Zomato's fast commerce company, Blinkit, went EBITDA positive in the fourth quarter of FY24, despite plans to aggressively grow by opening 1,000 outlets by March 2025.
The cornerstone to Blinkit's business plan is to extend its physical shop presence. In the previous quarter alone, Blinkit added 75 additional stores, bringing the overall count to 526—a significant rise compared to the total number added in the preceding three quarters combined.
Despite the expenditures involved with this development, Blinkit achieved adjusted EBITDA profitability in March. However, the whole March quarter resulted in an adjusted EBITDA loss of Rs 37 crore.
Looking ahead to the current quarter (Q1FY25), management intends to open another 100 locations.This ambitious expansion is planned to nearly increase the number of stores within 12 months.
Blinkit expects its total adjusted EBITDA to be approximately zero in the future quarters. In a steady operating condition, Blinkit expects to achieve a 4-5% adjusted EBITDA margin as a proportion of gross order value (GOV).
"We are thrilled to be where we are today, but we are also cautious. Deepinder Goyal, CEO of Zomato, stated, "Our journey over the past two years has significantly raised stakeholder expectations, which we will strive to meet."
In the fourth quarter, the fast commerce division produced adjusted sales of Rs 769 crore, nearly double the sum recorded the previous year.
