart, however, lagged behind Zomato's Blinkit in quick commerce, with revenues of Rs 1,100 crore versus Blinkit's Rs 2,301 crore. Source: [Moneycontrol](https://www.moneycontrol.com/news/business/startup/swiggy-narrows-gap-with-zomato-on-revenue-food-delivery-business-grew-36-to-rs-11247-crore-in-fy24-12814599.html)

Hey, any Blinkit employees here who can tell us how the company is going to handle the crisis at hand?? With so many dark stores closing and 2500+ delivery partners on strike??

- Zomato grew faster than Swiggy in July, with a 29% YoY increase compared to Swiggy's 11%, according to UBS analysts. - Zomato's MoM order growth was 1.6%, while Swiggy saw a 4.6% decline, leading to increased market share for Zomato. - Zomato's market share in India's food delivery sector is estimated at 55%, while Swiggy's has slipped to 45%. - Zomato has reported five consecutive quarters of net profits, whereas Swiggy logged an operating loss of over Rs 1,000 crore in the first nine months of FY24. - Swiggy CEO Sriharsha Majety acknowledged the pros and cons of having a listed competitor like Zomato, noting the constant comparisons but also the benefits of market awareness. Source: [Moneycontrol](https://www.moneycontrol.com/news/business/startup/zomato-grew-faster-than-ipo-bound-swiggy-gained-more-market-share-in-july-12801796.html)

I know this might be a one off, but even if they are close to profitable/break even quarters, this can become a strong business

- Ant Group, an affiliate of Alibaba, has achieved a fourfold return on its investment in Zomato after selling shares worth over Rs 4,772 crore - The Chinese ecommerce giant initially invested Rs 3,246 crore in Zomato between 2018 and 2020 and has now pocketed Rs 12,521 crore from its stake sales. - Zomato's stock has been rising, driven by the growing value of its quick-commerce unit Blinkit, which UBS values at $15.4 billion, surpassing Zomato's main food delivery business. Source: [Economic Times](https://economictimes.indiatimes.com/tech/technology/ant-group-nets-4x-return-on-investment-in-zomato-after-latest-part-stake-sale/printarticle/112661054.cms)