Zomato CEO Forecasts $1 Billion Profit by 2030 Despite INR 346.6 Cr Q3FY23 Loss
- ByStartupStory | March 1, 2023
Zomato’s CEO, Deepinder Goyal, made a bold statement that the foodtech startup, which is currently listed, could achieve a $100 billion valuation within the next 7 to 8 years. Goyal also predicts that Zomato will generate a profit of over $1 billion by that time.
According to the CEO of Zomato, the company aims to achieve a valuation of approximately 100 billion by 2030. With the potential for significant growth and profitability, Zomato could surpass billions of dollars in profit within seven to eight years. If this vision becomes a reality, Zomato would become the world’s largest foodtech company.
Despite Zomato’s CEO, Deepinder Goyal, aiming for a valuation of $100 billion by 2030, the company recently reported a 38% increase in losses from the previous quarter, amounting to INR 346.6 crore in Q3FY23. As of February 28th, Zomato’s market cap stood at INR 44,809 crore ($5.42 billion). To achieve a $100 billion valuation, the company’s share price would need to increase by nearly 18.5 times, reaching a value of approximately INR 985 per share, compared to the current value of INR 53.35 per share.
Zomato’s Q3FY23 results revealed that the food delivery segment generated an adjusted revenue of INR 1,565 crore, representing a 1% decline from Q2FY23, but a 30.42% increase compared to the same period the previous year.
However, the number of monthly transacting users slightly dropped to 17.4 million in the quarter ending on December 31, 2022, from 17.5 million in the preceding quarter. Despite a challenging demand environment, Zomato’s CFO, Akshant Goyal, noted during an earnings call that the company has observed a resurgence in demand, indicating that the worst may be over.
Zomato’s quick commerce arm, Blinkit, had a negative impact on the foodtech’s performance rather than boosting it, accounting for almost 86% of the company’s total adjusted EBITDA with -INR 227 crore in Q3 FY23. While Blinkit experienced a surge in the number of orders, reaching 31.6 million in Q3FY23 from 26.1 million in Q2FY23, the quick commerce segment’s average monthly transacting users rose to 3.1 million in the quarter, a 19% increase from the previous quarter. Despite Blinkit’s growth, its negative impact on Zomato’s performance is a cause for concern.
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