Also in this letter:
■ ETtech Deals Digest
■ FTX founder Sam Bankman-Fried convicted of fraud
■ Apple India posts record revenue
Zomato’s profitability improves further in Q2
Deepinder Goyal, founder & CEO, Zomato
Online food delivery platform Zomato on Friday said its profit rose significantly for the quarter ended September 2023 to Rs 36 crore, compared to Rs 2 crore it posted last quarter.
- Revenue from operations surged 71% year-on-year (YoY) to Rs 2,848 crore, higher than Street expectations of Rs 2,607 crore.
- The gross order value (GOV) across its B2C businesses (food delivery, quick commerce, going-out) grew 47% YoY to Rs 11,422 crore.
- Food delivery business saw GOV hit Rs 7,980 crore, against Rs 7,318 crore in the previous quarter.
- Adjusted revenue in the second quarter rose 53% YoY to Rs 3,227 crore.
Driven by Gold: Zomato said its core food delivery business rode on the success of its Gold subscription programme, among other things. The GOV growth was “almost entirely led by growth in order volumes, while the average order value remained largely flat,” said Rakesh Ranjan, chief executive of the food delivery vertical. About 40% of the GOV in the latest quarter was driven by users of the Zomato Gold subscription, whose membership grew to 3.8 million from 2.0 million in the preceding quarter.
Blinkit sees positive contribution margin: Zomato’s quick commerce arm, Blinkit, reported a positive contribution margin for the first time ever. Contribution margin as a percentage of GOV was at 1.3% in the latest quarter, against -7.3% a year earlier, with contribution at Rs 36 crore in the latest quarter.
Stock movement: The positive results saw Zomato’s shares topping a market capitalisation of $12 billion. The stock closed at Rs 116.40 on the BSE, up 8.28% from the previous day’s close.
Shiprocket’s FY23 net loss widens nearly four-fold: Gurugram-based logistics solutions provider Shiprocket’s FY23 operating revenue shot up by 78% to Rs 1,089 crore as the company expanded its stack from shipping and fulfilment to include customer communication and marketing, providing these services to direct-to-consumer sellers.
As a result of adding to its stack inorganically, Shiprocket’s net loss widened to Rs 341 crore during the year ended March 31, from Rs 93.1 crore a year earlier.
The Economic Times Soonicorn Summit 2023 Delhi-NCR edition on Friday saw a host of diverse discussions ranging from what companies should keep in mind as they approach an IPO to what will be the next frontier for the fintech ecosystem.
Some key highlights:
From left: Kunal Bahl, cofounder Titan Capital; Priyanka Sahay, assistant editor, ET Prime; Rohit Bansal, cofounder, Titan Capital
‘Investment in Mamaearth happened by chance’: Kunal Bahl, cofounder of Titan Capital and Snapdeal founder, said his investment in Mamaearth happened because of an epiphany in his bathroom, after finding a white and green shampoo bottle in it one fine day.
Bahl was speaking at the ET Soonicorns Summit 2023 in New Delhi.
Bahl, along with his Snapdeal cofounder Rohit Bansal, invested Rs 38 lakh in the company back in 2017. They are poised to make a 100x return on that investment from Mamaearth parent Honasa Consumer’s initial public offering, ET reported on October 31.
From left: Upasana Taku, cofounder, Mobikwik; Digbijay Mishra, deputy editor, ETtech; Bipin Preet Singh cofounder & CEO Mobikwik
Mobikwik eyes profitability, IPO in FY25: Digital payments and financial services company Mobikwik is on track to attain full profitability and pursue a public offering in FY25, the company’s cofounder Upasana Taku said. “We are working towards achieving full profitability…while achieving strong double digit growth,” Upasana Taku, cofounder, Mobikwik, said at the ET Soonicorns Summit in New Delhi.
From left: Digbijay Mishra, deputy editor, ETtech, with Prashant Tandon, cofounder & CEO, 1mg
Tata 1mg will be profitable in a few quarters: Tata Digital-owned epharmacy platform 1mg is a few quarters away from overall profitability, the company’s founder Prashant Tandon said on Friday. “A bunch of our businesses are profitable in terms of earnings before interest, taxes, depreciation and amortisation (Ebitda) and a bunch of them will be Ebitda profitable,” he said.
ETtech Deals Digest: October investments down over half to $538 million
With no signs of a respite from the funding winter, Indian technology startups logged a total funding corpus of just $538.4 million in October, about 53% of the corresponding figure a year ago.
A majority of the investment was seed-stage funding, across 92 rounds. In October last year, startups had raised a total of $1.14 billion across 149 rounds, as per Tracxn data. Signs of a funding winter had begun to emerge from September 2022.
Sequentially, the month of October saw a 38% dip, from $870 million. In terms of volume, it was a 21% dip from 76 funding rounds.
Verdict is in: Sam Bankman-Fried guilty on all counts
Cryptocurrency exchange FTX founder Sam Bankman-Fried was found guilty on Thursday of stealing from customers of his now-bankrupt firm in one of the biggest financial frauds on record.
Verdict details: After the month-long trial, a 12-member jury rejected Bankman-Fried’s claim during testimony in Manhattan federal court that he never committed fraud or meant to cheat customers before FTX, once the world’s second-largest crypto exchange, collapsed into bankruptcy about a year ago.
US District Judge Lewis Kaplan set Bankman-Fried’s sentencing for March 28. The ex-crypto moghul could face decades in prison.
SBF’s response: His defense lawyer Mark Cohen said in a statement that he was “disappointed” but respected the jury’s decision. “Mr Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him,” he said.
Catch up quick: In November 2022, the FTX empire imploded due to massive withdrawal requests from customers who panicked on learning that some of the funds stored at the company had been committed to risky operations at Bankman-Fried’s personal hedge fund, Alameda Research.
Bankman-Fried is set to go on trial next March on a second set of charges brought by prosecutors earlier this year, including for alleged foreign bribery and bank fraud conspiracies.
Apple posted record India revenue in Q4 2023
Apple chief executive Tim Cook said on Friday that the iPhone maker set a quarterly revenue record in India with a strong double-digit year-on-year growth in the July-September period.
Upbeat: Cook said iPhone revenue exceeded the company’s expectations, setting an “all-time record” in India, among quarterly records in other markets.
“It’s (India) an incredibly exciting market for us, and a major focus of ours. We have a low share in a large market. And so it would seem that there’s a lot of headroom there,” Cook said during the post-earnings investor call held Friday.
Apple’s highest quarterly revenue in India comes on the back of strong iPhone sales in the July-to-September period.
Apple’s sales fall: Apple’s sales remained on a downward slope during the quarter ended September 30, 2023, resulting in a full year of declining revenue.
The company posted quarterly revenue of $89.5 billion, down 1% on year, with iPhone sales contributing $43.8 billion.
Apple reported a decline in revenue on all product categories except the iPhone, which grew 3% on-year, and services where the company saw a whopping 16% on-year growth. The growth was driven by over a billion paid customers for its services that include cloud storage, music streaming, movies and shows, and fitness coaching.
“We continue to face an uncertain macroeconomic environment,” Cook said.
Today’s ETtech Top 5 newsletter was curated by Megha Mishra in Mumbai and Gaurab Dasgupta in New Delhi.