Zomato ad spends up 39% in Q3

Zomato has reported a 39 per cent rise in advertising spends to Rs 521 crore in Q3 of FY25, up from Rs 374 crore in the same period last year. On a quarterly basis, the food delivery platform’s ad spending has increased 19% from Rs 421 crore in the September quarter.

The company’s ad spends for this fiscal stands at Rs 1,338 crore, compared to Rs 1,043 crore in FY24.

Zomato’s net profit has dropped 57% year-on-year to Rs 59 crore, down from Rs 138 crore, as expenses surged to Rs 5,533 crore. Revenue from operations has also increased 64% to Rs 5,405 crore from Rs 3,288 crore the previous year.

The platform’s food delivery segment has grown 2% sequentially and 17% annually, though Zomato noted a slowdown in demand. The gross order value for its consumer-facing businesses, including food delivery and quick commerce, grew 57% year-on-year to Rs 20,206 crore.

Blinkit, Zomato’s quick-commerce arm, has crossed 1,000 stores ahead of schedule and aims to double its count to 2,000 by 2025.

In last 30 days, Zomato has introduced 15-minute food delivery in Delhi, stepping up competition with Swiggy and Blinkit. In December 2024, Blinkit appointed ex-Flipkart executive Vipin Kapooria as CFO, strengthening its leadership amid the quick-commerce race.

Zomato recently invested Rs 500 crore in Blinkit, taking its total investment to Rs 2,300 crore since the acquisition. Meanwhile, Zomato-backed CureFit reported a 42% rise in losses for FY2024 at Rs 888.5 crore, despite a 33.6% revenue increase.

Zomato has also raised Rs 8,500 crore through a placement to support its growth plans.